Warren Buffett: "We're Still in a Recession"

In this Feb. 22, 2010 photo, Berkshire Hathaway Chairman and CEO Warren Buffett is interviewed before lunch with officials from Salida Capital, a Canadian Investment firm, in New York.

(Credit: AP Photo)

(CBS/AP) A leading economic research group has pronounced the U.S. officially emerged from the "great recession" more than a year ago, but billionaire investor Warren Buffett begs to differ.

"We're still in a recession," the Oracle of Omaha told CNBC Thursday. "We're not gonna be out of it for a while, but we will get out."

The National Burea of Economic Research said Monday that country's 18-month long recession ended in June 2009. But Buffett uses a different criteria for evaluating the U.S. recovery, saying the recession will be over once real per capita gross domestic product returns to pre-recession levels.

Buffett also told CNBC that the government "did the right thing in terms of getting the economy going again."

"It can't do it overnight or anything of the sort," he said.

The country's sluggish recovery has become a central theme heading into November's midterm elections, with the Obama administration and congressional Democrats taking significant heat over an unemployment rate that has hovered in the area of 10 percent.

See Treasury Secretary Timothy Geithner's interview with Katie Couric on the state of the economy

During a town hall meeting Monday, a woman named Velma Hart captured the country's frustration in an exchange with President Obama.

I'm one of your middle-class Americans, and, quite frankly, I'm exhausted," said Hart, the chief financial officer of AMVETS in Washington. "I'm exhausted of defending you, defending your administration, defending the mantle of change that I voted for and deeply disappointed with where we are right now."

"I understand your frustration," Mr. Obama responded. "My goal is not to convince you that everything is where it ought to be. It's not." Still, he added: "We're moving in the right direction."

The NBER's opinion on the end of the recession factors figures that make up the nation's gross domestic product, which measures the total value of goods and services produced within the United States. It also reviews incomes, employment and industrial activity.

The economy started growing again in the July-to-September quarter of 2009 after contracting just 0.7 percent the previous quarter - a far less dramatic decline than in the preceding three quarters.

The economy lost 7.3 million jobs in the 2007-2009 recession, also the most in the post World War II period.

"I voted for a man who said he was going to change things in a meaningful way for the middle class. I am one of those people. And I'm waiting, Sir. ... I don't feel it yet," said Hart. "Is this my new reality?"

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[waygone]

Why anybody thinks the Republicans can do any better is just nuts.

[datarevenue]

Mr Buffet may want to weigh in on how much impact the de-monetization of media and information (copyright industries) via the Internet has affected our economy. Interesting perspective here - http://www.free-press-release.com/news-ten-things-to-think-about-in-this-struggling-economy-copyright-industries-1285372980.html

[magnumdr]

No were not didn't you hear what those economists said, we are all ok.

[Parsifal_tx]

Even though I don't share his political perspective, I have total respect for Warren Buffett and his financial keenness. I agree with him we're not out yet, but I believe once conservatives take control of congress then we will see the light. If anytime is a good time to buy stock, it's been the last 18 months and probably the next 12 months. Many great businesses are still severely undervalued that can be purchased at rock bottom prices.

[RobAla]

Democrats of late have been big on quoting Buffet's comments regarding the rich. I wonder how many of them will echo these statements. Some economists think that we hit bottom in the recession over a year ago. It is obvious to anyone that we are still sitting in the bottom of the hole. I also think that most Americans understand that the last 20 months have been a failure.

As for the President and Velma Hart, President Obama knows nothing of the frustrations of Americans. He is totally insulated from the effects of this horrible economy. He really does not "fell our pain".

[thadius5]

Warren, go home and count your money. What do you know or even care about this country or a recession?

[spaceatoms]

The government did not do the right thing, first the only people bailed out were the so called people that owned stock, hence Warren Buffet. I was counting on a deflation of the dollar making what little I had out there worth more money. I am not going to get into who owns stock versus who doesn't own stock. The second reason are the banks, I can remember going into a bank and putting everything on the line including house, savings, and retirement to start a business, if I had not been successful, then I would have lost everything, that's the spirit of capitalism, not casino type returns like the summer of 2009 as Wall Street bounced back, there was no justifying the bailout as there is still no underlying reason like computers and towns sprawling to sustain the push. Third, the constitution was totally pushed out of the way as more than a handful of communistic countries now have been investments in the U.S.A. and that was the major difference versus the 1920's and 1960's. Fourth, one has to ask where it leads to in a few years with a staggering debt and jobless rate still high. Fifth, the criminals that bilked the derivatives market were not punished thoroughly and that devalued the dollar. Sixth, Washington is only responsible for laws to protect the country and although they should be aware of the economy, it should not be the major focus. I voted for President Obama and it was not the expected return to glory that was given to the people, instead it has been a government overtake of the free system. I am voting Repbulican at whatever the costs next time or maybe even Tea Party, but no way will I vote democrat, its life not a girls shopping spree!

[two-cats]

Velma Hart has made it clear that she supports the president in subsequent interviews. CBS keeps repeating her initial remarks without telling the whole story. Yes, everyone wants the country to move faster, but as Warren Buffet reminds us, it takes time to come out of the worst recession since the Great Depression.
To put the Republicans back in power is stupid...it their policies on deregulation that have caused all the problems, not only in the financial sector but in the oil sector as well...and there are other time bombs just waiting to explode out there! BP did as it pleased, and the Gulf Spill disaster is the result...Wall Street did as it pleased, and the bottom fell out of the financial markets.

[rwsmith29456]

This guy is right. Whoever made the comment that the recession was over in 2009 must be on happy drugs.

[AnnieDanny]

Thank you Warren Buffet!! Thank you, thank you! I was angry with the economists who said we came out of recession in June 2009. Personally I think they're not with reality.