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Elon Musk says to let the recession come. Do you agree?

recession

Elon says to let the recession come. Do you agree?

I wrote this the other day about a friend who told me that a financial crisis may just be coming. Red Alert for Inflation it seems I told her that predictions will continue to happen and the truth is, one day it will come true. Just need to always remember to keep looking for opportunities before then because time is something once lost is lost forever. Then, I read this article about how Elon Musk wishes for the recession to come.

Article in theguardian.com Elon Musk has asked that the global recession which has been predicted should just come. This was his response to the question about the recession potential from a Twitter user. Musk said, “This is actually a good thing.” He continued, “It has been raining money on fools for too long. Some bankruptcies need to happen.” he continued, “all the Covid stay-at-home stuff has tricked people into thinking that you don’t actually need to work hard. Rude awakening inbound!” Do read the full article here. Lots of more details about how Tesla has benefited tremendously from loans during its early phase. Article in theguardian.com

If recession does come, can people buy cars?

Actually, this is a very good question. Tesla produces cars. If there’s a recession could people still afford to buy Tesla cars then? The answer may just be a yes. This is because the price of a Tesla meant that it’s not for the more ordinary people. More for the higher earning power people and frankly speaking, many of these people may just be okay in a recession. The ones who will not be okay would be the ones who does not have high earning power and when the recession comes, they will not be able to afford a new car, much less a Tesla.

I was there when 1998 financial crisis happened

By the way, I have no idea what will happen when the next recession comes. However, in 1998, I could still the effects from a 1997 ASEAN financial crisis. I give you an example. Many colleagues brought their lunch boxes and there was this one lady colleague who ate cream crackers for lunch every other day. At the time, RM2.50 per 400gm pack and this can last her one week. Today, the same 400gm cream cracker pack is RM4.50. I have not seen any colleagues doing that yet but rest assured, if a recession does happen, this cream cracker lunch may happen again. Perhaps I should also follow. Cream crackers with black coffee is amazing yeah.

I disagree with Elon Musk. I do not wish for a recession.

Maybe one major reason I disagree with him is because he can survive and most probably thrive in a recession because of his high networth and thus there would be lots of opportunities for high networth individuals during bad times. I disagree with him because many people will suffer and it’s not just the organisations. Many people will be unemployed and many may not be able to find another job quickly and easily. I would prefer all the overpriced and overvalued organisations to be valued back at their fundamentals instead. Deflate the potential for recession and not burst it.

Here are two must-read articles before the next recession

How prepared are you? 4 steps to prepare… It’s not when it happens. It’s not what we do at the time. It’s what we do now which will determine if we will survive or thrive when a recession indeed comes.

Strive to be a talent, not just an employee. When there are many people who could do our work, it’s easy for them to take over. When there are few people who could do our work, we become a talent and it’s harder for the organisation to find someone new to do the work. Are we categorised as among the ones who will find it easy to get the next employment if we needed to?

Happy anticipating if you believe what many are predicting. Just be prepared.

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Next suggested article:  True cost of a property is not when we are young

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Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of kopiandproperty.com He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. kopiandproperty.com is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.

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