{"id":4032,"date":"2011-07-09T09:40:56","date_gmt":"2011-07-09T15:40:56","guid":{"rendered":"http:\/\/www.zmetro.com\/?p=4032"},"modified":"2011-07-09T09:40:56","modified_gmt":"2011-07-09T15:40:56","slug":"buffett-on-the-economy","status":"publish","type":"post","link":"http:\/\/www.zmetro.com\/?p=4032","title":{"rendered":"Buffett on the Economy"},"content":{"rendered":"<p><a HREF=\"http:\/\/www.ritholtz.com\/blog\/2011\/07\/warren-buffett-on-u-s-housing-employment-economy\/?utm_source=feedburner&#038;utm_medium=feed&#038;utm_campaign=Feed%3A+TheBigPicture+%28The+Big+Picture%29&#038;utm_content=Google+Reader\">Bloomberg<\/a>: <\/p>\n<blockquote><p><I>Buffett on today\u2019s job numbers and why he\u2019s confident we\u2019ll get the 2.5 million jobs lost in the current recession back:<\/p>\n<p>\u201cBecause the American economy works that way. We have gone through, I don\u2019t know how many recessions, perhaps 15 in the history of this country.\u201d<\/p>\n<p>\u201cBut, our system over-shoots periodically. And in this particular case we had a huge bubble. So the fact that there\u2019s a correction after that should not be unexpected. But our system always comes back and it will this time. And it already is.\u201d<\/p>\n<p>On whether the country will recover most of the 2.5 million lost jobs by the 2012 elections:<\/p>\n<p>\u201cI think there\u2019s a good chance of that. We will come back big-time on employment when residential construction comes back. And we way over-produced in houses. I mean we were forming a million or 1.2 million households and we were building close to two million residential units.\u201d<\/p>\n<p>\u201cBig surprise, we ended up with too many houses. We\u2019re not going to blow them up. We\u2019re not going to have kids start getting married at 12 or something. There\u2019s a natural correction. The only way a correction takes place is to have households formation exceed new construction by a significant amount for a significant period of time.\u201d<\/p>\n<p>\u201cWe\u2019ve had it for quite a while. And when you see these figures of five or 600,000, that means we\u2019re sopping up housing inventory and I don\u2019t know exactly when that hits equilibrium, but it isn\u2019t five years from now I know that. And I think it actually could be reasonably soon.\u201d<\/I><\/p><\/blockquote>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bloomberg: Buffett on today\u2019s job numbers and why he\u2019s confident we\u2019ll get the 2.5 million jobs lost in the current recession back: \u201cBecause the American economy works that way. We have gone through, I don\u2019t know how many recessions, perhaps 15 in the history of this country.\u201d \u201cBut, our system over-shoots periodically. And in this [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"http:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/posts\/4032"}],"collection":[{"href":"http:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/www.zmetro.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4032"}],"version-history":[{"count":0,"href":"http:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/posts\/4032\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.zmetro.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4032"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.zmetro.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4032"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.zmetro.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4032"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}