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Thread: US Economy will begin to recover in 5 years: Investment guru Warren Buffett

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    A*O
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    Default US Economy will begin to recover in 5 years: Investment guru Warren Buffett

    There's a huge amount of media hysteria about, but this guy knows what he's talking about IMO. I think his timeframe is realistic too.

    Buffett says five years till economy recoversMarch 10, 2009 - 7:40AM

    Warren Buffett. Photo: AFP
    Billionaire Warren Buffett says the US economy could recover in five years, likening the current battle against prolonged recession as a Pearl Harbour-like situation during World War II.

    "I think that economy will be fine in five years, but I wish we'd get there faster," said Buffett, one of the world's richest men, in an interview with CNBC.

    "America's best days are ahead, but how fast we'll go there is in question."

    He described the current situation, in which unemployment is at a 25-year high and stocks have plunged to 12 year lows, as "an economic Pearl Harbour" and "an important war which could be won".

    Japanese planes attacked the US Naval base at Pearl Harbour on December 7, 1941, leaving more than 2,000 servicemen dead. The surprise strike drew the US into World War II.

    Buffett, who heads the holding company Berkshire Hathaway, said the Federal Reserve's "prompt and wise action" had prevented the situation from "getting even worse" as the central bank cut interest rates to virtually zero and took other steps to reign in turmoil.

    Asked about the poor economic recovery and plunging inflation, he said "it will depend on the wisdom of government's politics".

    "I've never seen Americans more fearful," he said. "It takes five minutes to become fearful, much more time to regain confidence. The system does not work without confidence," he said.

    AFP
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    Elite Member Grimmlok's Avatar
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    I'd believe what Krugman says over this retard.. Buffett thought the housing bubble and subprime mess was just dandy before it crashed. Krugman was sounding alarms for the last however many years.
    I am from the American CIA and I have a radio in my head. I am going to kill you.

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    So lets reelect Obama just to be safe.

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    Elite Member Little Wombat's Avatar
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    Ooh, I taped this CNBC interview to watch later.

    When he says 5 years, I'm guessing he means getting back to the last highs - DJIA, etc. Not implausible. It usually takes longer to grow back than it does for the values to come crashing down.

    That doesn't mean, however, that the economy will be in a recession (negative growth) for 5 years. Just means it'll take 5 years of growth to get back to where we left off.
    "Oh! I've been looking for a red suede pump!"
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    Elite Member Grimmlok's Avatar
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    where the US left off was unsustainable
    I am from the American CIA and I have a radio in my head. I am going to kill you.

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    Elite Member Little Wombat's Avatar
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    That's the good thing IMO about bubbles bursting. The growth afterwards is usually more reasonable/sustainable.
    "Oh! I've been looking for a red suede pump!"
    - Marie (Carrie Fisher), When Harry Met Sally

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    I think he means we'll be bouncing along the bottom for the next 5 years and then the cycle will swing back into growth. Let's hope that when it does the lessons leabout this crash will be well learned and heeded next time (not holding my breath).
    If all the women in this place were laid end to end, I wouldn’t be surprised - Dorothy Parker

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    Quote Originally Posted by bychance View Post
    So lets reelect Obama just to be safe.
    I just hope people don't get impatient and give him a chance to finish what he started.

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    Crashes happen very quickly (even though the warning signs were there for a long time and people chose to ignore them). Recoveries take much longer. This isn't going to be a Quick Fix.
    If all the women in this place were laid end to end, I wouldn’t be surprised - Dorothy Parker

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    Elite Member darksithbunny's Avatar
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    Recover? For who??? I know my shit is gonna take at least 10 to recover if things go the way they need to. But then again I am sure that is easy to say when you don't have to worry about making the choice between having food or electric. Get a fucking clue.

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    Quote Originally Posted by hotncmom View Post
    I just hope people don't get impatient and give him a chance to finish what he started.
    Too late. 2 months in office and people are already complaining about 'no change'.

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    Elite Member qwerty's Avatar
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    Wonder what the next bubble is going to be. Don't think for a minute that people are going to learn from this catastrophe. If they can figure out a new way to make money and manipulate the markets people will jump on the bandwagon and all will be forgotten. Greed never goes out of style.

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