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article imageWarren Buffett Says U.S. in Long and Deep Recession

By Chris V. Thangham     May 27, 2008 in Business
Warren Buffett, the world’s richest man, told a German magazine the U.S. economy is already in a recession that will last long and run deep.
Warren Buffett recently became the world’s richest man according to the Forbes Top 100’ billionaires list.
He is currently traveling through European looking for possible acquisitions. During his travels, he was asked by Germany’s Der Spiegel weekly whether or not the U.S. could avoid a recession.
Buffett told Der Spiegel:
“I believe that we are already in a recession…Perhaps not in the sense as defined by economists. ... But people are already feeling the effects of a recession…It will be deeper and longer than what many think,”
He said for an average person the recession is already there.
Buffett did not offer any fixes for the economic troubles, but he recently told AFP why the U.S. economy was sliding, saying:
"I think that the US has followed and is following policies which will cause the US dollar to weaken over a long period of time."
He also said the U.S. economy has managed well in the past, overcoming a depression period, two world wars and many financial crises.
"They say in the stock market ... buy stock in a business that's so good that an idiot can run it because sooner or later one will…Well, the United States is a little like that. We can take a little mis-management from time to time."
His company Berkshire Hathaway however is doing more than well despite the poor economic conditions. Berkshire has about $35 billion in cash, which they plan to invest in European companies.
Berkshire’s stocks include insurance, clothing, furniture, natural gas, corporate jets and candy companies. Berkshire also has major investments in companies such as Coca-Cola Co. and Anheuser-Busch.
One share of Berkshire Hathaway costs a record $123,970 to purchase.
More about Warren buffett, Economy, Recession
 
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