US 'medicine will have unwelcome after-effects' says Buffett
Sunday 01 March 2009
Warren Buffett, the long-celebrated oracle of stock market investing, predicted yesterday that the US economy will remain in a "shambles throughout 2009" and "probably well beyond".
The warning appears in a much anticipated letter to shareholders in Berkshire Hathaway, the holding company, which in 2008 suffered a decrease in net worth of $11.5bn (£8bn) – the worst performance since Mr Buffett took control in 1965.
While Mr Buffett pointed to "paralysing fear" that gripped the US economy in the fourth quarter last year, he admitted also that he "did some dumb things", most notably taking a gamble on the energy giant ConocoPhillips just before oil prices collapsed.
While appropriate, he notes that the US government's hugely expensive response to the crisis bears many risks. "Economic medicine that was previously meted out by the cupful has been dispensed by the barrel. These once-unthinkable dosages will almost certainly bring on unwelcome after-effects. One likely consequence is an onslaught of inflation."
He allows himself some optimism, however. "Never forget that our country has faced far worse travails. Without fail, however, we've overcome them."
- 1 James Foley 'beheaded': Isis video shows militant with British accent 'execute US journalist' – and warns Obama of more to come
- 2 ALS ice bucket challenge co-founder Corey Griffin drowns aged 27
- 3 Cilla Black defends Cliff Richard: 'I am positive that the allegations are without foundation'
- 4 Nicki Minaj finally releases predictable 'Anaconda' video
- 5 James Foley 'beheading': Met police warn public watching murder video could be criminal offence
James Foley 'beheaded': PM cuts holiday short for emergency meeting on British response to latest Isis atrocity
Michael Brown shooting: Police shoot and kill second young black man near Ferguson
ALS ice bucket challenge co-founder Corey Griffin drowns aged 27
James Foley 'beheaded': Isis video shows militant with British accent 'execute US journalist' – and warns Obama of more to come
Iraq crisis: Islamic State's message to America - 'We will drown you all in blood'
Scottish independence: English people overwhelmingly want Scotland to stay in the UK
Isis threat: Cameron wants an alliance with Iran
Crisis? What crisis? A visiting US doctor gives the NHS a rave review
Ukip MEP calls for reintroduction of death penalty on fiftieth anniversary of last deaths
Russell Brand calls for Israel boycott: Comedian urges big businesses that 'facilitate the oppression of people in Gaza' to pull funding
Michael Brown shooting: Chaos erupts on the streets of Ferguson after autopsy shows teenager was shot six times – twice in the head
iJobs Money & Business
£45000 per annum: Harrington Starr: Quantitative Analyst (Financial Services, ...
Negotiable: Harrington Starr: Application Support Engineer (C++, .NET, VB, Per...
£450 - £600 per day: Harrington Starr: AIFMD Business Analyst / Consultant - I...
£450 - £600 per day: Harrington Starr: Business Analyst Solvency II SME (Pilla...