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Politics : Sioux Nation -- Ignore unavailable to you. Want to Upgrade?

To: Asymmetric who wrote (162596)	3/9/2009 7:18:56 AM
From: stockman_scott	Respond to of 361857

Berkshire’s Buffett Says Economy has ‘Fallen Off a Cliff’ (Update2) By Erik Holm March 9 (Bloomberg) -- Billionaire Warren Buffett, whose Berkshire Hathaway Inc. posted its worst results ever in 2008, said the economy “has fallen off a cliff” and that efforts to stimulate recovery may lead to inflation higher than the 1970s. The American public is fearful, confused and changing their buying habits, which is showing up at Berkshire’s operating units, Buffett said during an appearance on the CNBC television network today. While the recession will end, the economy “can’t turn around on a dime,” Buffett said, adding that some inflation is appropriate right now. “We are doing things now that are potentially very inflationary,” he said. Buffett called on Congress to unite behind President Barack Obama, comparing the economic crisis to war that needs to be run by a commander-in-chief. Berkshire’s shares have lost almost half their value in the past year as the bear market dragged down financial assets and the recession put pressure on profit from the company’s more than 70 operating businesses. The Geico insurance unit has gained ground while the jewelry units are “just getting killed,” he said. The unemployment rate is likely to climb, he said, without specifying a level. Buffett was ranked the richest man in America by Forbes magazine in October. He transformed Berkshire, based in Omaha, Nebraska, from a failing textile maker into an enterprise with businesses ranging from ice cream and underwear to insurance and corporate jet leasing. Berkshire’s fourth-quarter net income fell 96 percent to $117 million, the firm said Feb. 28. Book value per share, a measure of assets minus liabilities, slipped 9.6 percent for all of 2008, the worst performance under Buffett’s watch, on the declining value of derivatives and the company’s stock portfolio. To contact the reporter on this story: Erik Holm in New York at eholm2@bloomberg.net. Last Updated: March 9, 2009 06:41 EDT