Danny Moses warns Musk's actions could harm economy

Danny Moses, known for predicting the 2008 financial crash, is raising concerns about the impact of recent federal spending cuts led by Elon Musk. Moses warns that these cuts may have serious consequences for the economy. He believes that the market is underestimating the potential fallout from reduced government expenditures. In an interview with CNBC, Moses explained that cuts are affecting critical services and state revenues. He pointed out that federal spending usually supports the economy by maintaining infrastructure and funding various projects. Moses expressed that cutting these expenses could harm both public workers and private contractors who rely on government funding. Additionally, he noted the uncertainty created by Trump's policies on tariffs, which could further slow down economic growth. Moses anticipates that upcoming first quarter earnings reports will reveal signs of a slowing economy and decreased consumer confidence. Overall, Moses urges caution and suggests that many may be too optimistic about the current economic situation. He emphasizes the potential risks posed by significant changes in federal spending led by figures like Musk.