Billionaire Elon Musk said it “needs to go bankrupt” as he predicted there would be a short recession in the US that would eventually be a good thing.

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The Tesla CEO was responding to a question on Twitter from a user who asked him whether he still believed there would be a recession following comments made earlier this month.

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“Yeah, but that’s actually a good thing. Money has been raining on fools for too long. Some need to go bankrupt,” Musk wrote,

He also appeared to take aim at people who are working from home due to the pandemic, saying: “Plus, all the covid stay-at-home stuff has tricked people into thinking you have to work really hard. No need to work hard. Rude awakening inward!”

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Another Twitter user asked Musk how long he believed a potential recession would last.

“Based on past experience, about 12 to 18 months,” Musk replied. “Companies that are inherently negative cash flow (i.e. value destroyers) need to die, so that they stop consuming resources.”

This is not the first time in recent weeks that Musk has predicted a possible recession and argued it could be a positive. Speaking at the All-In Summit in Miami Beach on May 16, Musk said the US was “probably” in recession.

“A recession isn’t necessarily a bad thing,” Musk said at the time. “I’ve been through a few of them. And what happens if you have a boom that lasts too long, you get a wrong allocation of capital. It basically starts raining money on fools.” gives.”

There are some concerns about a recession as the Federal Reserve raises interest rates in an effort to tackle inflation, which is at a nearly 40-year high.

German international investment bank Deutsche Bank warned last month that the US was headed for “a major recession”, citing the Fed’s fight against inflation, while BlackRock, the world’s biggest asset manager, said this week that if If the Fed raises interest rates too much, they “run the risk of triggering a recession.”

However, Bloomberg’s monthly survey of economists in May found that the US was only 30 percent likely to enter a recession this year. This is a marginal increase from 27.5 per cent in April.

According to a CNN report last month, UBS and Goldman Sachs have said they do not believe a recession is inevitable.

Musk, the world’s richest man, is set to acquire Twitter for $44 billion. He has recently clashed with the social media company’s CEO over the issue of fake accounts, with some suggesting Musk is operating for a low price.