Shark Tank Star Kevin O’Leary Warns of Emerging Financial Crisis, Bank Failures
Shark Tank star Kevin O’Leary, aka Mr. Wonderful, has sounded the alarm about an impending financial crisis.
“We have a crisis emerging,” he warned, emphasizing that small business owners will be
“cut off at the regional bank level.” He stressed:
“You’re going to hear a lot of people crying about this in the next few months.”
“If you’re in the S&P 500, you have no trouble financing your business. You can’t say that about small business anymore. The cost of capital has gone through the roof,” the Shark Tank star stressed. He explained small business owners will be
“cut off at the regional bank level.” He emphasized:
“They’re not lending. The loan books closed down … you’re going to hear a lot of people crying about this in the next few months.”
O’Leary warned that the current count of
around 4,100 regional banks is expected to decrease
to 2,000 over the next three years, raising concerns among people about depositing their money in banks.
O’Leary is particularly concerned about government policies of giving money to large corporations and not small businesses.
“We’ve got the CHIPS and Science Act. Where’s that money going? Behemoth giant companies in the S&P 500. The Inflation Reduction Act, another trillion not even printed yet. All going to big guys. Now, that’s great. They represent 40% of the jobs in America, the S&P 500. Everybody knows the S&P 500 is the biggest index in the world. But 60% of America is small business. That’s where 60% of the jobs come from. We’ve given nothing to them. And so they’re struggling because the Fed is raising rates up to 5.5% in a matter of months,” he shared with Fox News.
