Carl Icahn - "Danger Ahead"

Billionaire investor Carl Icahn thinks stocks could go down "a lot more" as the market comes to grips with bubbles exacerbated by the Fed's zero interest rate policy.

Icahn, in a new video titled "Danger Ahead" that he produced himself, warns that major market upsets of the past could be seen again, perhaps even worse, as a result of interest rates that have been kept too low for too long.

"It's like giving somebody medicine and this medicine is being given and given and given and we don't know what's going to happen – you don't know how bad the end of this is going to be," Icahn said in the 15-minute video. "We do know when we did it a few years ago it caused a catastrophe, it caused '08, so where do you draw the line here?"

Low rates are one of five major worries Icahn outlines in the video, along with tax loopholes, financial engineering of earnings, balance sheet-weakening stock buybacks, and strains on the high-yield bond market.

But while Icahn argues the Fed should have hiked interest rates month ago, he admits that doing so now is harder, given China's weakness and concerns about other emerging markets.

Icahn told CNBC the Fed "may have backed itself into a corner."

It's just one reason why he thinks stocks, which have been correcting for several weeks now, could go down "a lot more," admitting he's more hedged than he's been in years.