Elon Musk Explains Why America Is Entering A Horrific Financial Crisis: For the year 2022, Tesla and SpaceX CEO Elon Musk does not have the most optimistic outlook for the economy. And why not? He has faced situations like bankruptcy and failures, so as a business he knows when things will go wrong and what would be the right thing to do at that time.
In a tweet, the tech billionaire predicted that the global economy would be in recession within the next few years. But why would Musk say that? Because things seem to be fine. Is he mocking like he always does?
In a tweet, the tech billionaire predicted that the global economy would be in recession within the next few years. Musk has said that the world is going to see an economic crisis and a financial crisis. But he didn’t provide any more details along with the comment, no reason as to how he came to this conclusion.
During his reply, he answered a question from a tweet that asked, “When do you think the next recession is going to be?” To which Musk replied, “Predicting macroeconomics is challenging, to say the least. My gut feel is maybe around spring or summer 2022, but not later than 2023.” But why does Musk say that?
Well, an investment guru, Soros once proposed the concept of “reflexivity” of the financial market, which is: “As long as the market has expectations for the future, it will often meet those expectations.”
So, as a world-renowned entrepreneur, Musk’s remarks are sufficient to change expectations in the market so that this “reflexivity” becomes a reality. However, he is also not betting a lot of money on unicorns.
In earlier posts, Twitter user Christopher Mims summarized a list of the most valuable startups, or perhaps we should say, global unicorns in different sectors like artificial intelligence, retail, auto, and transportation, and asked, “there are 936 startups valued at more than $1 billion in the world today.
What do we think this chart looks like in, say, 5 years?” To which Musk replied: “If history is any guide, not many will make it past the next recession”. However, he did not elaborate on why he thinks this and whether there will be something like a Great Recession or if it will only be something “ordinary”.
Apparently, there was an opinion that the recession to which Musk is referring would begin with the sale of US stocks. As Doug Ramsey, chief investment officer at Leuthold Group, points out, “Last week, when the S