Buffett Says No Improvement Until 2009

Warren Buffett, one of the most highly powered investors in the US, says that the US economy is unlikely to improve again until 2009.

Warren Buffett, one of the most highly powered investors in the US, says that the US economy is unlikely to improve again until 2009. He also said that stocks appear to be a much better value than they were a year ago.

The billionaire Buffett, head of Berkshire Hathaway, has said that if the US Government were to bail out Freddie and Fannie, it would likely include a reorganization and a loss of value for shareholders. Mr. Buffett has said that housing subsidiaries of Berkshire Hathaway are struggling as the economy recovers from the overindulgence during the housing glut. He compared Wall Street's past dealings with the mortgage crisis to “a nudist beach,” where, “...you always find out who's been swimming naked when the tide goes out.”

However, Mr. Buffett also said that Berkshire Hathaway has backed off of its $21 billion bet against the US Dollar. That movement helped boost the dollar in Friday's trading. Apparently, Berkshire Hathaway will be boosting its positions in either AMEX or Wells Fargo, but there is no news as to which one will get the nod. On the news, the shares of both companies rose in early trading, in line with the other stock indexes. Buffett has also reiterated his support for Barack Obama, but has also restated his admiration for John McCain.