The major short investor Danny Moussa warns of economic risks of federal functional discounts caused by Dogly (NYSE: ACN)

Danny MusaFamous for his careful prediction of the 2008 financial crisis, expressed his concerns about the economic impact of discounts in recent federal jobs.

What happenedFounder: Musa Projects Warning that the market was not fully considered the economic repercussions to reduce the jobs it started Ministry of Governmental efficiency (Dog), which is a supported step Elon Musk.

Moussa expressed his concerns about the negative effects of the economy, saying: “We are hurting the aspect of revenues from the equation.”

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Under the president Donald TrumpAdministration Department, more than 24,000 federal employees have been rejected, with an additional 75,000 selection for the deferred resignation.

These cuts are part of the efforts made to reduce government spending, which claim to have decreased by $ 115 billion. However, experts question the accuracy of these savings.

Moussa noticed that the discounts have begun to influence the main contracts, with Accenture Plc ACN The loss of US government contracts, causing its share price to decrease by 7.3 %.

The elimination of federal jobs and contracts creates a “unbearable cycle”, which affects both small companies and private contractors.

The flow of former federal workers in the labor market raises concerns about their ability to find a new work, especially in sectors such as technology and data science. The uncertainty surrounding the definitions and the display of employment and immigration increases the complexity of the situation, leaving employers hesitant to make employment decisions.

Why do it matterDanny Moussa is not new in making bold predictions. Moussa and his colleagues in FrontPoint Partners, who became famous for the failure of the American housing market before its collapse in 2008, was famous in the book “The Big Short”, in a movie.

Recently, Moses and his peers turned their focus into long sites, especially in Asian stocks and gold.

Meanwhile, Michael Puri, the other “short” alum, is betting on Chinese technology companies, and expects possible gains if China reduces interest rates.

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Slip: This content was partially produced with the help of artificial intelligence tools and was reviewed and published by Beenzinga editors.

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