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Responding to former Director of NEC to the Obama Government, Prof. Lawrence H. Summers’ tweet on an impending slowdown, Elon Musk offered an even gloomier outlook. Summers wrote that if the Fed does what’s necessary to contain inflation, it will likely effectuate a slowdown. He gave the odds of it happening at a 70% probability within the next 12 months. However, the Tesla and Twitter boss stated that a mild recession is already here. He remarked

‘The cemetery is piling up,’

See Also: World’s Richest Man Elon Musk Predicts The Year Until Which Recession Will Last

Citing examples of the Silicon Valley Bank (SVB) and Credit Suisse collapses. The SVB crisis in March 2023 marked America’s third largest bank failure in its history. Besides rocking the boat of many startups (including Indian ones), and businesses, ordinary folks lost their lifelong savings in the SVB collapse.Sharon Stone was in tears during a cancer charity event, lamenting how the actress lost half of her fortune.

See Also: Silicon Valley Bank Explained: How Crypto Is Being Affected.

Meanwhile, Credit Suisse, the second largest Swiss bank, collapsed in mid-March 2023. However, its rival, UBS Group AG, bought the Swiss bank to prevent a further crisis. In the wake of the SVB, Credit Suisse, and Signature Bank crises, Zerodha’s Nithin Kamath cautioned that every business will be exposed.

Looks like it’s about time, most businesses across the scale and spectrum assess and audit their prospects in the long run. Musk writes that if the fed’s rate hikes even further, it

‘Will trigger a severe recession.’

Fed data has too much latency. Mild recession is already here.

It’s not like just the canary in the coal mine (SVB) died, one of the staunchest miners (Credit Suisse) died too & the cemetery is filling up fast!

Further rate hikes will trigger severe recession. Mark my words.

— Elon Musk (@elonmusk) April 30, 2023

Musk further says that between Twitter, Tesla, and Starlink, he has more real-time global economic data than anyone ever to back up his claim.

Between, Tesla, Starlink & Twitter, I may have more real-time global economic data in one head than anyone ever

— Elon Musk (@elonmusk) April 30, 2023

See Also: 2023 Will Be The Year Of Recession; IMF Warns A Third Of The World Will Be Hit Hard

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