Buffett says US still in recession

The billionaire investor has his own definition of the word and does not agree that the downturn ended more than a year ago.

By Money Staff Sep 23, 2010 11:21AM
Warren Buffett. Credit: (© Paul White/AP)Reuters

Billionaire investor Warren Buffett said the U.S. economy remains in a recession, disputing an assessment by a leading arbiter of economic activity that the downturn ended more than a year ago.


"We're still in a recession," Buffett told CNBC TV in an interview broadcast today. "We're not gonna be out of it for a while, but we will get out."


On Monday, the National Bureau of Economic Research said the world's largest economy ended an 18-month recession in June 2009 but cautioned that its assessment does not mean normal activity has resumed.


Buffett said he defines a recession differently than the NBER does, saying a downturn ends when real per-capita gross domestic product returns to its pre-downturn level.


President Barack Obama said Monday that economic weakness is "still very real" for the millions of Americans who are out of work, have seen the value of their homes fall or are mired in debt.

On Tuesday, the U.S. Federal Reserve, which has already driven short-term lending rates to near zero, said it is prepared to provide additional stimulus to support economic expansion and avert possible deflation.


"We've used up a lot of bullets," Buffett said. "And we talk about stimulus. But the truth is, we're running a federal deficit that's 9% of GDP. That is stimulative as all get out."


Buffett's $45 billion net worth makes him the second-richest American, trailing only Microsoft's (MSFT) co-founder Bill Gates, Forbes magazine reported Wednesday.


11Comments
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

112
112 rated 1
288
288 rated 2
479
479 rated 3
645
645 rated 4
644
644 rated 5
653
653 rated 6
638
638 rated 7
483
483 rated 8
288
288 rated 9
123
123 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
AAPLAPPLE Inc10
ATVIACTIVISION BLIZZARD Inc10
CTSHCOGNIZANT TECHNOLOGY SOLUTIONS10
FOXATWENTY-FIRST CENTURY FOX Inc CLASS A10
ITUBITAU UNIBANCO BANCO MULTIPLO S.A.10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.