TL;DR

Government efficiency cuts, championed as saving billions, backfired, causing job losses and economic instability, mirroring the 2008 crisis’s false sense of security.

Story

John, a retired teacher, believed in efficient government. So when the Department of Government Efficiency (DOGE), led by Elon Musk, promised to slash wasteful spending, John applauded. News outlets touted billions in savings. It felt like a win-win.

Then John’s pension checks started shrinking. Turns out, DOGE’s “efficiency” meant firing thousands of government workers—including the staff who processed John’s payments. The promised $115 billion in savings? Inflated fifteen-fold.

Like a house of cards built on hype, the actual verifiable cuts amounted to a mere $7.7 billion. The real damage? Uncertainty. Chaos. A ripple effect crippling the very economy DOGE claimed to be saving. John’s story echoes countless others—victims of a narrative spun to resemble progress, yet ultimately leading to financial ruin for many.

‣ DOGE: Department of Government Efficiency, tasked with reducing government spending. Ironically, it may cause more harm than good. ‣ GDP: Gross Domestic Product. A measure of economic activity. A shrinking GDP often signals a recession.

This isn’t the first time blind faith in authority has backfired. Remember the 2008 housing crisis? Experts assured us the market was stable, right until it imploded. Same story, different costume. Just like back then, ignoring the warning signs can cost you everything.

Danny Moses, the investor famed for predicting the 2008 crash, now warns against DOGE’s recklessness. But is anyone listening? History tells us most won’t, until it’s too late.

Advice

Don’t blindly trust headlines. Scrutinize the data yourself. “Efficiency” without oversight is just another word for disaster.

Source

https://www.reddit.com/r/stocks/comments/1jkjhca/the_big_short_investor_who_predicted_the_2008/