New York
CNN Business
–
Even the wealthy are now worried about the economy.
Elon Musk and Jeff Bezos, two of the richest people on the face of the planet (who generally don’t agree on much of anything), are both indicating some nervousness about a looming recession.
Bezos commented earlier this week that it was time to “ditch the hatches,” in a tweet Which included a video of Goldman Sachs CEO saying there’s a good chance a recession is on the horizon.
Musk, for his part, was a bit more upbeat as he sought (unsuccessfully, ultimately) to allay Wall Street concerns about Tesla’s growth prospects. In a call with analysts on Wednesday evening, Musk took a confident tone, saying the company had “excellent” demand for the next quarter and factories were running at full speed.
But he admitted that demand was “a little bit tougher” and noted that Europe and China were experiencing “sort of stagnation”. Musk also warned that Tesla would not achieve its sales growth target.
Shares fell 7% in early trading Thursday, although Tesla reported close to recording profit in the third quarter. Analysts and investors are increasingly concerned about Tesla’s ability to maintain its growth in the face of logistical problems and rising inflation.
Musk and Bezos’ comments add to the line of strongmen who worry that the economy will take a turn for the worse. Earlier this month, JPMorgan Chase billionaire Jamie Dimon scared the entire stock market by saying a recession could hit the US in as little as six to nine months.
Even someone who is not a billionaire but still rich, Gwyneth Paltrow is losing sleep because of it.
“The economy is bad,” she told The Hollywood Reporter this week. “I’m just worried about next year and how bad the recession will be.”
Other celebrities are also weighing in. Last month, rapper Cardi B raucous about inflation and interest rates. “How do people live? I want to know.”
It’s a reasonable concern: Researchers recently estimated the probability of a global recession at just over 98%.
Originally published at San Jose News Bulletin
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