Carl Icahn says there 'very well could be a recession or even worse'

Famed investor Carl Icahn said Tuesday an economic downturn could be on the horizon and he is loaded on protection against a steep sell-off in the market.

"I think there could very well could be a recession or even worse," Icahn said on CNBC's "Closing Bell Overtime" to Scott Wapner. "I have kept everything hedged for the last few years. We have a strong hedge on against the long positions and we try to be activist to get that edge... I am negative as you can hear. Short term I don't even predict."

Icahn, founder and chairman of Icahn Enterprises, is a longtime activist investor.

"There's no accountability in Corporate America. You have some very fine companies, very fine CEOs, but far too many that are not up to the task," Icahn said.

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