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Elon Musk: ‘We’re headed for a recession, but that’s a good thing’

Tesla CEO Elon Musk believes the US economy is headed for a recession but he explains why it’s “really a good thing.”

Musk has estimated that the upcoming recession will last 12 to 18 months.

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

To a question about whether “we’re headed for a recession,” he replied: “Yes.” Still, Musk noted, “this is actually a good thing.”

The Tesla boss insisted that “some sort of bankruptcy needs to happen.

He further explained: “Staying at home because of Covid but still receiving support has deceived people that there is no need to work hard. Wake up!

Last week, Elon said that the US economy “may be” in a recession. He warned that things “will get worse” and estimated that the recession could last 12 to 18 months.

Musk further commented: “The reason for the inflation is that the government printed a million dollars more than they had.”

More and more investment banks are warning of a recession. Goldman Sachs senior chairman and former CEO Lloyd Blankfein recently said they are also headed for a recession, advising companies and individuals to prepare for the event.

Additionally, Blackrock, the world’s largest asset manager, warned in a study that an attempt by the Federal Reserve to raise interest rates to offset record inflation could trigger a recession.

“If they raise interest rates too much, there is a risk of a recession. But if they do not tighten enough, the risk of inflation increases. It’s hard to see a perfect result.”

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