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Business

We are approaching a recession, but it is “actually a good thing” – Economy Bitcoin News




Tesla CEO Elon Musk believes the U.S. economy is nearing a recession, but he explained why it is “actually a good thing.” Musk has estimated that the coming recession will last for 12 to 18 months.

Elon Musk discusses US recession

Tesla and Spacex CEO Elon Musk shared their thoughts on the US economy and the coming recession in a series of tweets on Thursday.

In response to a question about “we are approaching a recession,”[ads1]; he replied: “Yes.” However, Musk remarked, “this is actually a good thing.”

The Tesla chief explained that “It has been raining money on fools for too long,” and stressed that “some bankruptcies must happen.” He elaborated: “All things that are at Covid’s home have tricked people into believing that you do not actually have to work hard. Rude awakening incoming!”

His recession tweet followed a statement he gave last week, saying the US economy “probably” is in a recession. He warned that things “will get worse” and estimated that the recession could last for 12 to 18 months.

“The honest reason for inflation is that the government printed a zillion more money than it had,” Musk further commented.

An increasing number of investment banks have warned of a recession. Goldman Sachs senior chairman and former CEO Lloyd Blankfein recently said that we are heading for a recession, and advised companies and individuals to prepare for it.

In addition, Blackrock, the world’s largest asset manager, warned in a research note this week that the Federal Reserve’s attempt 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 do not tighten enough, the risk becomes current inflation. It’s tough to see a perfect result, “said Blackrock in detail.

Tags in this story

Blackrock, BlackRock Recession, Elon Musk, Elon Musk Inflation, Elon Musk Predictions, Elon Musk Recession, Elon Musk Recession Prediction, Goldman Sachs, Goldman Sachs Recession, SpaceX Recession, Tesla Recession

Do you agree with Elon Musk that a recession is a good thing? Let us know in the comments section below.

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of economics and cryptography.

Photo credit: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or recommendation of products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is directly or indirectly liable for any damage or loss caused or alleged to have been caused by or in connection with the use of or reliance on the content, goods or services mentioned in this article.





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