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Sunday, May 25, 2008

Warren Buffett: US Recession “Deeper and Last Longer”

BERLIN (Reuters) - The United States is already in a recession and it will be longer as well as deeper than many people expect, U.S. investor Warren Buffett said in an interview published in German magazine Der Spiegel on Saturday.

He said the United States was "already in recession" and added: "Perhaps not in the sense that economists would define it" with two consecutive quarters of negative growth.

"But the people are already feeling the effects," said Buffett, the world's richest man. "It will be deeper and last longer than many think."

But he said that won't stop him from investing in selected companies and said he remained interested in well-managed German family-owned companies.

"If the world were falling apart I'd still invest in companies," he said.

Buffett also renewed his criticism of derivatives trading.

"It's not right that hundreds of thousands of jobs are being eliminated, that entire industrial sectors in the real economy are being wiped out by financial bets even though the sectors are actually in good health."

Buffett complained about the lack of effective controls.

"That's the problem," he said. "You can't steer it, you can't regulate it anymore. You can't get the genie back in the bottle."

1 comment:

sbvor said...

Notorious activist for the Democratic Party (and, therefore, media darling), Warren Buffet, continues to pimp for an imaginary recession.

Imaginary? Yep! Even Buffett admits that his imaginary recession is:

“not [a recession] in the sense as defined by economists”

Rather, the #1 Democratic cheer leader for the imaginary recession declared it’s all about how people are “feeling”. Well, DUH! The freaking media have been ramming this doom and gloom FICTION down their throats for at least the last six months! It’s no wonder the naïve little lemmings are now “feeling” like they’re in a recession (when even Buffett himself admits they’re NOT).

The “report” goes on to note:

“Omaha-based Berkshire has about $35 billion in cash and is looking to invest.”

Is Buffett looking to drive the markets down in search of the value plays he is known for? I would not presume to know.

Remember, even The San Francisco Chronicle has already debunked Buffett once.

Also recall, Buffett freely admits that he:

“never made any money out of economic forecasting”

Meantime, the professionals whose income depends upon accurate economic forecasts, continue to forecast economic growth in every quarter of 2008.

It is increasingly unlikely that we are currently in a recession or that we will be at any point in 2008:
The Recession of 2008 That Wasn’t?