Warren Buffett Turns Bearish on the Economy

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Warren Buffett Turns Bearish on the Economy

Billionaire Investor and chairman of Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B), Warren Buffett told CNBC today that he is not too optimistic about US growth despite the housing sector showing signs of recovery.  In the interview he says, “The general economy in the United States has been more- or-less flat, and so the growth has tempered down,” and on housing, “we’re seeing a pickup, and it’s noticeable. It’s from a very low base and it doesn’t amount to a whole lot yet, but it’s getting better.”

This is a complete contrast to his earlier remarks a year ago, and recent remarks by a Berkshire Hathaway subsidiary CEO, only several days ago. Last year Bufett said in an interview on Bloomberg Television’s Betty Liu in Sun Valley, that US economy and jobs will “come back big time” with improvements in residential construction. The unemployment rate has consistently exceeded 8 percent mark for last three years.

Giving clarification, the “Oracle of Omaha” told CNBC today “I’ve got a little different story this time, For a couple years I’ve been telling you that everything except residential housing was improving at a moderate rate, not crawling, but not galloping either, but that residential housing was flat-lining. And the last two months it’s been just sort of the opposite.”

Commenting on the Europe, Buffett said things are beginning to “slip pretty fast” in Europe, especially over the past six weeks. The 81-year-old says that the crisis will be resolved in another ten years as in the short term there seems to be no solution. According to him an unclear authority and absence of any printing press in Europe exacerbates the Euro-zone crisis.

Warren Buffett is an American business magnate, investor, and a philanthropist. He is considered the most successful investor of the 20th century. He is consistently ranked among the world’s wealthiest people. Buffett is also called the “Wizard of Omaha”, “Oracle of Omaha”, or the “Sage of Omaha” and is adored for his adherence to the value investing philosophy. Warren Buffett is also an immense philanthropist, as he has pledged to give away 99 percent of his fortune to philanthropic causes, primarily via the Gates Foundation. He has also encouraged many billionaires to give away most of their money to charity, after they pass away. On April 11, 2012, Buffett was diagnosed with prostate cancer.

Despite being bearish on the US, the philanthropist businessman still says that US economy is faring better than “virtually any other big economy” around the world.

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