Buffet Bets Against Double Dip

Jul 8, 2011
J. Webster
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Despite the poor jobs report today, Warren Buffett doesn’t believe there will be a double dip. And he amazingly didn’t say this to Becky Quick on CNBC, he actually had an interview with someone else, Betty Liu, of Bloomberg. Anyway, Buffet said he sees growth around the world but no ‘mushrooming’ growth and no signs of a double dip recession. Shockingly, he even called for a housing recovery in a year or so.

“I would bet very heavily against that,” Buffett told Bloomberg Television’s Betty Liu on the “In the Loop” program today after data showed slowing U.S. job growth. “How fast the recovery will come, I don’t know. I see nothing that indicates any kind of a double dip.”

And then there was this WOW quote:

“We will come back big time on employment when residential construction comes back,” Buffett said. The unemployment rate will drop to 6 percent “within a few years,” he said.

6% unemployment rate in a few years? That seems quite soon and quite low.

This is a very glass half full type of optimistic quote by Mr. Buffett. Certainly a different take than say Nouriel Roubini, who sees storm clouds ahead, actually he sees a perfect storm brewing up around 2013 and called the economy a deep ugly swamp.

Perhaps this has something to do with the mountain air up in Sun Valley, Idaho, where the Buffett interview took place. Such hope. Such brightness in his outlook. Maybe we can send Roubini to Sun Valley next year.

Buffett must be the antithesis of Roubini – not that Buffett is overly rosy, but compared to Dr. Doom he’s refreshingly optimistic and nice to hear from. And, he runs a pretty good business to back up all his advice, unlike Roubini, who is an academic.

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