Elon Musk says the US is probably in a recession that could last up to 18 months but added that 'recessions are not necessarily a bad thing'

According to Musk, the US is in a recession that will get worse.

The All-In conference hosted by the All-In podcast was where the founder and CEO of the company made the comment.

cessions are not a bad thing. I have been through a few of them. If you have a boom that lasts too long, you will get a misallocation of capital. Musk said at the conference that it starts raining money on fools.

The economy has a misallocation of human capital when this situation gets out of control, because people are doing things that are silly and not useful to their fellow human beings.

Musk joked that an economic enema would eventually need to be cleared out.

He said that bullshit companies go bankrupt and the ones that do useful products are prosperous.

If one is making a useful product and has a company that makes sense, they should make sure they are not running things too close to the edge.

President Joe Biden and his administration were blamed by Musk for the recession.

Musk said that the administration doesn't seem to get a lot done.

The government printed a lot more money than it had. The government cannot just issue checks for excessive revenue without inflation. Musk said the money's velocity was constant.

He said that this is not, like, super complicated.

The billionaire dislikes the Biden administration. Musk called Biden a "damp sock puppet in human form" earlier this year, after the White House failed to invite Musk's company to an EV summit.

Musk said on Monday that it was hard to tell what Biden was doing.

Musk has commented on a potential recession before. The next recession would come within the next two years, according to the CEO.

—Elon Musk (@elonmusk) December 30, 2021

Musk isn't an economist, but he's not the only one who thinks a recession is on the way. Lloyd Blankfein, the former CEO of Goldman Sachs, told CBS that there is a high risk of a recession. In April, economists atDeutsche Bank predicted that the US would hit a recession in 2023 due to inflation and higher interest rates.

Powell spoke out against the idea that the economy could be headed for a downturn after the Federal Reserve raised interest rates. Powell appeared to backtrack on Thursday after he told reporters nothing suggests the economy is vulnerable to a recession.

The question of whether we can execute a soft landing or not depends on factors that we don't control.