Warren Buffett: US Recession "Deeper and Last Longer"

YES. End of discussion.

And this is only the beginning. Oil will continue to rocket upwards in price. Will Americans continue to waddle around at the Wal-Mart buying plastic crap, if the plastic crap costs 10X more than it did in 2000? And will they be willing to pay $10 a gallon for the gasoline to drive their fat bottoms to the Wal-Mart, in their massive trucks?

The economy is certainly not in a recession, because growth is a measure of national past production. Consumers do not feel production, but consumption. If the economy grew by 1%, but population grew by 2% and consumers have been spending beyond their means in the past, this means that the economy could grow while discretionary income shrinks as people pay off debt.

Oh, and since this an economic post, I bet the entire comment section is going to be filled with well-educated coastal urbanites condescending towards poor people who shop at Wal*Mart. Working Americans buying diapers? That's wasteful fat Americans. Rich kids buying Masters degrees in English to work at a non-profit? Ah, that's not wasteful at all.

No recession. Growth has slowed but not stopped or gone negative. Supply and demand is at work.

It seems like a recession, but technically isn't. Although the US has been recieving past indicators of past recessions, such as higher gas prices and the weakening US dollar. The National GDP has not decreased for 2 consecutive quarters and consumer spending has increased.

It's not recession even our President hasn't said it's a recession yet.

We are in an 'orchestrated recession'.

I know a number of Florida millionaires who have told me that this is being manipulated and a lot of it is going to 'suddenly vanish' next November after the election.

They're moving behind the scenes to grab what they can now at bargain prices.....

@secret asian man

best. post. ever.

At this house, it is definitely a recession. Thank you George Bush.

Of course he says we're in a recession, it's good for his business. Of course the media says we're in a recession, it's good for ratings.

I think sometimes you need to look beyond textbook definitions of recession and see the impact the current economy is having on people. And it's a hard one. Many of us (myself included) are already driving small cars, can't afford hybrids or whatever other technology is out there, and, guess what, have no choice but to drive ourselves everywhere! Public transportation is nearly nonexistent. You can't get to work, the store, any socializing you want to do without a car.

And heaven forbid (@Eric Barbour) that we buy plastic things. We don't all have a garden, cotton field, spinning wheel... Then again, I doubt you do either.

It's also getting frustrating how the cost of gas is trickling into seemingly every industry. Prices are rising due to the cost of transport. Fewer people are traveling, meaning that tourist destinations and dog boarding services suffer. We can't break our dependence on oil overnight, but prices rise rise rise every day.

The partisan media will continue to call it a recession until November.

It's all about getting a Democrat into the White House.

SecretAsianMan, nice points. You hit the Wal Mart angle pretty well, the guy above you gave them a good sneer.

I will say whatever we call it, the real estate bubble bursting and high gas prices are affecting people.

We have been in a recession for several months now. Don’t rely on the media or government officials to tell you the truth.

The state of our economy is certainly declining and we are definitely headed toward a DEPRESSION [an economic state characterized by unemployment and low levels of trade and investment].

Remember the Great Depression which began in October 1929 and lasted until World War II. Unemployment had risen from 8 million to 15 million. Banks, stores, and factories were closed which left millions of Americans jobless, homeless, and penniless. Many people came to depend on the government or charity to provide them with food.

The Great Depression was caused by an imbalance of wealth created by an unstable economy based upon an unequal distribution of wealth and stock market speculation which kept the stock market artificially high.

In my humble opinion, we are headed toward a Greater Depression.

"Deeper and last longer"

...in bed!

@ Evil Pundit--It isn't the Democrats who started a war of agression based on lies to protect oil interests. The last Democratic president left a surplus, as I recall, after inheriting the Reagan/Bush 1 deficit. Bush 2 is going to leave the biggest deficit in history. If Bush 3 (McCain) is elected, we'll continue the war, until our economy is ruined. If a Democrat (I hope it's Barack Obama) is elected, we have some hope of beginning to dig ourselves out of this recession before it becomes the Greatest Depression.

Well, if you have to ask, then...

I'm with Gerry. Call in your debtors, tighten up on loans, restrict the money supply and scoop up the pieces that fall. When things pick up, struggling people will work their butts off to make up, thus generating more wealth to skim.

You've just proved my point, Barbwire.

The talk of recession is all part of a political move by Democrat supporters.

recession or not (the argument is semantical), we're in a severe economic decline and everyone is feeling its effects. you don't need a rich guy or a fox news anchor or f-ing stephen hawking to tell you that. end of story.

http://www.blunun.com/dubya/bush-econ.jpg

When did politics become part of this?

Barbwire:

"It isn't the Democrats who started a war of agression based on lies to protect oil interests."

Ahhh! One of the great leftist memes, regurgitated once again.

The war just to "protect oil interests" - how much a barrel now?

Do ya think there may have been another motive? Anyone? Beuller? Anyone?

I wish everyone in America good luck with whatever is coming.
You'll be in my thoughts.

The USA is heading to a hyperinflationary depression, further it's not a left versus right issue, this has been brewing for 20 years.
http://www.netcastdaily.com/broadcast/fsn2008-0105-3b.mp3
http://www.netcastdaily.com/broadcast/fsn2008-0119-3a.mp3

Can someone /please/ sum up what a recession is, and how it would affect a small town in 3-6 sentences?

Remember, the masonic hands that control the puppets we see on our television screens view the world as a giant chessboard. You're all part of a bigger game and you best believe that EVERYTHING is orchestrated, and how much money you do or don't have will never change the fact that we're their slaves unless we make the decision to not be. If you don't believe that you currently exist in slavery, whip out your birth certificate and look at the red numbers in the bottom left hand corner. Take those numbers to a stock broker and have him/her run them. You will find that there is stock on YOU but you don't own it... Nevermind the b/s soap opera they force down your throat with media... question yourselves on how much longer you'll let them control you and your children. You are profane and unworthy vermin to them. They think they're better than all of us. Who are they? WAKE UP.