Buffett: Second Stimulus Might Be Needed For Economy

[MOP]

Buffett: Second Stimulus Might Be Needed for Economy

By: Reuters | 09 Jul 2009 | 09:39 AM

Legendary investor Warren Buffett said in an interview aired on Thursday unemployment could hit 11 percent and a second stimulus package might be needed as the economy struggles to recover from recession.

Buffett, the billionaire founder of Berkshire Hathaway , said Americans suffered "a shock to the system" from the economic difficulties in the final quarter of last year but had started to rebound.

"We're not in a freefall, but we're not in a recovery either," he told ABC's "Good Morning America." "We were in a freefall really in the last quarter of last year, starting in the financial markets and spreading to the economy, and we had this huge change in behavior."

Buffett, a supporter of President Barack Obama during last year's election campaign, said a second economic stimulus package might be needed. The Obama administration says it does not see a need for a second stimulus yet.

"I think a second one may well be called for. It is not a panacea. A stimulus is the right thing. You hope it doesn't get watered down," he said.

He likened the first $787 billion stimulus package passed by Congress to "half a tablet of Viagra and then having also a bunch of candy mixed in --- it doesn't have really quite the wallop."

Buffett said unemployment had "a ways to go" and he would not be surprised to see it hit 11 percent before it recovers. "I'm not predicting it but no that would not surprise me," he said of the 11 percent figure.

"We're going to come out of this better than ever, the best days of America lie ahead but not next week or next month," he said.

http://www.cnbc.com/id/31828467

So we need more Viagra according to Buffet. I personally think they are ******* us pretty well at the moment so I disagree.

Edited July 9, 2009 by MOP

[swissy_fit]

http://www.cnbc.com/id/31828467

So we need more Viagra according to Buffet. I personally think they are ******* us pretty well at the moment so I disagree.

Those preference shares in GS aren't influencing your opinion are they Warren?

[silver surfer]

http://www.cnbc.com/id/31828467

So we need more Viagra according to Buffet. I personally think they are ******* us pretty well at the moment so I disagree.

[Flat Bear]

Imagine the situation when all the money in the world and all the money that the central bankers can imagine up has been used and there is only 85p of free money left.

Do you use it on a last ditch attempt to get QE to work or do yo buy an ice cream?

[porca misèria]

http://www.cnbc.com/id/31828467

So we need more Viagra according to Buffet. I personally think they are ******* us pretty well at the moment so I disagree.

So can we assume Berkshire Hathaway has a growing stake in Pfizer?

[Dr Renter]

Actually as a first dose, half a viagra tablet should get the job done. Unfortunately they seem to have given the half a tablet to a bloke who has been taking the full dose every day for 9 years.

[Bloo Loo]

so hes saying the first stimulus wasnt.

[porca misèria]

Actually as a first dose, half a viagra tablet should get the job done. Unfortunately they seem to have given the half a tablet to a bloke who has been taking the full dose every day for 9 years.

Having no personal experience thereof, I bow to your evidently-superior knowledge.

[interestrateripoff]

And the money to pay for it is going to come from where?

We might as well just let people print there own money and have done with it.