Warren Buffett of Berkshire Hathaway Inc. (NYSE: BRK.A) (NYSE: BRK.B) is essentially supporting a second stimulus package. He gave an interview to ABC’s “Good Morning America” and said that the economy is not in free fall but not in a recovery either. He thinks 2009 is going to be a very rough year.
He went as far as to call the first stimulus package a half a tablet of Viagra and having a bunch of candy mixed in… it doesn’t have the intended effect. He also noted that TARP was not done in a very sophisticated way.
Buffett still maintains that the U.S. will come out of this better than ever and the best days of America are ahead. While that belief of Mr. Buffett may or may not be true, it is hard to not consider how much the rest of the world has caught up to us in the last generation and the last decade.
If you wonder whether or not a second stimulus package would be self-serving for Buffett, don’t give it too much thought. Of course it is self-serving. All you have to do is look through his most recent holdings and most recent investments to see how Buffett’s empire would win from it.
The ABC interview can be seen at http://abcnews.go.com/GMA/
Jon C. Ogg
July 9, 2009