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Number 2

Posted by on Jun. 24, 2009 at 10:32 PM
  • 8 Replies

Buffett Says U.S. May Need a Second Stimulus Package

By Andrew Frye, Betty Liu and Erik Holm

June 24 (Bloomberg) -- Billionaire investor Warren Buffett said the U.S. may need a second economic stimulus package as unemployment is poised to continue rising.

“It looks like we’re going to need more medicine, not less,” Buffett said today in a Bloomberg Television interview. “We’re going to have more unemployment. The recovery really hasn’t got going.” Buffett is chairman and chief executive officer of Omaha, Nebraska-based Berkshire Hathaway Inc.

President Barack Obama signed a $787 billion stimulus bill in February, which included tax cuts and spending on infrastructure projects intended to save or create 3.5 million jobs. The Federal Reserve, under Chairman Ben S. Bernanke, has doubled its balance sheet to help thaw credit markets. In the first quarter, the U.S. gross domestic product plunged, and Berkshire reported its first loss since 2001.

The economic rebound “will be a slow process,” said Buffett, who predicted the joblessness rate will exceed 10 percent. The economy “hasn’t turned yet. There’s no telling how long it will take. It will happen.”

Buffett praised Bernanke’s handling of the slide in confidence that caused banks to curb lending after the bankruptcy of Lehman Brothers Holdings Inc. in September. Bernanke is “the right man” to lead the central bank and should be given a second term, Buffett said.

The economy has lost about 6 million jobs since the recession began in December 2007. The U.S. unemployment rate jumped to 9.4 percent in May, the highest level in more than 25 years, and Obama predicted yesterday the jobless figure will exceed 10 percent by year-end.

Leverage

Investors and consumers “went crazy on leverage” and will need time to reduce their debt before a recovery can take shape, Buffett said.

Separately, he told Fox Business Network that he intends to keep his Goldman Sachs Group Inc. warrants. The New York-based bank said in September it would sell $5 billion in preferred stock to Berkshire. Buffett gets a 10 percent dividend, or $500 million a year, and gained warrants to buy $5 billion of common stock at $115 each over the next five years.

Goldman Sachs advanced $1.46, or 1 percent, to $142.65 at 4:15 p.m. in New York Stock Exchange composite trading. Berkshire rose $1,000, or 1.2 percent, to $86,800.

Buffett also warned in a CNBC interview that the U.S. may face “high rates of inflation” because of government spending designed to ease the financial crisis.

Charity Auction

Buffett, 78, ranked the world’s second-richest man by Forbes magazine, made the remarks in advance of a lunch with Zhao Danyang, general manager of Pureheart Asset Management Co. in Hong Kong. Zhao bid more than $2.1 million last year to win Buffett’s annual charity auction to support San Francisco’s Glide Foundation, which provides food, medical care and other services to the poor.

Zhao brought his wife, son and friends to the lunch with Buffett at Manhattan’s Smith & Wollensky steakhouse today. Zhao’s bid last year was three times the previous record for the lunch, and the largest ever for an EBay Inc.-sponsored charity auction.

Winners typically wait a year before dining with Buffett. This year’s fundraiser is in its fourth day on the Internet auction site. Bidding stood at $135,678 at 1:30 p.m. New York time today and is set to close June 26. In past years, bidders waited until the last minutes before driving up the price. The current auction has attracted 56 bids.

Alan Stillman, the founder of the steakhouse, is donating $10,000 to Glide for the right to host the event. He said today that he entered his own bid on the auction two years ago, without winning.


          

   

by on Jun. 24, 2009 at 10:32 PM
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Replies (1-8):
mamadixon
by Gold Member on Jun. 24, 2009 at 10:33 PM

Monopoly anyone?Who bets China gets us for a real steal?

stormcris
by Christy on Jun. 24, 2009 at 10:35 PM

Warren was wrong last time and is wrong this time and is only concerned about his own money.

mamadixon
by Gold Member on Jun. 24, 2009 at 10:41 PM

Why DO people listen to this guy anyway?

Della529
by Matlock on Jun. 24, 2009 at 10:42 PM

Is anyone paying attention to the backgrounds of these who are making a claim to prop themselves up with taxpayer bailouts?

Yeah, it's "number two" alright, and it's being spoon-fed to the American masses.  BUT!!  We are eating it like cake as long as it comes from those we "trust".

Why would anyone trust a billionaire with taxpayer monies?  He's a dominant CAPITALIST.  Why would he believe that the market cannot recover on it's own if he hadn't had losses that could be remedied with taxpayer dollars?

Please, people...wake the FFFFF up!!

Happytime
by on Jun. 24, 2009 at 10:43 PM


Quoting stormcris:

Warren was wrong last time and is wrong this time and is only concerned about his own money.

This isnt our second Stim Package its like our fourth isnt it? it didnt work then and its not gonna work now ...Arschloch

Go to fullsize image


Happytime
by on Jun. 24, 2009 at 10:53 PM


Quoting Della529:

Is anyone paying attention to the backgrounds of these who are making a claim to prop themselves up with taxpayer bailouts?

Yeah, it's "number two" alright, and it's being spoon-fed to the American masses.  BUT!!  We are eating it like cake as long as it comes from those we "trust".

Why would anyone trust a billionaire with taxpayer monies?  He's a dominant CAPITALIST.  Why would he believe that the market cannot recover on it's own if he hadn't had losses that could be remedied with taxpayer dollars?

Please, people...wake the FFFFF up!!

Della they are robbing us blind...but its not " The rich" its a select few who are rich and robbing us ... and I agree people need to wake up...

wow I agree with you! lol

Go to fullsize image


Malapertinent
by on Jun. 24, 2009 at 11:03 PM


Quoting Happytime:


Quoting Della529:

Is anyone paying attention to the backgrounds of these who are making a claim to prop themselves up with taxpayer bailouts?

Yeah, it's "number two" alright, and it's being spoon-fed to the American masses.  BUT!!  We are eating it like cake as long as it comes from those we "trust".

Why would anyone trust a billionaire with taxpayer monies?  He's a dominant CAPITALIST.  Why would he believe that the market cannot recover on it's own if he hadn't had losses that could be remedied with taxpayer dollars?

Please, people...wake the FFFFF up!!

Della they are robbing us blind...but its not " The rich" its a select few who are rich and robbing us ... and I agree people need to wake up...

wow I agree with you! lol

confused


          

   

stormcris
by Christy on Jun. 24, 2009 at 11:09 PM

Technically, yes, I think this would be the fourth, we haven't finished doling out the money from the other ones yet either. Warren made a lot of money on the stock market and has been dubbed a financial genius ...my opinion he is just lucky and I forget what he said exactly in March but I remember him saying we were on the road to recovery...now this?....I really believe he has lost his mind...Gold was a little over $250.00 per ounce in 2000 when we entered this recession it was worth around $650.00, today it is $934.10 (it has reached over $1000.00 this year)which is even higher than it was during the early 80s...this is how I judge the real value of how much our dollar is going up and down because gold really never changes. For the past few months we have seen an overall deflation of -1.28% as of May, however with oil and gold still climbing it demonstrates the true value of the dollar. If we have any more stimulus packages gold is going to be valued at $1500.00 per ounce. I am willing to bet Warren Buffet is hording that now instead of dollars.

Just for those who like proof of the gold thing:

the value of gold has not changed over the past 50 -100 years. How could this be? You ask. It is simple. The value of gold does not change. But the value of the currency you use to buy and sell gold does. An ounce of gold will still purchase the same goods now as it did fifty or one hundred years ago. But you need an awful lot more dollars to make the same purchase with currency.

http://goldprice.org/buying-gold/2007_11_01_archive.html

Quoting Happytime:


Quoting stormcris:

Warren was wrong last time and is wrong this time and is only concerned about his own money.

This isnt our second Stim Package its like our fourth isnt it? it didnt work then and its not gonna work now ...Arschloch


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You must be a member to reply to this post.
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