Tesla CEO Elon Musk has warned of a possible economic crisis, pointing to "lots of current year similarities to 1929" in a series of tweets on Tuesday. His comments come after Silicon Valley Bank, Signature Bank, and Silvergate Capital all collapsed last week, sparking a wave of anxieties among investors who fear that a financial meltdown could be on the horizon.
"Lot of current year similarities to 1929," Elon Musk tweeted in response to Ark Invest CIO Cathie Wood.
Wood had previously noted in her thread that the increased popularity of digital assets such as Bitcoin and Ethereum had caused deposit levels in banks to drop for the first time since the 1920s.
This adds further weight to growing fears that another financial crisis may be looming, similar to the 1929 Wall Street crash. However, experts such as Jefferies CEO Rich Handler are confident that the problems are “finite and idiosyncratic” and will not result in “endless contagion” as long as the issues are dealt with “proactively and aggressively in a smart, immediate and targeted manner”.
Key Points
- Tesla CEO Elon Musk compared Silicon Valley Bank’s collapse to the 1920s Wall Street crash.
- He was responding to Ark Invest CIO Cathie Wood’s assertions that the popularity of cryptocurrencies had lowered bank deposit levels.
- Silicon Valley Bank, Signature Bank, and Silvergate Capital all collapsed last week.
- Experts such as Jefferies CEO Rich Handler believe that the problems are “finite and idiosyncratic” and should not lead to an economic crisis.
TL;DR
Tesla CEO Elon Musk has warned that the collapse of Silicon Valley Bank might signal the onset of an economic crisis, similar to the 1929 Wall Street crash. Despite this, experts are confident that this is not the case as long as the issues are dealt with "proactively and aggressively”.