OPINION | This article contains the author's opinion.
“Shark Tank” sensation Kevin O’Leary warns that difficult times lie ahead under the Biden administration.
O’Leary says September is set to bring significant economic turbulence, thanks to surging interest rates.
“We have a crisis emerging. I’m talking about companies with five to 500 employees, which represent over 60% of our economy,” O’Leary said.
RUNNING ON FUMES: ‘Shark Tank’ star Kevin O’Leary sounds the alarm on the state of small businesses in Biden's economy. pic.twitter.com/BDUxpSyTyB
— Fox News (@FoxNews) September 1, 2023
In recent weeks, O’Leary has been sounding the alarm about an impending crisis for U.S. small businesses, despite some temporary relief from record inflation in the economy.
He recently took a trip to Capitol Hill, where he engaged with various stakeholders, emphasizing the looming liquidity crisis.
O’Leary’s warning highlights a concerning trend.
Within the next three years, the current count of approximately 4,100 regional banks is expected to plummet to just 2,000.
“They’re not lending. The loan books closed down. The rates that he pays for money have gone from 4-5% to 11-17%, and we’re not talking about them. But you’re going to hear a lot of people crying about this in the next few months.”
This decline raises anxieties among individuals considering where to entrust their money.
The genies out of the bottle. There's a whole generation of employees who have proven over a three-year period that they can work remotely. pic.twitter.com/L3OcMlFL8d
— Kevin O'Leary aka Mr. Wonderful (@kevinolearytv) September 6, 2023
“During that period, people are very nervous about putting their money in the bank. Because if another one fails, and you have your cash in there right now, you’re only guaranteed for 250,000.”
According to Reuters, the National Federation of Independent Business (NFIB) Small Business Optimism Index witnessed a 1.6-point increase, reaching 91 points in its June report, marking a seven-month high in confidence among small businesses.
“I’m in the real world talking to CEOs of small companies that are family-owned in America, in almost every state, every day.”
“They’re not happy either. So I’m not listening to that data. I’m dealing with reality,” he said.
Despite this apparent optimism in the data, O’Leary remains skeptical and challenges the idea that everything is going smoothly.