Buffett: Subprime problems not big economic threat

NF Reporter · 05-05-2007, 02:55 PM

Reuters - Warren Buffett said on Saturday problems in the U.S. subprime lending industry were unlikely to pose a major threat to the overall U.S. economy.

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waltky · 09-12-2007, 07:36 AM

Maybe ol' Warren needs to take a second look...

Euro central bank pumps money into system
Tuesday 11th September, 2007 The European Central Bank has allotted US$371 billion in a refinancing operation to help banks meet their minimum reserve requirements over the next week.

Quote:

The ECB also moved to absorb money it had pumped into the market in recent weeks to avoid a credit crunch.

Both moves appeared to show that tensions persist on the markets, which have been rocked in recent weeks by the collapse of the U.S market for high-risk subprime home loans.

Central banks have pumped massive amounts of cash into money markets since August 9 following the deep difficulties in the subprime sector, so that commercial banks can continue to extend credit on which the global economy depends.

Euro central bank pumps money into system

NoTx · 09-12-2007, 07:07 PM

I second the need to take a second look. It is a freaking disaster.

waltky · 04-28-2008, 10:35 PM

Ol Warren changin' his tune...

Buffett says recession may be worse than feared
Mon., April. 28, 2008 - Billionaire investor thinks downturn may last longer

Quote:

Warren Buffett, the world's richest person, said on Monday the U.S. economy is in a recession that will be more severe than most people expect. Buffett made his comments on CNBC television after his Berkshire Hathaway Inc. agreed to invest $6.5 billion in the takeover of chewing gum maker Wm. Wrigley Jr. Co. by Mars Inc. in a $23 billion transaction. "This is not a field of specialty for me, but my general feeling is that the recession will be longer and deeper than most people think," Buffett said. "This will not be short and shallow.

"I think consumers are feeling gas and food prices," he added, "and not feeling they've got a lot of money for other things." He was not immediately available for further comment. Known for his frugality, the 77-year-old Buffett has lived in the same 10-room Omaha, Neb. house for a half-century, despite being worth an estimated $62 billion.

On Wednesday, the U.S. Commerce Department is expected to say how fast the economy grew in the first quarter. Economists on average have projected that gross domestic product grew at an annualized 0.2 percent rate in the quarter. Two quarters of declining GDP is a traditional indicator of recession. That last happened in 2001. Economists expect the U.S. Federal Reserve on Wednesday to cut a key lending rate for a seventh time beginning last September.

More Buffett says recession may be worse than feared - Stocks & economy - MSNBC.com

waltky · 05-25-2008, 06:57 PM

Ol' Warren eatin' his words...

Buffet believes the recession is here
Sunday 25th May, 2008 - The world's richest man has made his own decision about America’s current economic status.

Quote:

Warren Buffett has told the German magazine Der Spiegel the US is already in recession. Buffett, the 77-year-old chief of the Berkshire Hathaway company, on a trip to Germany, said the effect of the so-called recession would be deeper and longer than people think.

He blamed financial institutions for introducing instruments they could no longer control.

US economic growth has slowed dramatically in recent months and a growing number of economists believe the world's largest economy will experience a recession during 2008 amidst the current credit crunch.

Buffet believes the recession is here