Tesla CEO, who is a fan of the idea of economic growth, stating that companies that have been “value destroyers” need to stop their existence
Tesla CEO Elon Musk who has received more attention since acquiring Twitter and also has predicted economic recessions, stated that the imminent economic recession could be “actually a good thing,” an important “rude awakening” after a negative attitude towards covid-19.
One Twitter user addressed Musk, “Do you still think we’re approaching a recession?”
“Yes, but this is actually a good thing,” the Tesla CEO said. “It has been raining money on fools for too long. Some bankruptcies need to happen.”
“Also, all the Covid stay-at-home stuff has tricked people into thinking that you don’t actually need to work hard,” explained the doctor with reference to the rising number of people working from home during and following the outbreak. It could also be as a result of the relaxation that has taken place after the examination of the COVID-19 relief bills. “Rude awakening inbound!”
“Based on past experience, about 12 to 18 months,” Musk stated. “Companies that are inherently negative cash flow (ie value destroyers) need to die, so that they stop consuming resources.”
BlackRock the world’s biggest asset manager has warned this week that Fed’s move to hike interest rates to fight record inflation rate could lead to a recession..
“The Fed’s hawkish pivot has raised the risk that markets see rates staying in restrictive territory,” BlackRock stated in a note of analysis. “The year-to-date selloff partly reflects this, yet we see no clear catalyst for a rebound. If they hike interest rates too much, they risk triggering a recession. If they tighten not enough, the risk becomes runaway inflation. It’s tough to see a perfect outcome.”