Warren Buffet troubled by the “The Greenback Effect”

August 20th, 2009
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In a recent editorial for The New York Times, Warren Buffett gave credit to the U.S. government’s stimulus plans for helping the economy “out of the emergency room…and on the slow path to recovery.” However, he also talked about the potential unintended side effects of such stimulus, which brings national debt to 13% of GDP (more than twice the peacetime high of 6%). The Obama Administration (and possibly its successors) will be responsible for paying off $1.8 trillion worth of debt, a figure that Mr. Buffett says is extremely difficult even under the best economic circumstances. Although he acknowledges that debt can be useful at healthy levels, Mr. Buffett seems uninterested in knowing what debt level will cause the United States to lose its “financial integrity.”
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For Detailed Investor Profiles on these Investors, click below:
Berkshire Hathaway (Warren Buffett)
Related People: Charles T. Munger; Todd Combs; Warren E. Buffett
Related Entities: Berkshire Hathaway Finance Corp; Berkshire Hathaway Life Insurance; Berkshire Hathaway Reinsurance Group; Bill & Melinda Gates Foundation; GEICO; General Re; MidAmerican Energy Holdings
Related Article Tags: Multi-Strategy, Long Short, Equity, Debt and Global Macro Hedge Fund News

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