Tesla CEO Elon Musk believes the US economy is approaching a recession, but explained why it is “actually a good thing.” Musk has predicted that the upcoming recession will last 12 to 18 months.
Elon Musk discusses the US recession
Tesla and SpaceX CEO Elon Musk shared his thoughts on the US economy and the upcoming recession in a series of tweets on Thursday.
In response to a question whether “we are approaching a recession,” he replied: “Yes.” However, Musk said, “it’s actually a good thing.”
The Tesla boss explained that “money has been raining on fools for a very long time,” emphasizing that “something needs to go bankrupt.” He elaborated: “All the covid stay-at-home stuff has tricked people into thinking you don’t need to work really hard. Rude awakening within!”
His recession tweet followed a statement he made last week, which said the US economy is “probably” in recession. He warned that things would “get worse,” and estimated the recession could last 12 to 18 months.
Musk further commented, “The honest reason for inflation is that the government printed a billion more money than it did.”
A growing number of investment banks have warned of a recession. Lloyd Blankfein, senior president and former CEO of Goldman Sachs, recently said that we are headed for a recession, advising companies and individuals to prepare for it.
In addition, BlackRock, the world’s largest asset manager, cautioned in a research note this week that the Federal Reserve’s efforts to raise interest rates to offset record inflation could trigger a recession. “If they raise interest rates too much, they risk triggering a recession. If they don’t tighten enough, the risk becomes runaway inflation. It’s hard to see a true result,” BlackRock elaborated. Told.
Do you agree with Elon Musk that a recession is a good thing? Let us know in the comments section below.
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