We Are Close To Recession But It’s ‘Actually A Good Thing’ – Bitcoin News Economics

Tesla CEO Elon Musk believes the US economy is nearing a recession, but explained why it is “a good thing, actually”. Musk estimated that the next recession would last 12 to 18 months.

Elon Musk discusses the economic recession in the United States

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

Asked if we were “close to stagnation,” he replied, “Yes.” However, Musk noted, “That’s actually a good thing.”

“It’s been raining money on fools for too long,” the Tesla boss explained, emphasizing that “some bankruptcies have to happen.” He explained, “All the things that Covid needs in the house have fooled people into thinking you don’t really need to work hard. Rude awakening inside!”

His stagnation tweet followed a statement he made last week, Mentionsed The US economy is “probably” in a recession. He warned that things were “going to get worse,” and estimated that the recession could last 12 to 18 months.

“The honest reason for inflation is that the government printed $1 billion more than it had,” Musk commented.

A growing number of investment banks have warned of a recession. Recently, Goldman Sachs Chairman and CEO Lloyd Blankfein He said We are heading into a recession and advise businesses 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 efforts to raise interest rates to offset record inflation could trigger a recession. If they raise interest rates too much, they risk causing a recession. If not tightened enough, the risk becomes runaway inflation. It’s hard to see a perfect result,” BlackRock explained.

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

Kevin Helms

Kevin, an Austrian economics student, found bitcoin in 2011 and has been a missionary ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.