A top market analyst refused to mince words regarding the dramatic drop in global financial markets, saying the whole world needs to shut down, or many major businesses will go bankrupt.
Bill Ackman, who heads Pershing Square Capital Management, urged President Trump on Wednesday to close all American borders and shut down the entire country for a 30-day holiday.
“It’s going to zero, OK, along with every other hotel company in the world,” said Ackman during an appearance on CNBC’s Fast Money Halftime Report.
“You say Hilton is going to zero?” asked host Scott Wapner.
“If we allow this to continue … every hotel company in the world, OK, is done. Because no business can survive a period of 18 months without revenue, OK, and — stick with me — that’s what happens, OK, if you operate the way we’re operating now,” the hedge fund manager responded.
Although Ackman sounded the alarm for investors, he did mention that he was buying Hilton stocks because he has faith the market will eventually rebound.
“I’ve been aggressively buying stocks including Hilton, today, OK, and I’ve been buying all the way down, Hilton, restaurant brands, Starbucks,” said Ackman, later adding, “The only answer for the world is to shut the world for 30 days.”
Ackman, who has been hunkered down in his home for a month and took cash out of the ATM to have on hand in case of a full-blown crisis, pleaded for President Trump to declare an “extended spring break” and pay U.S. citizens their wages, which he believes would slow down the sell-off.
“Tell all Americans that you are putting us on an extended spring break at home with family. Keep only essential services open,” Ackman tweeted earlier on Wednesday.”The government pays wages until we reopen.”
He claimed that if Trump declares a spring break, the market would rebound immediately.
“Mr. President, the moment you send everyone home for spring break and close the borders, the infection rate will plummet, the stock market will soar, and the clouds will lift,” he wrote in a follow-up tweet. “We need your leadership now!”
Ackman also proposed adding new measures that would include placing a moratorium on foreclosures and mortgages to alleviate the U.S. working class.
