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Markets have not yet affected the effects of mass cuts In government expenditures, investor ‘The Big Short’ said Danny Moses said. be that be property The government’s efficiency is jeopardized by special contractors, small businesses and the labor market. “It’s not so simple that it’s fair, ‘We think there’s fraud, let’s waste, let’s reduce expenses,” he said.
Danny Moses investor Danny Moses, known for his oriental betting on the backing of the housing contract before the collapse of the 2008 stock market, has warned of other red-economic flags.
The founder of the book “Movie” The Big Short has not yet taken into account the negative economic effects of mass cuts on government jobs by the Elon Musk government’s efficiency ministry.
“I think we are underestimating the economy of the cuts we are doing in the federal government, and what may mean the effects of the economy,” Moses said. CNBC Interview with “Power Lunch” on Thursday. “We are hurting the income aspect of the equation.”
“I think we are very optimistic (according to) how he plays,” he said.
The administration of Donald Trump has sacked more than 24,000 federal workers, according to court documents, most of which are expected to find the private sector work because of their expertise. Other 75,000 employees have received the opportunity to resign, allowing them to receive salaries and aid until September. The Dodge receipt wall claims that it has left $115 billion in government expenditures—although the truth of the savings that is allegedly under fire.
The US administration’s tax whip has been more uncertain in the markets, which has led companies to evaluate their plans. Meanwhile, federal reserve president Jerome Powell has not used the rate without touching while the policy is playing.
Moses said investors have already begun to see consumer confidence in consumers—which saw the highest decline in four years last month and will continue to listen to similar trends in future income relationships. He said these slowdowns have not yet been marketed.
“It’s not so simple that it’s fair, ‘We think there is fraud, let’s waste, let’s reduce expenses,” Moses said. property. “And it has nothing to do with federal workers, and it is not only related to the expenditures of these programs. It is related to contracts with the private sector.”
Moses said the signs that were weak in economic weakness could be seen in small businesses and “special contractors who are currently being forced to decide on their work.
The government has spent about $759 billion on fiscal year 2023, about $33 billion compared to the previous year, according to the US government accountability office, about $ 171.5 billion goes to small businesses. Mask companies themselves receive at least $20 billion in government contracts.
Dodge’s mass cuts have already begun to threaten major contracts. Julie Spelman Sweet, CEO of Acsenter, told investors Thursday that 8 percent of the world’s revenue had lost US government contracts as part of the Doge review. The Companion’s share fell 7.3 percent after the announcement.
The elimination of both jobs and federal contracts creates what Moses called “a non-profit cycle. While more than federal workers who have been dismissed from their jobs are looking for private sector work, they may find less opportunities due to a decline in revenue routes in government contracts.
Indeed, outside the government contracts, the economy must also confront tens of thousands of federal workers who go to the labor market. Many of the former government employees face an environment that is stable, but there are different wild horizons based on the skills of the unemployed newly unemployed, Korean Economist, an economist for the truth of its establishment. property.
“Can the labor market absorb these workers?” Stahl said. “We are not quite sure that he can.
There are currently many health care work – Good news for about 16% of the federal labor force in the fields of health, according to the Pew Research Center, but many other white collar work, especially in the field of technology and data science are few. Stahl said that because many federal employees who have been dismissed are being educated, they may seek a traditional worker’s traditional worker that does not exist.
One of the reasons why markets may not have affected the effects of shootings are the delay of government data. While the Labor Statistics Office announced about 10,000 fewer jobs in the federal government in February, the duration of the survey was likely to end before many shootings were carried out.
“The staff seem to be really frozen, because uncertainty about what happens around the taxes, what happens with the provision of jobs, migration, then obviously, what happens with these federal workers,” Stahl said. “There is very uncertainty that he is playing right now that we couldn’t numerous.”
If a essential number of federal workers fail to find new jobs, expenditures are likely to slow down, leading to a US economy accounting for about 70 percent of consumer expenditures.
“The economy is made up of people and their wallets in an undeniable manner,” he said. “The distortion of our expenses also excites growth, no matter how much you deserve the cause of the damage.
This story was initially mentioned in Fortune.com
