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.”
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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.”
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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.
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