Personally, I don't believe there is any question that we are in the midst of a recession. We might be going through it right now, but we don't have the statistics to back it up yet.
This month, the stock market entered bear market territory, but it did make a small recovery, but it appears to be on its way down again.
I don't need to remind you about the prices of everything and how high they are. I just went and filled up my wife's gas tank this morning and it took $55, and she almost had a quarter of a tank left! It's ridiculous.
But maybe a recession isn't a bad thing in the long run. According to Elon Musk, who happens to be the richest man in the world, it is a good thing.
Yes, but this is actually a good thing. It has been raining money on fools for too long. Some bankruptcies need to happen.
Also, all the Covid stay-at-home stuff has tricked people into thinking that you don’t actually need to work hard. Rude awakening inbound!
Yes, but this is actually a good thing. It has been raining money on fools for too long. Some bankruptcies need to happen.
Also, all the Covid stay-at-home stuff has tricked people into thinking that you don’t actually need to work hard. Rude awakening inbound!
— Elon Musk (@elonmusk) May 27, 2022
I'm not going to lie, this does sound like a good way to straighten some people out. One of the biggest reasons we have for all of the crime that we've had over the last few years is because of all of the free money that the government has been handing out. Maybe a recession is a good way to get that back down.
Elon also gave his estimation of how long he thinks this recession would last.
Based on past experience, about 12 to 18 months. Companies that are inherently negative cash flow (ie value destroyers) need to die, so that they stop consuming resources.
Based on past experience, about 12 to 18 months. Companies that are inherently negative cash flow (ie value destroyers) need to die, so that they stop consuming resources.
— Elon Musk (@elonmusk) May 27, 2022
Hopefully, the Fed doesn't decide to keep printing money to "help us" get through a recession like they've done in the past. That would only lead to more inflation and make us all poorer in the long run.