Warren Buffett Says U.S. Economy Has `Fallen Off a Cliff' as Berkshire Units Hurt

[marmar]

Berkshire’s Buffett Says Economy ‘Fallen Off a Cliff’ (Update3)
By Erik Holm


March 9 (Bloomberg) -- Billionaire Warren Buffett, whose Berkshire Hathaway Inc. posted its worst results ever in 2008, said the economy “has fallen off a cliff” and that efforts to stimulate recovery may lead to inflation higher than the 1970s.

The American public is fearful, confused and changing their buying habits, which is showing up at Berkshire’s operating units, Buffett said during an appearance on the CNBC television network today. While the recession will end and future generations will live better than their parents, the economy “can’t turn around on a dime,” Buffett said, adding that some inflation is appropriate right now.

“We are doing things now that are potentially very inflationary,” he said. Buffett called on Congress to unite behind President Barack Obama, comparing the economic crisis to a military conflict that needs a commander-in-chief. “Patriotic Americans will realize this is a war,” he said.

Berkshire’s shares have lost almost half their value in the past year as the bear market dragged down financial assets and the recession put pressure on profit from the company’s more than 70 operating businesses. The Geico insurance unit has gained ground while the jewelry units are “just getting killed,” he said. ............(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=azL2a7n4_.Wc&refer=home

[Sedona]

1. It was "pushed" off a cliff by the Repukes!

.

[ogneopasno]

2. Well, eventually, that's what happens when you buy up little factories and shut them down, Warren.