We are still in recession says Warren Buffett

 

Buffett

"We’re still in a recession," Buffett told CNBC television in an interview broadcast on Thursday. "We’re not gonna be out of it for a while, but we will get out."

On Monday, the National Bureau of Economic Research said the world’s largest economy ended an 18-month recession in June 2009, but cautioned that its assessment did not mean normal activity had resumed.

Buffett said he defines a recession differently from the NBER, saying it ends when real per capita gross domestic product returns to its pre-downturn level.

President Barack Obama said on Monday that economic weakness is "still very real" for the millions of Americans who are out of work, have seen the value of their homes fall, or are mired in debt.

Buffett, 80, runs Berkshire Hathaway Inc, which has roughly 80 operating businesses. "A great majority" of these businesses are "coming back slowly," he said.

Berkshire’s operations cover a broad swath of the economy, including the Burlington Northern Santa Fe railroad, Dairy Queen ice cream, Geico auto insurance, and luxury jewelers such as Borsheim’s. Buffett’s $45 billion net worth makes him the second-richest American, trailing only Microsoft Corp co-founder Bill Gates, Forbes magazine said on Wednesday.

Berkshire Class A shares fell 0.6 percent to $123,077 in morning trading. They traded as high as $126,160, their highest level in nearly 23 months, on September 17.

Hitesh Anand

I am a post graduate from Newcastle University, UK. I like studying and analyzing economic data and financial health of world.

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