Tesla CEO Elon Musk says US economy is in recession

Tesla CEO Elon Musk said the US economy is likely in recession. This statement is at odds with economists and available data.

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“It will probably be hard. I don’t know – a year, maybe 12-18 months, ”the billionaire predicted, speaking of problems in the American economy.

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He also advised businesses to keep an eye on spending and cash flow. Musk suggested that recessions aren’t necessarily bad, adding that he’s experienced several during his time at public companies.

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“What usually happens is that if you have a boom that lasts too long, you get a misallocation of capital — basically the money starts pouring in on fools,” he said.

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The billionaire believes that the rise in prices was “simply due to printing money.

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“The honest reason for inflation is that the government printed a million more money than it had. It’s not that, you know, super difficult,” said the entrepreneur.

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Recession fears have intensified recently as the Federal Reserve tightens monetary policy to help bring down inflation, which has reached its highest level since the early 1980s.