The chairman and chief executive officer of Omaha, Nebraska-based Berkshire Hathaway Inc. Warren Buffett, thinks the U.S. may need a second economic stimulus package as unemployment is poised to continue spiking.
“It looks like we’re going to need more medicine, not less,” Buffett said today in a Bloomberg [TV] interview. “We’re going to have more unemployment. The recovery really hasn’t got going.”
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.”
Investors and consumers “went crazy on leverage” and will need time to reduce their debt before a recovery can take shape, Buffett said. [Bloomberg]
Buffett also warned in a CNBC interview today that we may face “high rates of inflation” because of government spending designed to ease the financial crisis.