Nebraska Billionaire Warren Buffett remains confident that America’s best days are ahead, but he says the nation likely will face higher unemployment and eventually inflation because of the current economic crisis.
Buffett said the nation’s leaders need to emphasize a consistent message, and they should support President Barack Obama’s efforts to repair the economy because fear is dominating Americans’ behavior.
Buffett said the economy has basically followed the worst-case scenario he envisioned six months ago.
“It’s fallen off a cliff,” Buffett said Monday during a live appearance on cable network CNBC. “Not only has the economy slowed down a lot, but people have really changed their habits like I haven’t seen.”
Buffett said the changes are reflected in the results of Berkshire Hathaway Inc.’s subsidiaries. He said Berkshire’s jewelry companies have suffered, but more people have been willing to switch to Geico to save money on car insurance.