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Buffett says US is in recession
27.05.08
Billionaire investor Warren Buffett says the US is
already in recession, presenting a gloomier view
than many observers.
He said the US retreat could be worse than expected. In an interview in Germany, where he has been looking for acquisition targets, he said
that as far as the average person is concerned, the economy is already going backwards.
“I believe that we are already in a recession,” Buffet said. “Perhaps not in the sense as defined by economists...But people are already feeling the
effects of a recession. It will be deeper and longer than what many think.”
His comments clash with those by former Federal
Reserve chairman Alan Greenspan, who says the US is still more likely than not to have a recession despite relative stabilisation in the economy in recent weeks.
“I still believe there is a greater than 50% probability of recession,” Greenspan said. “That probability has receded a little and I think the
probability of a severe recession has come down
markedly.”
