Second stimulus might be needed as we are not yet in a recovery, says Warren Buffett Source: BI-ME and Reuters , Author: BI-ME staff
Posted: Thu July 9, 2009 10:02 pm
INTERNATIONAL. Legendary investor Warren Buffett said in an interview aired on Thursday US unemployment could hit 11% and a second stimulus package might be needed as the economy struggles to recover from recession.
"We're not in a freefall, but we're not in a recovery either," he told ABC's "Good Morning America."
"We were in a freefall really in the last quarter of last year, starting in the financial markets and spreading to the economy, and we had this huge change in behavior."
Buffett, a supporter of President Barack Obama during last year's election campaign, said a second economic stimulus package might be needed. The Obama administration says it does not see a need for a second stimulus yet.
"I think a second one may well be called for. It is not a panacea. A stimulus is the right thing. You hope it doesn't get watered down," he said.
He likened the first US$787 billion stimulus package passed by Congress to "half a tablet of Viagra and then having also a bunch of candy mixed in. It doesn't have really quite the wallop."
Buffett said unemployment had "a ways to go" and he would not be surprised to see it hit 11% before it recovers.
"I'm not predicting it but no that would not surprise me," he said of the 11% figure.
We're going to come out of this better than ever, the best days of America lie ahead but not next week or next month," he said.
INTERNATIONAL. Legendary investor Warren Buffett said in an interview aired on Thursday US unemployment could hit 11% and a second stimulus package might be needed as the economy struggles to recover from recession.
"We're not in a freefall, but we're not in a recovery either," he told ABC's "Good Morning America."
"We were in a freefall really in the last quarter of last year, starting in the financial markets and spreading to the economy, and we had this huge change in behavior."
Buffett, a supporter of President Barack Obama during last year's election campaign, said a second economic stimulus package might be needed. The Obama administration says it does not see a need for a second stimulus yet.
"I think a second one may well be called for. It is not a panacea. A stimulus is the right thing. You hope it doesn't get watered down," he said.
He likened the first US$787 billion stimulus package passed by Congress to "half a tablet of Viagra and then having also a bunch of candy mixed in. It doesn't have really quite the wallop."
Buffett said unemployment had "a ways to go" and he would not be surprised to see it hit 11% before it recovers.
"I'm not predicting it but no that would not surprise me," he said of the 11% figure.
We're going to come out of this better than ever, the best days of America lie ahead but not next week or next month," he said.
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