Buffett Warns Obama: Economic Recovery Still Has a Long Way to Go
Friday, 16 Jul 2010 03:46 PM Article Font Size
President Barack Obama heard a sobering message from Warren Buffett when he asked for the investment guru's views about the economic recovery, according to an interview the president gave NBC News on Thursday.
"I'll tell you exactly what Warren Buffett said. He said, 'We went through a wrenching recession. And so we have not fully recovered. We're about 40, 50 percent back. But we've still got a long way to go,'" Obama told NBC during a visit to Holland, Mich., to promote his job creation policies.
Obama chatted with Buffett in the Oval office on Wednesday as he sought ideas on how to translate higher U.S. growth into stronger hiring. This would help him deliver on an election year promise to tackle unemployment currently at 9.5 percent.
Buffett, who built an estimated $47 billion fortune running his insurance and investment company Berkshire Hathaway Inc., warned Obama the recession created a huge overhang of excess capacity in the economy that would simply take time to mop up.
Obama said Buffett specifically used the example of the U.S. housing market, noting 1.2 million new homes were built on average per year in the United States, according to historic trends. That number soared above 2 million during the property bubble, but construction activity has since collapsed.
"What Warren pointed out was, look, we're gonna get back to 1.2 (million). But right now we're soaking up a whole bunch of inventory. So a lot of the challenge is to work our way through this recession," Obama said.
High unemployment is another type of excess economic capacity. Obama's Democrats risk severe punishment by voters in midterm congressional elections on Nov. 2 if he fails to convince them stronger U.S. growth means better times ahead.
A series of polls this week showed that Americans are increasingly unhappy about Obama's handling of the economy.
So come on wealthy lets move fast, your big chance is here at last. Now you can own your neighbors home, kick that family out, make em roam. Interest rates are oh so low, make your bottom line grow grow grow. You didn't borrow yourself in to hock, so now you'll own every house on your block....
So it's one, two ,three ,who're ya voting for? This guy is crappy, we deserve more,
and it's 5-6-7 lets move it people, it's not too late, lets get out and show that bunch the gate....... All right.....
The Redneck Fiddlers band
Originally posted by FMFWell, maybe...Didn't the government offer tax incentives for first time home buyers, and extend that until June 1st.... now was that for new homes? I may be wrong, but I saw 6 new homes go up around here, with 4 sitting empty?
Seems to me that Obama can take quite a bit of political comfort from Warren Buffett's words.
I wonder? Would a credit for buying a pre-owned home have been better.... now I am hanging out here,, but oh well.
Just checked. tax credit was for first time home buyers, whether or not it's a new, or used home..... 8000k.... I didn't qualify,, argh.
Originally posted by zeeblebotYa, you're right.. one guy who has to be careful with his words,, Buffett.
Warren would probably rather not weather the financial storm that would result if he said "the double dip's loomin' large and we're all going DOWN!!!"
How to survive a depression.... Savings, solitude, and supplies..... including a gun or few.
Originally posted by zeeblebotYa, you're right.. one guy who has to be careful with his words,, Buffett.
Warren would probably rather not weather the financial storm that would result if he said "the double dip's loomin' large and we're all going DOWN!!!"
How to survive a depression.... Savings, solitude, and supplies..... including a gun or few.
Originally posted by zeeblebotYa, you're right.. one guy who has to be careful with his words,, Buffett.
Warren would probably rather not weather the financial storm that would result if he said "the double dip's loomin' large and we're all going DOWN!!!"
How to survive a depression.... Savings, solitude, and supplies..... including a gun or few.
Originally posted by zeeblebotYa, you're right.. one guy who has to be careful with his words,, Buffett.
Warren would probably rather not weather the financial storm that would result if he said "the double dip's loomin' large and we're all going DOWN!!!"
How to survive a depression.... Savings, solitude, and supplies..... including a gun or few.
Originally posted by FMFHow does one buy a home there? Through a real estate agent? I guess what I'm asking, who was able to raise the price to kill the tax gains?
Didn't work out so well for Australia under Howard ten or so years ago. The cost of a house to a first time buyer simply went up by more or less the amount of the subsidy.
Originally posted by AThousandYoungHere's an idea my friend,, move your 401K into a 72T which will allow you a certain amount of withdrawal to invest in realestate..... become a land barren....
I'd like to see his analysis of what could have been done better (if anything). It's possible that we've recovered as much as is reasonably possible. Thanks W!
Now the wealthy get to mop up without giving up much precious cash.
If you don't beleive in yourself, who will...
It was not "W" who caused the housing crash,,,,, read up on it.
Originally posted by Hugh GlassThe only houses I have lived in are rented ones and the one I built myself. I have little empathy for people with their caps in hand looking for subsidies, and I find it rather ironic when 'right wingers' and supporters of "capitalism" endorse bludger culture with such exquisite selectivity when it suits them.
How does one buy a home there? Through a real estate agent? I guess what I'm asking, who was able to raise the price to kill the tax gains?
Originally posted by FMFBuild the whole thing from ground up, or just the GF on the job over the contractors?.. this is a serious question, not fishing.. I admire the craftsmanship that goes in to building ones own home...
The only houses I have lived in are rented ones and the one I built myself. I have little empathy for people with their caps in hand looking for subsidies, and I find it rather ironic when 'right wingers' and supporters of "capitalism" endorse bludger culture with such exquisite selectivity when it suits them.