Chairman of Berkshire Hathaway
The billionaire investor recently sat down with students from the University of Pennsylvania's Wharton School and answered their questions. Fortune magazine published his comments, along with answers from additional questions posed by the magazine.
When asked how current problems in the economy compare with past declines, Buffett said in "2006 you had $330 billion of cash taken out in mortgage refinancings in the United States. That's a hell of a lot — I mean, we talk about having $150 billion of stimulus now, but that was $330 billion of stimulus. And that's just from prime mortgages. That's not from subprime mortgages. So leveraging up was one hell of a stimulus for the economy."
His long-term view: "The American economy is going to do fine. But it won't do fine every year and every week and every month."