Tesla CEO Elon Musk believes the U.S. economy is approaching a recession but he explained why it is “actually a good thing.” Musk has estimated that the upcoming recession will last 12 to 18 months.
Elon Musk Talks About the U.S. Recession
Elon Musk (Spacex CEO) shared his thoughts about the U.S. Economy and the coming recession through a series on Twitter.
Responding to a question about whether “we’re approaching a recession,” he answered: “Yes.” However, Musk noted, “this is actually a good thing.”
The Tesla boss explained that “It has been raining money on fools for too long,” stressing that “some bankruptcies need to happen.” He elaborated: “All the Covid stay-at-home stuff has tricked people into thinking that you don’t actually need to work hard. Rude awakening inbound!”
His recession tweet followed a statement he made last week, stating that the U.S. economy is “probably” in a recession. He warned that things “will get worse,” and estimated that the recession could last 12 to 18 months.
“The honest reason for inflation is that the government printed a zillion more money than it had,” Musk further commented.
A rising number of investment banks are warning about the possibility of a recession. Goldman Sachs’ Senior Chairman, and ex-CEO Lloyd Blankfein, recently warned that we were heading toward a recession and advised people and companies to be prepared.
In addition, Blackrock, the world’s largest asset manager, cautioned in a research note this week that the Federal Reserve’s efforts to increase interest rates to offset record inflation may trigger a recession. “If they hike interest rates too much, they risk triggering a recession. The risk of runaway inflation is if they don’t tighten enough. It’s tough to see a perfect outcome,” Blackrock detailed.
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