Loading ...
Sorry, an error occurred while loading the content.

Buffett: Persistent Stagflation Ahead

Expand Messages
  • Eric Reinhardt
    ... From: MoneyNews.com Subject: Buffett: Persistent Stagflation Ahead To: ericreinhardt2003@yahoo.com
    Message 1 of 1 , Jul 5, 2008
    • 0 Attachment


      --- On Fri, 7/4/08, MoneyNews.com <newsmax@...> wrote:
      From: MoneyNews.com <newsmax@...>
      Subject: Buffett: Persistent Stagflation Ahead
      To: "ericreinhardt2003@..." <ericreinhardt2003@...>
      Date: Friday, July 4, 2008, 2:04 PM


      Breaking News from MoneyNews.com

      Buffett: Persistent Stagflation Ahead

      The U.S. economy suffers from stagflation that’s going to get worse and may not end this year or even next, says investment icon Warren Buffett.

      “We’re right in the middle of it right now,” the chairman of Berkshire Hathaway told Bloomberg Television recently.

      “I think the ‘flation’ part will heat up, and I think the ‘stag’ part will get worse.”

      While Buffett didn’t cite the reasons for his pessimism, he has said elsewhere that the housing meltdown and sagging retail sales are dragging the economy down.

      On other topics, Buffett says the Federal Reserve is unlikely to have to bail out Lehman Brothers like it did Bear Stearns.

      Story continues below . . .

      Dividends That Make A Huge Difference

      Saving for retirement and being able to live the quality of life you've earned has become increasingly challenging, especially in today's climate. Unfortunately the biggest losers of this latest interest-rate slashing campaign are those in or near retirement who rely on CDs, bonds, Treasuries or money markets to generate monthly income or to keep their nest eggs growing.

      And, unlike financial institutions, no one seems to be offering John or Jane Doe bailouts so that they can erase past mistakes to better their quality of lives. The stock market is volatile and downright scary right now. So, how can you generate income and grow your nest egg without taking on an unacceptable level of risk?

      Get the FREE special report “Retire Sooner With High Yield Income Investments” from Max Whitmore. In this bulletin Max reveals the names of 3 stocks delivering 10% to 15% dividends. It's an investment strategy that can mean the difference between living in a house on wheels and living in one with an ocean view. Get yours now.

      “The fact that they intervened on Bear Stearns prevents them from needing to intervene on other large investment banks,” he says.

      “The very act of the fire engine showing up when there was a fire means that other fires won’t break out in this particular case.”

      That doesn’t mean that Wall Street investment banks won’t lose a lot of money, Buffett points out. “But in terms of a threat to the system,” that has passed, Buffett says.

      “I think the Fed did absolutely the right thing. If they hadn’t done what they did on Sunday [bailing out Bear Stearns], they would have had to do something else on Monday, and it would have been a lot worse.”

      Berkshire is the second biggest shareholder of Anheuser-Busch, which has received a $46.3 billion takeover offer from Belgium’s InBev.

      Editor’s Note: Warren Buffett's Top 39 Stock Picks Revealed 

      Buffett was mum on how he views the offer.

      “I may have an opinion, but I haven’t commented to anyone,” he says. “I’ve been reported to be in St. Louis, I’ve been reported to be at dinner with August Busch IV,” the company’s CEO.

      “There must be some guy in St. Louis that looks a lot like me, because I have not been in St. Louis since this started,” Buffett says.

      Buffett says the government should be helping those who are suffering most from the economy’s troubles. “We have a very prosperous economy, with $47,000 in GDP per person,” Buffett notes.

      “We can take care of people with safety nets. We can do more and will do more to help people on the short end of the stick.”

      Buffett supports Barack Obama for president because of the Democrat’s advocacy for the poor.

      “He will have more concern for the people who don’t get the lucky breaks in life like I’ve gotten,” says Buffett who’s ranked by Forbes magazine as among the richest men in the world.

      “Some 20 percent of U.S. households, almost 60 million people, are living on $21,000 per year in income. I invite anyone to live on that. I think Barack Obama is more concerned about that than the present administration.”

      Editor's Notes:



        This e-mail is never sent unsolicited. You have received this Newsmax e-mail because you subscribed to it or someone forwarded it to you. To opt out, see the links below.


        TO ADVERTISE

        For information on advertising at Newsmax.com, please contact Newsmax Advertising Sales via e-mail.

        TO SUBSCRIBE

        If this News Alert has been forwarded to you and would like a subscription, please sign up for Newsmax e-mail alerts.

        Remove your e-mail address from our list or modify your profile. We respect your right to privacy. View our policy.

        This e-mail was sent by:
        Newsmax.com
        4152 West Blue Heron Blvd, Ste 1114
        Riviera Beach, FL, 33404 USA

        281167
        6531-1


      Your message has been successfully submitted and would be delivered to recipients shortly.