Elon Musk Predicts How Long He Thinks A Recession Could Last In America

(RoyalPatriot.com )- Elon Musk, CEO of Tesla, who has previously predicted an economic recession and who has gained even more notoriety as a result of his purchase of Twitter, recently stated that the impending recession is “actually a good thing,” a necessary “rude awakening” after a complacent attitude brought on by the COVID-19 pandemic.

Musk also stated that he has previously predicted an economic recession.

On Twitter, a follower of Musk’s asked if he still thought that we’re nearing a recession?”

The Tesla CEO answered the question by saying yes, and that this is actually a positive thing.

“It has been raining money on fools for too long. Some bankruptcies need to happen.” – Musk.

He continued by saying that all the COVID stay-at-home stuff has tricked people into thinking that you don’t actually need to work hard, referring to the growing number of workers who worked from home during and after the pandemic. He could have possibly been referencing the carefree attitude resulting from checks from COVID-19 relief bills.

“Rude awakening incoming!” he tweeted.

The three phases of COVID-19 relief provided financial assistance to both people and businesses in the form of stimulus payments.

Another person on Twitter asked how much longer the recession was expected to persist.

Musk said that based on what we’ve seen in the past, around 12 to 18 months. He said it is necessary for companies that are essentially negative cash flow (also known as value destroyers) to perish for there to be a cessation in the consumption of resources.
This week, the largest wealth manager in the world, BlackRock, issued a warning that the Federal Reserve’s plan to raise interest rates to combat record inflation may cause the economy to enter a recession.

According to a research report published by BlackRock, the Fed’s hawkish tilt has heightened the possibility that markets anticipate rates continuing in the restrictive territory.

The report stated that the downward trend seen in 2018 is not a catalyst for a resurgence. They risk a recession if they raise interest rates. If they don’t tighten, inflation will become out of control.

The future seems dismal.