Tesla CEO and billionaire Elon Musk foresees an economic recession in the near future, saying it will be a “good thing.”
Musk shared his opinions via Twitter when another user asked him if he thinks there will still be a recession. Musk replied by saying “Recession actually a good thing…it has been raining money on fools for too long. Some bankruptcies need to happen.”
He also blamed all of the unnecessary Wuhan Coronavirus stay-at-home orders for making people lazy and not wanting to work.
“All the Covid stay-at-home stuff has tricked people into thinking that you don’t actually need to work hard. Rude awakening inbound!”
Musk seemed to also reference the multiple rounds of stimulus checks people received that made it simultaneously easy for people to just decide not to go into work.
Predicting the recession will last about 12 to 18 months, Musk said “companies that are inherently negative cash flow need to die, so that they stop consuming resources.”
Yes, but this is actually a good thing. It has been raining money on fools for too long. Some bankruptcies need to happen.
— Elon Musk (@elonmusk) May 27, 2022
Also, all the Covid stay-at-home stuff has tricked people into thinking that you don’t actually need to work hard. Rude awakening inbound!
Based on past experience, about 12 to 18 months. Companies that are inherently negative cash flow (ie value destroyers) need to die, so that they stop consuming resources.
— Elon Musk (@elonmusk) May 27, 2022
Musk’s comments came after asset manager BlackRock warned that the IRS could raise interest rates to offset inflation.
According to Fox News, BlackRock said the “Fed’s hawkish pivot has raised the risk that markets see rates staying in restrictive territory…if they hike interest rates too much, they risk triggering a recession. If they tighten not enough, the risk becomes runaway inflation.”