Here is a commentary from Warren Buffet on the economic crisis. It is a reworked piece from “The Swamp”, Chicago Tribune´s Washington blog, written by Mark Silva.
“We have not come off the bottom yet,” Warren Buffett says.
“Buffett, the multibillionaire oracle from Omaha and informal adviser to President Barack Obama, says the actions that the federal government is taking today raise the “probability” of “very significant inflation down the road,” but they are necessary and “appropriate.”
“What we’re doing raises the probability significantly of very significant inflation down the road –not this year or next year or the year after that.. But we’ve taken actions and they were appropriate actions,” Buffett said in an interview with FOX Business Network’s Liz Claman.
“It will have consequences, and nobody knows exactly what they will be and how effective we will be at draining a system we’ve been flooding, but the probability of significant inflation has gone up,” Buffett said. Asked about the possibility that the U.S. is issuing too much debt to pay for all the bailouts and economic stimulus underway, he said: “Well, it’s doing what it has to do. And it was appropriate.”
With unemployment already clocked at 9.4 percent last month and expected to surpass 10 percent in the months ahead, the CEO of Berkshire Hathaway – its legendary stock down to the $86,000-per-share range since the recession took hold – said of the jobless rate: “It’s going higher — business has not bounced back. We have not come off the bottom yet…
“It will work out in the end,” Buffett said. “Since 1776. it’s been a mistake to bet against America. America solves its problems. How soon, nobody knows. But we have not come off the bottom yet. And it will work out in the end.”
Read and see the full interview here.
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