Buffett Says the U.S. Is in Midst of an ‘Economic Pearl Harbor’

It is absolutely true that the U.S. is facing an ‘Economic Pearl Harbor’ … or an ‘Economic 9/11’.

Buffett said Barack Obama is “the absolute right commander in chief”….for the elite and the banksters.

“It’s never paid to bet against America…”
Oh, really? Maybe you should ask all the those people who made billions of dollars shorting Fanny Mae, Freddie Mac, AIG, Lehman Brothers, General Motors, Chrysler, Citigroup, Wachovia, Washington Mutual, Bank of America etc.

America is broke.

Source: Bloomberg

Billionaire investor Warren Buffett, chairman of Berkshire Hathaway, pauses during an interview in New York on June 25, 2008. Photographer: Daniel Acker/Bloomberg News

Jan. 19 (Bloomberg) — The U.S. is facing an “economic Pearl Harbor” that has spread fear throughout the country, billionaire investor Warren Buffett told Tom Brokaw in an interview broadcast yesterday on Dateline NBC.

“We have a negative feedback cycle going on right now,” Buffett said, according to a transcript of the interview on CNBC’s Web site. “We have fear which leads to people not wanting to spend, and not wanting to make investments. And that leads to more fear.”

Buffett, the chairman of Berkshire Hathaway Inc., said Barack Obama is “the absolute right commander in chief” to guide the country through the financial crisis. Obama, 47, will be sworn in as the 44th U.S. president tomorrow in Washington.

He can “convey to the American people what needs to be done, not to expect miracles, that it’s going to take time,” Buffett, 78, said in the interview.

Buffett declined to predict how long the economy will remain under duress, except to say that he doesn’t expect a recovery to take five years. He contrasted the current economic crisis with the period “three or four years ago,” when “everybody lent you more and more on a house that kept going up, and you could keep spending money you didn’t have.”

Buffett said the economic slump is the worst since World War II, though not as severe as the Great Depression. He said “it’s never paid to bet against America,” and that the country would come through the crisis. “But it’s not always a smooth ride.”

Last Updated: January 19, 2009 09:15 EST
By Frank Connelly

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