Buffett Expresses Views on Economy

Gazillionaire Warren Buffett is talking about the economy, and as usual, when the guru of investing and economics talks, everyone listens. Buffett says that he believes we will still be in what he calls a recession (although some economists have rebuffed that claim because it may not meet the technical definition of a recession which is so many consecutive weeks of downturn and a decrease in domestic product) several months from now, although he has hopes that the economy will be looking stronger in five years or so.

He says that he believes that the mortgage giants such as Fannie Mae and Freddie Mac may remain solvent, however, most likely not without a lot of help from the government and other non privately held entities since the scope of help would be so huge. Buffett has always said he is a long term “bull” when it comes to the US economy, even with short term bear trends and that he always believes the strength of the American economy will bounce back with a vengeance simply because it is too large to just collapse.

Buffett’s comments are always seeked when we are in financial dire straits, especially in recent years where he seems to have earned a sort of wise soothsayer standing because of not only his age but the testament to how standing steady even during tought economic times can stand to make you a lot of money as time goes on, and how it’s the people who panic sell when the first sign of bad news comes that usually end up in the whole when it comes to playing the stock market.

Buffett is known for buying and holding stocks for years and years, and has made a lot of money from doing so over the years, earning him a status of someone who is not only patient, but also someone who knows which companies are set to weather the ups and downs of the economy. He overtook Bill Gates as the richest man in America fairly recently, and his comments and views are seeked on everything from different stocks to the future of the US economy.