OMAHA, Neb. - Billionaire Warren Buffett said Saturday that the U.S. government is taking the correct actions to help the economy recover. Buffett spoke briefly before the opening of the annual meeting for his Berkshire Hathaway Inc., expected to draw an audience of roughly 35,000 people.
"The government is doing the right things," Buffett said. "They're acting in a countercyclical manner." But Buffett said he can't predict how quickly the economy and the markets will improve.
---"Buffet: Government is doing the right thing," Associated Press, msnbc.com (5.03.09)
And the next day, he held forth on the recession and the "stress test" on banks:
OMAHA, Nebraska - Billionaire Warren Buffett says the latest recession really shook up Americans' confidence but he sees the economic slide ending. [But] the head of Omaha, Neb.-based Berkshire Hathaway Inc. said Monday that he can't predict how quickly the economy will improve....
Addressing the bank "stress tests" due to be released this week, Buffett said most of the banks the U.S. government is evaluating with stress tests are not too big to fail. Buffett says he's not sure how the government will handle the situation when the results are released, but he doesn't think the government should rule out the failure of most of the banks. Buffett said all but the four biggest banks the government is examining could be sold and should not be considered too big to fail.
---Buffet sees economic slide ending," Associated Press, msnbc.com (5.4.09)
So, let's see, Warren Buffet thinks the Obama economic team are doing the right thing with TARP, the stimulus package and other economic stimulus and remedial programs. (And in a 4.04.09 cnbc interview he accepts that the associated debt levels and implications will be challenging, likely inflationary, and notes matter-of-factly and without concern that significant additional taxes will have to be raised--and clearly implies that in all this we have had no choice.) And as to the results of the government "stress test" on banks, he says any banks but the four largest should be allowed to fail and could be sold. Of course, that would allow large, sound banks like Wells Fargo, in which Mr. Buffet has a substantial investment interest, to buy those failed banks. Yes, it is a self-serving prescription. But that's alright; it is also balanced and likely right. So far so good.
He also sees signs that the recession is ending, although he won't or can't predict when economic recovery will begin or how quickly it will improve. (Although in the same cnbc interview, he stresses how optimistic he is about recovery and the future strength of the economy.) Okay, Mr. Buffet, I think I've got it. And that works for me.
http://www.msnbc.msn.com/id/30532962/
http://www.msnbc.msn.com/id/30547579/
No comments:
Post a Comment