Stimulus and Viagra..just another day of Buffett wordplay
This morning, Warren Buffett, head honcho at Berkshire Hathaway, shared some thoughts about the economy on "Good Morning America." He said he wouldn't be surprised (but is not predicting) if unemployment reached 11% and that a second economic stimulus package might be needed.
Some quotes from his brief interview:
"We're not in a freefall, but we're not in a recovery either. We were in a freefall, really, in the last quarter of the last year, starting in the financial markets and then spreading to the economy. And we had this huge change in behavior, that change hasn't changed."
"I want to emphasize that we're going to come out of this. The best days of America by far, lie ahead. But not next week or next month, I don't exactly [know] when we will come. We will come out big time."
"A stimulus is the right thing. You hope it doesn't get watered down in many ways. Our first stimulus bill, it seemed to me, was like taking a half a tablet of Viagra and then having also a bunch of candy mixed in, as everybody was putting things in for their own constiutencies, it doesn't have really quite the wallop that might have been anticipated."
"I don't think [TARP] was done in a very sophisticated way, but I think anything that restored confidence was probably useful, even if there might have been a fair amount of window dressing to it."
"I do not like the idea of any kind of a plan [public-private plan] involving the government where Wall Street makes a lot of money...I think Wall Street owes the American people one at this point."
What do you think about Buffett's comments? Let me know below.
-- Katrina, doesn't own shares