Bush Rebuffed By Buffett

Last week, President Bush said America is not in a recession, which I didn't agree with, as written about in my Column here.

This week, Warren Buffett, one of America's greatest financial minds, said America is in a recession. You heard that, President Bush.

A man well known in domestic and international financial circles, who can pronounce the word "situation" and exit the room without walking into the door, said America is in a recession.

Berkshire Hathaway is one of America's most profitable companies. Buffet said on CNBC and I quote, "I would say, by any commonsense definition, we are in a recession."

Based on what I believed was coming (that has now happened), I wrote about the U.S. economy a year and a half ago (here), 6 months ago (here) and last week again (here), because the president seemed to be in another world on the issue.

What is most concerning about Bush is he seems to be in denial, which is dangerous considering the state of the U.S. economy. People in denial don't solve problems, because they don't believe there are any (problems), and that's how circumstances get worse.

That's like a person who has cancer being in denial that there is anything wrong with their health and not getting the treatment they need to beat it.

Not only are there problems with the mortgage crisis, the dollar hit a new historic low today against the Euro and oil climbed to $104 a barrel (link). There is also an article in the Telegraph today stating, "The Fed's emergency rate cuts in January have failed to halt the downward spiral towards a full-blown debt deflation."

If the president doesn't think that is a problem, he is delusional. Problems don't fix themselves.

Buffett: US Essentially in Recession

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.

"I would say, by any commonsense definition, we are in a recession," Buffett said on CNBC. But Buffett said it's not clear how far the recession will go because that is difficult to predict. http://ap.google.com

The Federal Reserve's rescue has failed

The verdict is in. The Fed's emergency rate cuts in January have failed to halt the downward spiral towards a full-blown debt deflation. Much more drastic action will be needed. http://www.telegraph.co.uk