March 3, 2008 –
Out of Omaha, Nebraska, this story was picked up by the major global news services today:
“OMAHA, Neb. (AP) — Billionaire Warren Buffett said Monday that the U.S. economy is essentially in a recession even if it hasn’t met the technical definition of one yet. Buffett said in an interview with cable network CNBC the reports he gets from the retail businesses his holding company owns show a significant slowdown in purchases. The chairman and CEO of Omaha-based Berkshire Hathaway Inc. said millions of people have also lost equity in their homes because home prices have dropped.
The technical definition of a recession most economists use is two consecutive quarters of negative growth in the nation’s gross domestic product. “I would say, by any commonsense definition, we are in a recession,” Buffett said on CNBC.
Four weeks earlier, I wrote an article on this very blog called, “Is Recession in the U.S. Coming? We’re Already in One”, that received almost zero attention even though, in essence, I said exactly the same thing Warren Buffet said. And thus, this is just another example of people needing someone famous to say something to consider it newsworthy or more importantly, trustworthy. I’ve already given you a plethora of reasons on this blog as to why you can never trust the commercial investment industry, yet when Goldman Sachs declared shorting gold as one of their top 10 trades at the end of last year and gave price targets of $600 to $650 an ounce, thousands and thousands of the sheep herd worldwide undoubtedly sold out of their positions in gold upon this stark pronouncement regarding the doomed future of gold by such a huge investment “authority”
As I only have about 10 free minutes today, this will unfortunately be an extremely abbreviated entry; however, there’s plenty more online at this blog to read about the truth of the underlying economy and premium, information here for our subscribers only about how to make a fortune from this coming global economic crisis.
[tags]economic crisis, U.S. recession, U.S. bear market[/tags]