Elon Musk: US Economy Is Probably in Recession That Could Last 18 Months

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Elon Musk: US Economy Is Probably in Recession That Could Last 18 Months
Elon Musk: US Economy Is Probably in Recession That Could Last 18 Months

Elon Musk, CEO of Tesla and SpaceX, discussed the US economy on the All-In podcast, which was released on Monday.

Musk commented on whether the US economy is in a recession, saying:

We are most likely in a recession that will worsen, but these things will pass and there will be boom times again… It’ll probably be difficult going for a year, maybe 12-18 months.

He went on to say that a correction should take between 12 and 18 months. Fears of a recession have recently increased as the Federal Reserve tightens monetary policy to help cool inflation.

Musk explained that, in his opinion, recessions aren’t always bad, emphasizing that he’s been through a few of them while working for public companies. “What tends to happen is that if you have a boom that lasts too long, you get misallocation of capital — it basically starts raining money on fools,” he explained.

Noting that rising prices were caused by money printing, Tesla CEO said:

The true cause of inflation is that the government printed a trillion times more money than it had… This isn’t anything out of the ordinary.

The Tesla executive is currently involved in takeover bid for Twitter Inc. 
He made $44 billion offer to the social media behemoth, which Twitter accepted. 
However, the transaction has been put on hold.

 

Musk has also hinted that he may seek lower price for Twitter, claiming that there are at least four times as many fake accounts as the company claims. 
“You can’t pay the same price for something that is much worse than they claimed,” he reasoned.