Buffett grows more pessimistic on US economy
The Oracle of Omaha, in a live interview with CNBC, strikes a much more bearish tone than he has recently.
Ben Berkowitz, Reuters
Warren Buffett made some of his most pessimistic comments on the economy in recent memory Thursday, telling CNBC that things have slowed in the United States in the past six weeks.
Buffett, in a live interview, said Europe had also experienced a "pretty fast" slowdown in recent weeks as spending has declined.
The 81-year-old Oracle of Omaha said that even as the economy has cooled off, residential housing is starting to pick up, albeit off a low base. Watch the live interview in the video below.
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Buffett's Berkshire Hathaway (BRK.B) is heavily exposed to residential construction and real-estate sales, and he has said the economy will really pick up only when the housing market finally turns around.
Still, Buffett struck a much more bearish note than he has in the recent past, having said before that the U.S. economy was picking up slowly. He told CNBC he did not know precisely why things have slowed of late.
What a waste of an interview!!! I could only get through the first half before I felt like slitting my wrists.
This senile old fart was so vague, he never said ONE specific thing. Never pointed to any examples of anything.
Europe is worse off than the U.S. Duhh!
Europe has started to look bad in the last 4 to 6 weeks??? Are you kidding me? Does this guy even watch the news?
Housing is starting to get better? Really? The only reason pricing is on the rise a little in some places is the banks are holding on to all the new foreclosures instead of putting them on the market in an effort to create an artificial supply shortage. That has caused prices to rise a little but it's like holding an ever increasing flood of water behind a dam. It's got to be realeased at some point and when it does, the price of homes will bottom out again.
There's only two reasons you speak in generalities:
1. You're ignorant. Not the case with Buffett.
2. You don't want others to know what you know. That's how he made his billions.
As I see It, the masses are not spending because we no longer feel are employer will continue to employ us. The regular worker is doing two jobs now, and is threaten by being replaced also we are no longer being offered incentives, benefits, or pay increases. We will do without now, downsizing just like are employers. We have stop buying, our hope for the a retirement, & affordable health insurance, is now fizzling out, and fear is now ruling the middle class.
if you read between the lines you understand that the debt of governments is catching up to them. if they don't grow businesses that pays salaries and taxes then they dont have the tax revenues to redistribute as gdp and you cant take what is not being generated..(example: government spending in the US is 45% of gdp, france is 56%, they confiscate more but yet run deficits like the rest of europe except germany)
The home values are down so local government has less taxes, incomes are down so state and federal have less taxes. debt spending is bad spending and when it ends the economy contracts because they cant raise more. if they debt spend we pay later for the hope of growth but government spending is not productive. its a cost to the economy not a long term plan. its very simple. its a basic fundamental. add the fact that investments and saving rates are nil makes everything stop. this contraction will continue until asset values improve and debt amounts reduce. we have not reached bottom in a braod way. the debt problem is a train wreck thats been going on since 2008. in the great depression FDR wanted to pass an unused profit tax. basically he wanted to confisdcate all of this money people have on the side lines to spend to improve gdp and reduce unemployment. business were in the same situation. they held due to the outlook being negative. all he would have done was canabalize his future. thank god it got shot down. government needs to get small, get out of the way and let those with the funds direct them to their best use when the time is right. now is not yet.
CAN WE ALL AGREE ON ONE THING????
Press the friggin spam button on all this BS "free dating postings". If I am going to get upset over some blockheads post, at least it should be on topic!!!
and yet we're doing the same sociliast things that turned europe into the financial slog it is
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