BUFFETT: HOUSING IS IN A DEPRESSION

BUFFETT: HOUSING IS IN A DEPRESSION

14 NOVEMBER 2011 BY CULLEN ROCHE

Over the weekend I posted a video by David Rosenberg claiming that we are in the middle of a modern day depression.   I don’t exactly agree with that idea and I think that Warren Buffett did an excellent job explaining this on CNBC this morning.  Buffett says the U.S. economy is actually incredibly bifurcated.  Gauging his Berkshire businesses, Buffett says that much of the U.S. economy is actually very strong and reaching new highs.  On the other hand, he says anything related to residential real estate is actually in a depression.  With a D.  Unfortunately for the U.S. economy, residential real estate happens to be one of the most important industries we have and residential real estate just so happens to be the U.S. consumers largest asset.  So, I think it’s accurate to say that this one component of the economy is making the USA feel like it’s in the middle of a depression even though many industries are actually doing quite well. More …

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