Billionaire Carl Icahn told CNBC on Tuesday there are too many exotic, leveraged products for investors to trade and one day these funds are going to blow up the market.
"The market is a casino on steroids" with these derivatives and they are the "fault lines" that will lead to an earthquake on Wall Street, Icahn said. "The market itself is way over leveraged."
I don't know if Icahn has any special genius knowledge, but if you're betting what you have you can only go broke. If you're betting 100X what you have, then everyone can go broke. This is not rocket surgery.