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1 hour ago, Tofu said:

time to load now ? no chance to dip more I guess.

Bottom not yet i feel but nobody knows. If you like the price, load it in small quantities every dip you like

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16 minutes ago, Raja_Returns said:

e trap ayena no fikar kaka

stock market ki gummadi kaya kottesa

it's time to hunt new pittalu in office

kotha saruku aa raji

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20 minutes ago, Raja_Returns said:

Avv bro north nundi kotha mall vachindi

Letha pindhalu chudali ame avuddo

2 Tesla stocks fekho..eguru Kuntu vastaru

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Elon Musk Explains the Benefits of Recession. Don’t Forget the Costs.

 

The Tesla TSLA +7.43%  (ticker: TSLA) CEO tweeted out Thursday night that a lengthy global recession was possible, but explained that wasn’t all bad.

Musk thinks a global recession, likely resulting from the mix of rising inflation and interest rates, could last more than a year. A downturn that long, however, would kill off companies that don’t generate positive cash flow and consume resources, according to the CEO.

In addition to managing Tesla, he runs SpaceX, Neuralink, and The Boring Company. He might add Twitter (TWTR), where he has more than 95 million followers, to his list of businesses.

Tesla didn’t respond to a request for comment about Musk’s feelings about recessions or what Tesla would do if his scenario played out.

It isn’t the first time in recent history that Musk has offered some economic thoughts. He talked about the benefits of robotic labor on the overall economy when introducing Tesla’s humanoid robot project Optimus.

Better reallocation of capital is one potential benefit of recession. Musk isn’t the first person to suggest that. Andrew Mellon served as secretary of the Treasury under three U.S. presidents—Harding, Coolidge, and Hoover—and he said something similar around the start of the 1930s.

“Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate. Purge the rottenness out of the system. High costs of living and high living will come down [and] enterprising people will pick up the wrecks from less competent people,” is the advice Hoover attributed to Mellon in his memoirs.

Capital certainly gets wasted in boom times. Everyone has a story or memory of a business that just doesn’t seem to make a lot of sense. In the bull market of recent years, many start-ups that merged with special-purpose acquisition companies have struggled to hit their original revenue projections. That could be a sign their business models weren’t as sound as hoped.

Still, recessions do more than reset the capital-allocation function in an economy. They are painful, with falling stock prices and rising unemployment. Mellon’s comments, in fact, were made around the start of the Great Depression. They haven’t aged well.

The Depression, of course, followed the Roaring 20s. By late in that decade, capital was being given to the early 20th century equivalent of shaky start-ups.

The economic downturn that followed the 1920s was brutal. Unemployment rose from about 3% in 1929 to almost 24% in 1932.

That level of pain from any economic downturn is rare. Regulators get part of the blame for making the downturn following the 1920s worse than it had to be. “Regarding the Great Depression …we did it. We’re very sorry [and] we won’t do it again,” said former Federal Reserve chair Ben Bernanke in 2002 at a party for Nobel Prize-winning economist Milton Friedman’s 90th birthday.

Bernanke’s point was the Fed could have reacted with more accommodative policy—cutting interest rates and helping debtors pay their bills—to help ease the downturn.

Maybe the Great Depression didn’t have to be so great, but it’s a risky idea to suggest a downturn’s benefits will outweigh the costs. Business upturns and downturns both come with their list of nasty unforeseen outcomes.

Tesla shares, along with stocks of other auto makers, are acting like a recession is on the way. Tesla, General Motors GM +4.00%  (GM) and Ford Motor F +3.23%  (F) shares are down about 35% year to date, on average, worse than the 15% and 10%, comparable, respective declines of the S&P 500SPX +1.99%  and Dow Jones Industrial AverageDJIA +1.61% .

Cars are big purchases, usually financed, and investors typically sell car stocks entering an economic downturn. Investors are worried about the future. That is the biggest reason for the 2022 decline in those stocks. All three companies are making good money right now.

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10 hours ago, Manishican said:

Asalu ee russia oil ban valla Russia ki no loss. Some one else is buying their oil. The biggest losers are common people all around the world

mainly european countries

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