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Buffett says economy close to recession

December 11, 2007

Billionaire investor Warren Buffett said the United States could slip into a recession if the jobless rate increases, he told CNBC television on Tuesday.

In a series of interviews throughout the day, Buffett, who built Berkshire Hathaway (BRKa.N: Quote, Profile, Research) into a $205 billion conglomerate, gave a sobering view of the economy's prospects, including the assessment that holiday retail sales were not looking good despite a post-Thanksgiving holiday burst.

Consumer spending is seen as a key buffer preventing a weaker U.S. economy from sliding into recession as the housing market continues its free-fall and the banking sector remains challenged by a credit crisis.

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Rating: 3.6/5 (5 votes)

Comments

budskaloha
Budskaloha - 7 years ago
Apparently Bob Rodriguez feels the same. He sounds pretty pessimistic in this article: [money.cnn.com]

I wonder if I should avoid buying new equities and build up my cash position?
danielw
Danielw - 7 years ago


I wonder why CNBC didn't lead the interview with the line that "Buffett says what the Fed decides to do doesn't really matter--and we are thus wasting your time."

Buffett doesn't spend his time worrying about a recession. He spends it looking at individual companies, how they are performing and are likely to perform going forward, along with what prices are placed on them.

Despite that, the news media focuses on comments that he himself places little emphasis on--and for some reason even just about everybody who admires Buffett does the same.

If Moses gave us the Ten Commandments today, I wouldn't be surprised if journalists only reported on what kind of sandals he was wearing and how people felt when they saw him again.

--Daniel

http://danielwahl.blogspot.com/

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