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.
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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