Last week, billionaire investor Warren Buffett told Bloomberg that he’s concerned about stagflation in the U.S. economy. According to Investopedia.com, stagflation is:

A condition of slow economic growth and relatively high unemployment - a time of stagnation - accompanied by a rise in prices, or inflation.

Bloomberg’s Josh P. Hamilton and Erik Holm wrote last Wednesday:

“We’re right in the middle of it right now,” said Buffett, chairman of Omaha, Nebraska-based Berkshire Hathaway Inc., in an interview on Bloomberg Television today. “I think the ‘flation’ part will heat up and I think the ‘stag’ part will get worse.”

Buffett, the world’s richest person, warned that he’s unsure when the U.S. economy might see a turnaround. He said:

It’s not going to be tomorrow, it’s not going to be next month, and may not even be next year.

Source:

“Buffett Says He’s Concerned About U.S. ‘Stagflation’ (Update4)”
Josh P. Hamilton, Erik Holm
Bloomberg, June 25, 2008

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