Prime Rate Credit

When Warren Buffett, currently the richest man alive at least in the US, and also the head of Berkshire Hathaway, and considered one of the best investors, if not the best investor ever, talks - everyone listens. And when Warren opened up about his feelings on the state of the current economy here in the US, it was no different. People will pay over half a million just to have lunch with the self made millionaire and investor, so it’s no surprise that he is one of the most quoted and quotable figures in the economic and financial landscape today.

Buffett most recently opened up about his views on the currently high oil prices and said that he does not believe that this is an issue of a price increase driven by speculation on oil prices, but rather more a product of that good old economics term supply and demand. He says that he believes the supply is not as excessive as it used to be and that has driven the price increases we have so lamented over the past few years.

Many are even saying that this is a typical commodity price increase, and that commodity price increases often last 5 to 10 years, so it looks like we may have to hold onto our seats and get ready to bite this high priced gas bullet for a lot longer - or come up with better alternative energy sources for cars. John McCain’s even jumped in, offering to pay 300 million dollars for an efficient car battery that could help cut down our dependence on “black gold”.

Buffett opened up on the economy and the recession as well, stating, as he had before, that he does believe our economy is in the midst of a recession, and that it is currently only showing signs that it is getting worse, and deeper by the data he has seen from steel and construction companies. I have to agree with him in that I do believe this recession is going to last longer than what most people may think, but I’m also a strong believer in the resilience of the economy and know that we will pull out of this and be in a “bull market” again.