America Is Entering A Horrific Financial Crisis!” Elon Musk Explains Why AND HOW

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&P 500 reached a 52-week high, 334 companies that were listed on the New York Stock Exchange reached an all-time low, more than double the number of companies that achieved a one-year high during the same period.

That has only happened three other times in history – all of them in December 1999.” It can be stated categorically that the stock market in the United States is at an all-time high. However, there are not enough new funds outside of the stock market.

Many of the U.S. stock funds are pooled into the portfolios of a few leading companies. Because of this, the valuations of other companies are at a low level. To put it another way, financing has become a lot more difficult. As a matter of fact, the monetary policy of the Federal Reserve tends to be conservative.

This simply means that the situation in regard to liquidity is becoming increasingly tight. In addition to this, another Twitter user believes that the inflation rate in the United States has reached historical highs.

He has observed that the prices of goods in retail stores that he has observed have risen in the past six months, which is an obvious indication. If there will be a financial crisis in the next stage of the economic recovery, depending upon the Fed’s ability to effectively withdraw from the quantitative easing monetary policy.

The tweet read, “This is a chart of how much money, per hour, a working-age-population (WAP) person has to pay in taxes to keep the Federal Budget funded without increasing the deficit. That bump in 2008 is nothing compared to the bump in 2020.”

There is no doubt that these explanations are all logical. So let’s see what happens in the global financial market in the next few months and where it goes from there. Elon Musk responded to Michael Burry, the investor who brought about the “Big Short”, calling him a “broken clock.”

This statement came after Burry who is famous for predicting the 2008 financial crisis, called out Musk and Tesla, and said there is more speculation in the market today than there was during the 1920s. Burry has deleted his Twitter account, but not for the first time.

He has followed a pattern of reactivating his profile to issue dire warnings about financial markets before shutting it down again. The Scion Asset Management chief has a long history of calling Tesla a scam since its introduction, but he stepped up his criticisms in recent weeks after Musk started selling large amounts of Tesla stock.

He stated that Musk was just trying to profit from the high stock price and suggested that Tesla may be receiving taxpayer-funded subsidies. In response to his heavy shooting, Musk responded with a simple tweet: “Burry is a broken clock.” The man knows how to deal with things without getting high.

Anyways, Musk’s tweet made it clear that he believes Burry’s views of the market are stuck in the past. The statement was likely in reference to Burry’s history of dire warnings about the current state of the stock market as well as about certain companies such as Tesla.

Although both the equities market and the electric vehicle company have boomed over the past year and a half, despite the arguments of the Scion CEO that Tesla’s stock price is a sign of a massive market bubble and that stocks may crash significantly.

Before deleting his Twitter account, Burry posted a stock chart of Tesla. The chart has highlighted the fact that Musk had said the price was “too high” at about $180 when the stock is now worth $1,013. Burry said, “Just think about it.”

Also, he believes that Musk is trying to take advantage of the price rise by selling Tesla shares to capitalize on the price, after the tech entrepreneur started to dump large amounts of shares, mainly to cover tax obligations.

Recently, Burry tweeted Musk to suggest that Tesla had grown so big in part because of “massive government and electricity subsidies on the backs of taxpayers who don’t own your cars.” Although Burry has criticized Tesla in the past, he sold his bet against the electric-car company in the third quarter as he slashed his portfolio in order to improve his return on investment.

He shot to fame after he bet a billion dollars right before the financial crisis that the U.S. housing market would collapse, a bet that was fictionalized in the Michael Lewis book “The Big Short.” In the 2015 film adaptation of the Scion story, Christian Bale played the boss of Scion, who is also known for his irreverent attitude toward traditional finance and passion for heavy metal music.

According to new filings, Musk had sold $930 million more of Tesla stock, taking his total sales in his recent round of selling to $7.8 billion, which is a significant amount of money. Speaking of sales, recently, Elon Musk has just given away $5.7 billion worth of Tesla stock to charity.

Though we do not know the specifics of Musk’s donations, we do know that he is passionate about results and doing what it takes to solve problems. In other words, the man is not a follower of politically correct woke paths that go nowhere.

It is because the stakes are so high that Musk knows about the pervasive problem of homelessness that we are facing on our streets today. The so-called elected leaders in our country speak endlessly about the homeless problem, constantly begging for more funds, and yet the problem only worsens.

Our leaders repeat this circular pattern year after year, but the problem does not go away. On the other hand, American voters have demonstrated a total failure to remove leaders who cannot or will not solve our problems. Therefore, we need a new approach to solving the problem.

Consider the suffering that is being inflicted on the people of America, and the vast potential of the human race is lost. Imagine all of the crime, disease, and widespread environmental destruction that is taking place.

So, let’s not waste our time talking empty politics, let’s begin to help our homeless brothers and sisters get back on their feet. Anyways, what do you guys think about this? Tell us in the comments.

—————————-

Thanks for reading till the end. Comment what’s your opinion about this information “America Is Entering A Horrific Financial Crisis!” Elon Musk Explains Why AND HOW“.

Read More:

Information Souce: Elon Musk Live

24 thoughts on “America Is Entering A Horrific Financial Crisis!” Elon Musk Explains Why AND HOW”

  1. Elon, I have an insight in to Solar Panel de-icing, dirt and snow removal fully automated and would like to talk with you about it. This would be a grand slam in the green markets for I am green here at our tv studio and will only go green in any property I am involved. I think smaller communal distribution and not herd the cattle into the corral and lets plan this out for independence, isolation, maintenance and get the heal away from all the big EGO power freaks whether gas and Oil or Green. Have a Super Weekend! You are my modern Day Hero and Mentor. Jerry

    Reply
  2. Elon is a man of integrity and has a love for America and the people. He is up front and honest, he is intelligent, he knows this administration is out to destroy this country financially and make us a Communist Nation. I pray he can help defeat this administration and wake up the people. God bless you Elon. Save us from distruction of the communist Democratic Party

    Reply
  3. Telesa ev car sales in the future or other products are not just US, its where influence of twitter takes them. Some are Masters of globalizism exploration! Earth is Mars, just look up from your own backyard.

    Reply
  4. AMEN! Elon is the most lovable of all billioner s and I El laureates that I had encountered. But he looks for love in all the wrong places.

    Reply
    • The poor will always be among us. A small segment of the population will always squander their assets and remain poor. No heart felt articles will change that.

      Reply
  5. A recessão é uma realidade,vai acontecer mais cedo ou mais tarde,tudo isso por causa do poder. Esse dinheiro que gastão em guerra deveriam usar para dar de comer aos milhares de pessoas ao redor do mundo q todos os dias morrerem por falta de comida e água em muitas partes. Agira eu gostaria de pegar numa parte desse dinheiro para comprar uma casa decente para mim e minha família,assim como com todo o gosto eu iria fazer missões. Pense nisso Elon

    Reply
    • Elon is a great engineer,although he lacks ability to connect his visions in acihetent system analytical way or gestalt

      He still carriers a lot of baggage if his growing up. Freud would have a field day with this genius problem som er who is a wirkohokic to avoid sadness

      Reply
  6. Thank you again. The fact that American politicians have and continue to make billions by not doing what is good for the American people, has saddened so many hearts. Thank you for saying it and believing that there is a way to continue to help the people. You bring hope.

    Reply
    • Elon is a great problems solver.

      But He may be wrong with this prediction. As for homeless 2/3 if it is linked to drug and alcohol abuse.

      Reply
    • AMEN! Elon is the most lovable of all billioner s and I El laureates that I had encountered. But he looks for love in all the wrong places.

      Reply
  7. BURRY IS AN IDIOT OR GOVERNMENT ENTITY..
    ANYTHING “ELECTRIC IS GOING UP BECAUSE RECENT POLITICS AND THE EXPECTATIONS OF BIDENS LEGISLATION/AGENDA…

    Reply
  8. If someone ask you, would you invest in this rock? You would say no. But if the person said, would you invest in this pet rock? the person said yes. It’s all in the way you look at it. Now you may ask yourself, what does this have to do with the article? Use your imagination…

    Reply
  9. My Dear sir
    Absolutely 💯 present correct
    and Mind-blowing going Best new way
    For help Homeless Brother & Sister help & support for better and happy life for (Elon Musk )
    happyGenerationn
    Best of luck and best wishes
    For your dreams
    🎉💯🍓❤️
    keep 🥰 life time

    Reply

Leave a Comment