Investment guru Warren Buffett recently in an interview said that a longer period of time is needed for US economy to recover and un-employment to rise in the coming period of time.
Buffett said on Friday during the interview that more people will be jobless. He is not worried about the economy 5 years later but the performance 5 months later will still be painful and the situation will not turn for the better before mid of 2009.
Buffett estimates that the un-employment rate will rise greatly in 2009 to over 5.9% to 6.5% which is the FEDs estimation level for un-emplyment rate in mid 2009. The un-employment rate announced for October is 6.5%.
Buffett's vews are in great contrast to chief executive of the Fifth District Federal Reserve Bank at Richmond Jeffrey Lacker. Jeffrey Lacker estimates that it is reasonable that the economy will start to recover before mid of 2009.
Jeffrey Lacker says that it is reasonable to estimate that US economy will make a turn for the better sometime in 2009. He also warns that inflation may be back. Jeffrey Lacker says that a lot of analyst estimates that US economy will show upturn somtime in 2009 and he thinks that such estimations are reasonable.
Buffett says that he has also been through the low times and his company's stock price plummet. But is is not worried about the economy performance in the long run. A few months ago he urged investors to start buying US stocks and he recently increased a few investments including buying of Goldman Sachs and GE shares.
Also, Buffett says that even if he is invited, he will not accept to become the finance minister because he lovese what he is currently doing and he has yet to receive the offer.
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