Earlier this week, Elon Musk predicts that there will be a financial crisis in the coming year. He didn’t mention any specifics about the Great Recessions or anything like that, but he implies that we may not see one of these major economic downturns again.
Predicting macroeconomics is challenging, to say the least. My gut feel is maybe around spring or summer 2022, but not later than 2023.— Elon Musk (@elonmusk) December 30, 2021
Elon Musk made this comment under a tweet regarding global unicorn companies. The author posted a list of popular startups and asked how many will survive in 5 years. It’s hard to know how many companies will be able to survive the next recession, but there are still survivors of the 2008 financial crisis.
We can’t really make any predictions about this. But it’s worth noting that the Twitter sentiment seems to be positive over the last three days.
Elon Musk predicts and the internet going crazy about the next financial crisis
Doug Ramsey, chief investment officer for Leuthold Group, believes that “when the S&P 500 closed at a 52-week high, 334 companies using the New York Stock Exchange set new one-year lows.” People have been predicting that this is going to be a year-long winter, but there have been only four occurrences of this happening in history. All four happened in December 1999.
In short, the U.S. stock market is at a high point and there isn’t enough new money outside of it. U.S. stocks funds are concentrated in the pools of a few leading companies. A low valuation is just one result of financing becoming more difficult. Furthermore, the Fed being conservative means that the already tight liquidity situation is worsening.
Another Twitter user claims that the inflation level in the United States is very high. One of the most telling signs is that prices of goods in stores he frequents have been going up recently. Unless the fed raises interest rates and withdraws money fully, there will almost certainly be another recession.
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.— Chris Smithson (@CSmithson80) December 30, 2021
That bump in 2008 is nothing compared to the bump in 2020. pic.twitter.com/1ZkDE1kPTC
A chart of how much money an average person would need to work for in order to not increase the deficit.
The bump back in 2008 is nothing compared to the future upswing.