Thursday, June 25, 2009
From a CNBC interview today.
BECKY: The last time we sat down to talk to you was on May 4, and at that point you told us that you think we're in an economic war right now. How much progress do you think we've made in that war?
BUFFETT: Well, it's been pretty flat. I get figures on 70-odd businesses, a lot of them daily. Everything that I see about the economy is that we've had no bounce. The financial system was really where the crisis was last September and October, and that's been surmounted and that's enormously important. But in terms of the economy coming back, it takes a while. There were a lot of excesses to be wrung out and that process is still underway and it looks to me like it will be underway for quite a while. In the (Berkshire Hathaway) annual report I said the economy would be in a shambles this year and probably well beyond. I'm afraid that's true.
Buffett says he's not concerned about deflation, but thinks inflation will be a problem in coming years.
Buffett repeated his criticism of "cap and trade" as a method to control pollution, saying it would be a huge, regressive tax.
Buffett was a major supporter of Obama's throughout the campaign. He has always openly opposed cap-and-trade but this is really the first time he has seemed this concerned.
It is becoming clear that support for many of Obama's policies is collapsing rapidly. Looks like the American people bought a lemon...