Jarkesy Money – President Barack Obama’s deficit reduction plan is “generational theft on an enormous magnitude,” according to Ken Langone, co-founder of The Home Depot.
“If I have to give a talk, I ask people … if you had one meal left, and you had your grandchild with you, would you eat it or would you give it to your grandchild?” Langone said. “They all say, `I’ll give it to my grandchild.’ Guess what? They’re eating their grandchildren’s breakfast, lunch and dinner right now, and they haven’t been born yet.”
In addition, Langone told CNBC that the U.S. debt as a share of the economy will cause a fiscal storm.
“The fundamentals haven’t changed. … And we don’t know when the storm is going to hit,” he said. “It has to happen. If you look at our debt to [gross domestic product], eventually you reach a point where there’s no turning back.”
He cautioned against being overly influenced by the run-up in stocks.