By: Roshawn Watson
In yesterday’s
Uncommon Money News, I mentioned that billionaire Warren Buffet recently stated that he believes the US is in recession. Although economists may argue that the United States GDP has not gone down for two consecutive quarters, Buffet argues that “people are already feeling the effects of a recession… (and) it will be deeper and longer than what many think.” As
Forbes’ current richest man in the world, perhaps Buffet may know a thing or two about the U.S. economy.
Still in the interest of balance, I must say that not all financial pundits agree. For example, Dave Ramsey has frequently said that we are not in a recession although he admits that US economic growth has slowed (see video below for more of Ramsey’s insights). Technically, most economist would agree with him. Additionally, he believes that even if we were (in a recession), that’s often the best time to invest! Thus, everyone should stay the course on his or her investment strategies, as long as they’ve proven successful!
http://www.youtube.com/get_player
Moreover, Suze Orman says arguing over whether the US is in recession is not as important as knowing that currently YOUR dollars are receding (
listen to her commentary here). Her sensible argument is congruent with Warren Buffet’s assessment. Since the purchasing power of the dollar has diminished, groceries, gold, gas, and other goods have accordingly gone up. In the end, that’s what really matters: the purchasing power of YOUR dollars. Instead of asking “are we in recession,” maybe the more appropriate question is “how can I recession-proof my life?’
Copyright 2008, Roshawn Watson, Pharm.D. All Rights Reserved.
Lastly, if you like this post, please subscribe to this blog (upper right hand corner) and Propel it, Stumble it, and tag it on Delicious.
Related Posts
Uncommon Money News (Vol 14)
Response to the Impending Destruction of The US Economy
Notorious <a href="http://www.google.com/search?hl=en&q=%22warren+buffett%22+democratic" rel="nofollow">activist for the Democratic Party (and, therefore, <a href="http://www.conservativebookservice.com/products/bookpage.asp?prod_cd=C5866&sour_cd=MRB000101" rel="nofollow">media darling), Warren Buffet, <a href="http://biz.yahoo.com/ap/080526/germany_buffett.html?.v=2" rel="nofollow">continues to pimp for an imaginary recession.Imaginary? Yep! Even Buffett admits that his imaginary recession is:“not [a recession] in the sense as defined by economists”Rather, the #1 Democratic cheer leader for the imaginary recession declared it’s all about how people are “feeling”. Well, DUH! The freaking media have been ramming this doom and gloom FICTION down their throats for at least the last six months! It’s no wonder the naïve little lemmings are now “feeling” like they’re in a recession (when even Buffett himself admits they’re NOT).The “report” goes on to note:“Omaha-based Berkshire has about $35 billion in cash and is looking to invest.”Is Buffett looking to drive the markets down in search of the <a href="http://www.google.com/search?hl=en&q=%22Warren+Buffett%22+value+investor" rel="nofollow">value plays he is known for? I would not presume to know.Remember, even The San Francisco Chronicle has <a href="http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/03/04/BUAHVCU21.DTL" rel="nofollow">already debunked Buffett once.Also recall, Buffett <a href="http://www.cnbc.com/id/23449591/" rel="nofollow">freely admits that he:“never made any money out of economic forecasting”Meantime, the professionals whose income depends upon accurate economic forecasts, <a href="http://www.conference-board.org/economics/stalk.cfm#forecast" rel="nofollow">continue to forecast economic growth in every quarter of 2008.It is increasingly unlikely that we are currently in a recession or that we will be at any point in 2008:================================<a href="http://sbvor.blogspot.com/2008/04/recession-of-2008-that-wasnt.html" rel="nofollow">The Recession of 2008 That Wasn’t?================================
You have a VERY interesting point. I definitely agree that we are technically in an economic slow down and not a recession. Although it is possible to be in a recession and not know it for several months afterwards. Nonetheless as Suze says, the issue is really inflation. Besides the overall US economic state, there are still several things that individuals can do to protect themselves financially. As you perhaps alluded to and Dave Ramsey points out, even if we were in a recession, it would be the BEST time to invest. Friendly Regards,Shawn
This comment has been removed by the author.
Shawn,1) You are very kind and refreshingly reasonable. Feel free to share my insights with others, if you care to (and by any means you care to).2) Buy low, sell high is never bad advice.3) In my view, the two greatest risks to our economy are:A) Scientifically illiterate Environmental Extremists seeking to tax carbon to death.B) A growing anti-Capitalist, pro-Marxist world view.These two are deeply intertwingled and Gail Fosler, President of The Conference Board, alludes to it when she says:“U.S. economy faces a long period of slow growth… [in my view, largely because] Social divides and antipathy to free markets will grow ”4) I just enhanced my post (mostly for ease of use). It is, and will remain, a work in progress for as long as need be.P.S.) I deleted my previous comment owing to a typo.
SBVOR,Capitalism has it flaws too, but by far, it is one of the better systems. To date, I believe every socialist economy has failed.BTW, Your keen insights displayed both on your blog (which is great) and by your comments here are undeniable. I definitely enjoy and appreciate the discourse. Thanks for taking out the time to share.
The world is talking itself into a recession.
I found this site using google.com And i want to thank you for your work. You have done really very good site. Great work, great site! Thank you!Sorry for offtopic