Danny Moses, a veteran investor known for betting against mortgage-backed debt before the 2008 crash, has expressed concerns about the impact of federal spending cuts on the economy. In an interview with CNBC, Moses stated that the market is underestimating the negative effects of these cuts, which have been spearheaded by Tesla CEO Elon Musk.
Musk’s cost-cutting measures, including layoffs of over 60,000 employees across 17 agencies, could lead to a significant slowdown in corporate revenue growth and a hit to consumer confidence. Moses warned that the economy is already showing signs of strain, with fears of an economic slowdown stoked by President Trump’s protectionist trade policy.
Despite this, Moses remains bullish on gold and online gambling stocks, citing their insulation from tariffs and early adoption of artificial intelligence. His predictions come at a time when the S&P 500 has recovered some losses but still sits below its February all-time high.
Source: https://www.cnbc.com/2025/03/20/moses-of-the-big-short-says-market-underestimating-doges-negative-impact.html