‘The Big Short’ investor who predicted the 2008 crash warns the market is ‘underestimating’ the economic impact of DOGE’s mass spending cuts

Investor Danny Moses warns that markets have not yet accounted for the economic impact of mass government job cuts by the Department of Government Efficiency (DOGE). The cuts, which have eliminated over 24,000 federal jobs and jeopardized private contracts, are disrupting consumer confidence and small businesses. Many former federal workers may struggle to find private-sector jobs, further straining the labor market.
Moses cautions that these layoffs, combined with uncertainty over tariffs and economic policy, could create an “unvirtuous cycle” of declining spending and slowed growth. While the full impact is not yet reflected in government data, experts fear that reduced consumer spending could significantly weaken the economy.