Buffett: Deal with deficit after U.S. economy recovers

[TomCADem]

I am somewhat surprised that Warren Buffet sounds more like Paul Krugman than a Republican born again deficit hawk who thinks that the key to recovery is to immediately slash government spending in the midst of a recession.

http://finance.yahoo.com/news/Buffett-Deal-with-deficit-cnnm-3563680643.html?x=0

Buffett: Deal with deficit after U.S. economy recovers

In an interview with Charlie Rose, Buffett said if the United States keeps flooding the world with its debt, countries will eventually notice that U.S. fiscal policies are "out of control" and become "less and less and less enthused" about lending to it.

But the CEO of Berkshire Hathaway added that though the United States will want to act "fairly soon" to cut the deficit, it has to wait until the economy comes back.

"We want to put out the fire," he said. "Then we want to quit squirting water on those buildings. We have to know when the fire's out."

And how will we know?

"Well, it will be retail sales. It'll be automobile sales. It'll be when home construction starts coming back," Buffett said, adding that the signs might not be recognized until three or four months after the fact. Still, it could happen in the next two years.

[pnwmom]

1. He's a smart man. n/t

[Name removed]

2. Deleted message

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[fasttense]

3. I don't like Buffet but what he said is smart. n/t