Warren Buffett says economy fell off a cliff

Billionaire Warren Buffett said the economy has “fallen off a cliff” over the past six months and consumers have changed their habits in remarkable ways.

Buffett said Monday during a live appearance on CNBC that current economic turmoil has basically followed the worst-case scenario he envisioned.

By JOSH FUNK, AP Business Writer

In this May 21, 2008 file photo, U.S. billionaire investor Warren ...
In this May 21, 2008 file photo, U.S. billionaire investor Warren Buffett speaks during a news conference in Madrid. Buffett says the economic turmoil that contributed to a 62 percent profit drop last year at the holding company he controls is certain to continue in 2009, but the revered investor remains optimistic.(AP Photo/Paul White, File)

“It’s fallen off a cliff,” Buffett said. “Not only has the economy slowed down a lot, but people have really changed their habits like I haven’t seen.”

Buffett said the changes are reflected in the results of Berkshire Hathaway Inc.’s subsidiaries. He said Berkshire’s jewelry companies have suffered, but more people have been willing to switch to Geico to save money on car insurance.

He predicted that unemployment will likely climb a lot higher before the recession is done, but he also reiterated his optimistic long-term view: “Everything will be all right. We do have the greatest economic machine that’s ever been created.”

Fear and confusion have been driving consumer and investor behavior in recent months, Buffett said.

The nation’s leaders need to clear up the confusion before anyone will become more confident, and he said all 535 members of Congress should stop the partisan bickering about solutions.

Read the rest:
http://news.yahoo.com/s/ap/2009
0309/ap_on_bi_ge/buffett_economy

Office of Management and Budget Director Peter Orszag arrives ...
“Beware of geeks bearing models,” said Warren Buffett; which could be worrisome to people.Β  Office of Management and Budget Director Peter Orszag arrives to deliver testimony before the House Ways and Means Committee on Capitol Hill in Washington, March 4, 2009.REUTERS/Jonathan Ernst (UNITED STATES)

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2 Responses to “Warren Buffett says economy fell off a cliff”

  1. RaiulBaztepo Says:

    Hello!
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    PS: Sorry for my bad english, I’v just started to learn this language πŸ˜‰
    See you!
    Your, Raiul Baztepo

  2. PiterKokoniz Says:

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    And want to ask you: will you continue to post in this blog in future?
    Sorry for my bad english:)
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    Piter.

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