Buffet says, "U.S. Economy had fallen off a cliff".

Excerpts ~ NEW YORK (Reuters) – Warren Buffett said on Monday the U.S. economy had "fallen off a cliff" but would eventually recover, although a rebound could kindle inflation worse than that experienced in the late 1970s. Speaking on CNBC television, the 78-year-old billionaire said the country is experiencing a "close to the worst-case" scenario of falling business activity and rising unemployment, causing consumer confidence and spending to tumble. .... RECOVERY COULD TRIGGER MORE INFLATION Buffett said Americans, including himself, did not predict the severity of home price declines, which led to problems with securitizations and other debt whose value depended on home prices continuing to rise, or at least not plummet. "It was like some kids saying the emperor has no clothes, and then after he says that, he says now that the emperor doesn't have any underwear either," Buffett said. "We want to err on the side next time of not allowing big institutions to get as unchecked on leverage as we have allowed them to do." Consumers too should reduce their reliance on debt such as credit cards, he said. "I can't make moneyborrowing money at 18 or 20 percent," said Buffett, ranked as the second-richest American by Forbes magazine in October. "I'd go broke." ~ End Excerpts Source: http://news.yahoo.com/s/nm/20090309/ts_nm/us_buffett_9 I think he's overly optimistic - whistling in the dark.  Many of the so-called experts.. 'experts' because they are billionaires, have been soft pedaling and mis-calling the prognostications - to the middle class's detriment - and to the elite billionaires' profit.   My humble opinion is that it will be worse than Buffet is saying - but also that the powers that be want us fearful and paralysed in order to do with us what they wish.  Which is to keep us subdued, working and scrabbling if not working and dependent on the government, and thus enriching the elite.  In my humble opinion, that is. Dee          SomaLife International Specializing in Health and Wealth 24 7 One SomaLife at a time! http://SomaLife.net/Roy1