In an opinion column published in the New York Times today, billionaire investor Warren Buffet said the U.S. economy appears on a slow path to recovery, and he also added he “resoundingly approves” of the actions taken by the Federal Reserve and the Bush and Obama administrations to pump trillions of dollars into the financial system. However, Buffett also warned the nation’s debt must be dealt with to avoid an erosion of U.S. purchasing power:
“The United States economy is now out of the emergency room and appears to be on a slow path to recovery,” Buffett wrote.
“But enormous dosages of monetary medicine continue to be administered and, before long, we will need to deal with their side effects. For now, most of those effects are invisible and could indeed remain latent for a long time. Still, their threat may be as ominous as that posed by the financial crisis itself.”
It’s certainly encouraging to hear someone as savvy as Warren Buffett say the economy is on the path to recovery, and one can only hope we’ll stay on that path until the economy is fully back on track.
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