Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Hot on Facebook
Guy Buys $123 Safe on eBay, Finds $26,000 Inside Seller tries to get half the cash back, fails »

US in Recession Now: Buffett

Billionaire says crisis is already here

By Peter Fearon,  Newser Staff

Posted Mar 4, 2008 3:28 AM CST
Email

(Newser) – The US is already in a recession for all practical purposes, even if economic conditions haven't yet met the technical definition of at least two consecutive quarters of negative growth. That's the verdict of billionaire investor Warren Buffett, who tells CNBC that a serious economic slowdown is obvious in reports from retail businesses owned by his holding company.

"By any common-sense definition, we are in a recession," Buffett said. In his annual letter to investors, the 77-year-old financial legend also warns of a looming 4% shrinkage in insurance industry profit margins. "If the winds roar or the earth trembles, results could be far worse," he writes.

Billionaire investor Warren Buffett gestures at a fundraiser for Democratic presidential hopeful, Sen. Hillary Rodham Clinton. (AP Photo/Paul Sakuma)
Billionaire investor Warren Buffett gestures at a fundraiser for Democratic presidential hopeful, Sen. Hillary Rodham Clinton. (AP Photo/Paul Sakuma)   (Associated Press)
Billionaire investor Warren Buffet, interviewed on CNBC, says the US economy is already in recession by common sense definition. (AP Photo/Gerald Herbert, file)
Billionaire investor Warren Buffet, interviewed on CNBC, says the US economy is already in recession by common sense definition. (AP Photo/Gerald Herbert, file)   (Associated Press)
Billionaire investor Warren Buffett says the short term outlook for the US economy is bleak. (AP Photo/ Louis Lanzano, file)
Billionaire investor Warren Buffett says the short term outlook for the US economy is bleak. (AP Photo/ Louis Lanzano, file)   (Associated Press)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

Buffett's View

Buffett to CNBC: U.S. economy in recession by common sense definition
CNBC

Buffett on the economy
Associated Press

 
Warren Buffett • recession • trade deficit • GDP • credit crisis • Berkshire Hathaway • Department of Commerce • annual letter • National Association for Business Economics • GEICO • General Re • insurance industry • profit margins

More Newser Stories

Buffett Has Worst Year Ever

Buffett Poised to Clean Up in Bear Market
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne