Buffett: the United States economy over the next five months will be worse

World's richest man · Warren Buffett said recently, according to his definition, the United States economy at least the next few months will remain, the subprime mortgage crisis to financial industry and the overall economy.

(http://finance.) Buffett said the long term, five years after the United States economic performance will be better, but a short period, that is, the next five months, will be worse than now.

Buffett says recession means most of the United States who now had not previously. According to most economists, standard definition, gross domestic product (GDP) for two consecutive quarters of negative growth, is known as the economic recession.

As for the United States the subprime mortgage crisis, Warren Buffett said the two mortgage commitments for company "Fannie Mae" and "real beauty" scale, will not be closed down, but this does not mean that the shareholders of both companies will not be significant blood loss.

Buffett says, "two" is obviously seeking assistance, but the scale of the required funds, the mere folk should not establishments. So Buffett predicts that the United States Federal Government must step in to lend a hand. Buffett said the United States may have more bank failures, particularly in the residential market is too deep for banks, real estate bubble bursting, will not count down.

2008 earlier, Buffett has said that the financial crisis is like economic tide receded, revealing what financial sector players have been skinny-dipping "naked"; the results found that Wall Street was a bit like a Heavenly beach.