Recently, during an interview with Fox News’ Tucker Carlson, Tesla CEO Elon Musk expressed his concern regarding the global banking system, stating that it is in “serious danger”. Musk noted that the collapse of Silicon Valley Bank, which occurred due to a $1.8 billion loss on asset sales, was not a small incident, but rather a major warning sign. He further added that the mining canaries are dying and so this is alarmingly worse. But, as Tucker Carlson perplexed with the question of what the Federal Government, will get in return for backing up deposits at failed banks, Musk had no answer.
Elon Musk issues yet another warning to the world https://t.co/vWclkEoecJ
— Daily Caller (@DailyCaller) April 19, 2023
Musk also pointed out that the commercial real estate market is bound to experience significant turbulence in the coming months. The CEO argued that a decline in office spaces due to the trend of remote work could cause many real estate portfolios to decrease in value. He expressed that this is not just another regular shoe-drop but like a heavy anvil which will undoubtedly fall on the real estate industry.
Adding more to his predictions, Musk expressed his apprehension about the potential downfall of house prices due to rises in interest rates by the Federal Reserve. He further explained that such an increase in interest rates could result in unaffordable houses and eventually lead the buyers to give up on the idea of buying a home. This would subsequently result in a significant decrease in house prices due to the lowered demand.
Musk’s comments rightly sketch the precarious financial condition of the banking system as a whole. It has been in decline for a while now, and Musk’s mirroring observation echoes this sentiment. It’s time to bring back sound fiscal policies to the banking sector and Real Estate industry.