Rumblings on damaged state of US economy

When you hear this on CNBC, you know there’s a problem. Even Larry Kudlow can’t put a happy face on this news.

“It now seems like we’re falling off a precipice,” says [Carl] Icahn. “It’s not the end of the world forever but I think there are shoes that could fall. For instance, commercial real estate could get hit hard. There was just too much leverage put on them… and retailers are down a lot, perhaps too much. They may be cheap. But that said, American management teams are, apparently, not up to the job.”

And from Governor Spitzer on Subprime crash: “All the financial services companies need to get rid of the junk on their balance sheets,” he says, “and then raise the capital needed.”

“What worries me most is that their capital debt is going to have a huge negative impact on the lending capacity and that could drag the whole economy down,” he adds. “The magnitude of this is grossly underestimated.”

An American in Paris, France. BA in History & Political Science from Ohio State. Provided consulting services to US software startups, launching new business overseas that have both IPO’d and sold to well-known global software companies. Currently launching a new cloud-based startup. Full bio here.

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