[quote]Originally posted by TonieX
I suppose Warren Buffett is a moron too. Here's what he has said recently about whether or not we're in a recession...
He said the United States was "already in recession" and added: "Perhaps not in the sense that economists would define it" with two consecutive quarters of negative growth.
"But the people are already feeling the effects," said Buffett, the world's richest man. "It will be deeper and last longer than many think."
http://news.yahoo.com/...h.WKs5GhZHq5NamyBhIF
http://www.cnbc.com/id/23446988/ [/quote]
Take it away Jenna Banks:
"When speaking of "truth" and "fact" in your posts and discussions....remember that your opinion is just that, an opinion." -- Jenna Banks
Actually, anybody that thinks that Warren Buffett believes that is a moron. He didn't say that because he honest to God felt that we were in a recession.
He made that comment to investors and business owners.
He said that to spook investors into taking a course of action he hopped they'd take. He wanted more people to start selling. If he scares the right people, and they stop expanding their business, and hiring, because of what he said, then he stands to gain.
People, taking "purchasing" and "banking" courses of action they'd normally take, to cushion against a recession, end up indirectly helping Warrant Buffet's investments.
There's a good chance that he held stocks that benefit when people try to cushion themselves against a recession.
There are investments that do well when the market goes up. There are also investments that go UP when the market goes down.
Warren Buffet stood to gain if people acted in mass to cause the market to go down... or acted in mass to shift their capital to businesses and companies that Warren Buffett had invested in.
He isn't stupid. He wouldn't say that if his assets and investments depended on the economy not going into a recession.
He said that we were in a recession, in the common sense term of the word. His justification was that people on the lower income bracket were already hurting.
Well, I was on the lower income bracket when he said that. I didn't feel like we were in a recession. Many of the people that I talked to, who were in the lower income bracket, didn't feel that way either.
So, if you want to use the common sense definition of the term, you're going to get conflicting arguments.
Notice that in that same report, he said that the US economy would do fine over the long run. He said that in 2008.
Guess what? It didn't. The only way our economy "recovered," since then was with the Government pumping more money into the economy. It wasn't long lasting. The "stellar" jobs number for August 2011, and increasing talks of a double dip recession, proved Warren Buffett wrong.
But again, he was more interested in spooking people to act in mass... to benefit his investments... than he was in making an honest to God accurate economic outlook.
The real deal is worse than that. When the dollar and government credit bubble busts, the whole world is going to sink into a mega depression.
It's a good thing that Jenna Banks agreed with this. If she didn't, she'd dismiss him as just making an opinion.
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