Park East Capital - Speaking on CNBC TV Warren Buffet gave his forthright views on the economy.
He said the worst of the decline is over but he does not think there will be a bounce and the path to growth will be a slow one.
The US economy is not at risk of deflation anymore and the economy will take time to recover.
Park East Capital reports that Buffet showed frustration at the fact that his investment company Berkshire Hathaway Inc has had no bounce in the economy.
Berkshire Hathaway is a huge investment company which runs over 70 companies and for the first time ever they had posted a loss in the last quarter, highlighting how tough 2008 was. Explains Park East Capital senior economist.
Buffet went on to explain that, There are a lot of excesses to be wrung out, and that process is still under way, and it looks to me it will be under way for quite a while.
He still believes the economy is in a bad way and we are not out of the woods yet. On the stimulus efforts to get the economy moving he said, Theyre doing things, but they take a while to have an effect. You cant produce a baby in one month by getting nine women pregnant.
Here at Park East Capital we agree with what Buffet says, however we are already seeing strong signs the economy is getting better. But also now is a good time to get deals at a low price and as a company we are aggressively looking at add to our investment portfolio with high profit return potentials.
