Higher rates are hitting regional banks, commercial real estate, and small businesses, he says.
"We've got the pressure at the regional banks, commercial real estate collapse, and small business not getting any capital," the "Shark Tank" investor told "Kudlow" in a recent interview.
The Federal Reserve has rushed to crush historic inflation by hiking interest rates from nearly zero to north of 5% since last spring.
Many small businesses and CRE developers rely heavily on debt financing from smaller banks, meaning higher rates and a credit crunch pose serious threats to them.
He cautioned in another recent interview that the Fed was likely to lift rates higher than 6%, sending residential mortgage rates from a little over 7% today to above 8%.
Persons:
Kevin O'Leary, We've, it's, O'Leary, CRE, hasn't
Organizations:
Service, Federal Reserve, Bank, Wall Street titans, JPMorgan
Locations:
Wall, Silicon