Buffett Sees 'Long, Deep' Recession

Discussion in '2008 Archive' started by Crabtownboy, May 25, 2008.

  1. Crabtownboy

    Crabtownboy
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    Buffett Sees 'Long, Deep' Recession
    Posted: 2008-05-25 07:07:28
    Filed Under: Business News, Nation News
    BERLIN (May 24) - 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."

    http://news.aol.com/business/story/_a/buffett-sees-long-deep-recession/20080524213209990001

    Bush's legacy, disasterous foreign policy and disasterous domestic policy followed by a disasterour monetary policy. We remember bad presidents by how long it takes to clean up the mess they leave behind. I doubt many if any of us live long enough to see all the mess he has left cleaned up. Sad legacy.
     
  2. billwald

    billwald
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    How much of this is "I have mine but you can't have yours" syndrome?

    I think it will be more stagflation than recession. The wages of the working class will fall as prices rise.
     
  3. Martin

    Martin
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    ==While I don't claim to know more about economics than Warren Buffett, I don't agree that we are already in a recession. The technical definition of a recession, as the article notes, has not yet been met. Therefore there is no recession. The current problem is two-fold.

    1. High gas prices. Gas prices are being driven up by the markets, by the lack of research into more supply and alternative supply, and the refusal of our federal leaders (in both parties) to really find out why the oil companies are seeing record profits while the prices continue to rise. The high gas prices are causing the cost of living and doing business to go up.

    2. Home building/sales. The housing industry has gone bust in some areas of the country.

    We are not in a recession, yet.

    Nothing in this country is going to get better until we, the people of this Republic, get serious about changing it. The current pack of wolves we continue sending to Washington, over and over again, are going to change nothing.
     
  4. Revmitchell

    Revmitchell
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    Ahhh....the words the libs were just dying to hear.
     
  5. Crabtownboy

    Crabtownboy
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    What makes you think that?
     

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