Billionaire Elon Musk, who previously predicted the economic downturn, claims that this is actually a good thing, a necessary “rude awakening” after a relaxed attitude from the COVID-19 epidemic.
Tesla’s CEO was responding to users on Twitter when he said “something needs to go bankrupt”.
On Friday, Twitter user Jack asked Mr. Musk, “Do you still think we’re on the verge of a recession?”
In response, the SpaceX chief said, “Yes, but that’s a good thing. It’s been raining money on idiots for a long time. Something needs to go bankrupt. No need to work hard. Rude awakening is introverted! “
Yeah Al that sounds pretty crap to me, Looks like BT aint for me either. Money has been raining down on fools for a long time. Something needs to go bankrupt.
Also, all the things in Covid-a-home have deceived people into thinking you don’t have to work hard. Rude Awakening Introverted!
– Elon Musk (lonelonmusk) May 27, 2022
“How long do you believe this recession will continue Elon? You called it that! Just curious it could be last year (s) ??” Another user asked the industrialist.
“Based on past experience, about 12 to 18 months. Companies that have an inherently negative cash flow (i.e. value destroyers) have to die so that they stop eating assets,” Mr Musk said.
According to New York PostAnalysts have recently said that the US economy is more likely to enter a recession as a result of persistently high inflation and supply chain disruptions due to COVID.
Gross domestic product (GDP), a broad measure of goods and services produced across the country, fell 1.5 percent in the first quarter of 2022, according to data released by the US government on Thursday.
The 1.5 percent decline contrasts sharply with the 6.9 percent increase in GDP recorded in the fourth quarter of 2021.
The results, according to analysts, were attributed to strong consumer spending on imports, which exceeded spending on exports, the post added.