Shark Tank Star Warns Interest Rate Hikes Will Cause Chaos

(TargetDailyNews.com) – Famed investor Kevin O’Leary is insisting that “real chaos” is on the way to the American economy. During a recent appearance with Larry Kudlow, the staunch critic of Bidenomics said that the economic “chips” have already begun “to fall.” The Shark Tank host said that interest rate uncertainty is behind much of what is unfolding.

O’Leary told Kudlow that because regional banks are unaware of what their near-term capital requirements are going to be, they have reacted by stopping most loan activity. The watch aficionado told the host that institutions have shut down lending like a turtle would close its shell.

According to O’Leary, anguish is on the way for the commercial real estate and housing mortgage industries. He said that 40 percent of current bank lending activity is in the form of commercial property loans. Although those loans were initially made at manageable rates of 5 and 6 percent, they will soon climb to as high as 11 percent.

Once commercial property owners stop being able to pay on their notes, banks will fail and a run will ensue. O’Leary said the market is already anticipating the effects of the forthcoming rate changes. The possibility of sudden bank runs is forcing many small business owners to move payroll accounts away from regional institutions and into larger ones, he said.

O’Leary appeared to suggest that small business was being intentionally stifled. He pointed to the fact that around one trillion in bailouts was provided to big money, while virtually nothing was given to small businesses. He then told Kudlow that he foresees the possibility of Congress needing to step in again if conditions deteriorate enough.

The investor with a $400 million net worth has been highly critical of White House claims regarding inflation. O’Leary said recently that while the administration publicly touts lower CPI inflation, they ignore core numbers. He says Americans are “getting killed” by the latter.

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