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Saturday, November 23, 2024  
20 Jumada Al-Awwal 1446  

Buffett thanks Uncle Sam for helping economy

Billionaire Warren Buffett thinks the U.S. government performed well during the economic meltdown of 2008, so he wrote an admittedly tardy thank-you note to his "Uncle Sam."

The note from the chairman and CEO of Berkshire Hathaway Inc. was published by the New York Times Wednesday on its op-ed page. Buffett apologized for not writing to thank his "uncle" sooner before reiterating his view that the government should be praised for its efforts to stabilize the economy with massive bailouts and stimulus spending.

"Well, Uncle Sam, you delivered," Buffett wrote. "People will second-guess your specific decisions; you can always count on that. But just as there is a fog of war, there is a fog of panic — and, overall, your actions were remarkably effective."

Buffett's message was published as the Federal Reserve's latest attempt to stimulate the economy with a $600 billion bond-purchase program was being criticized on Capitol Hill. Some Republicans say the Fed is overstepping its authority with the plan and could wind up stimulating inflation instead of the economy.

Buffett's article didn't discuss the government's current efforts to get the economy moving in his article, but he did express skepticism about the Fed's plan during a brief television interview on CNBC.

"I don't think the impact will be huge from it, and I think it opens up certain dangers in terms of people worrying about the United States government printing money," Buffett said on CNBC. "I would not want to bet my chips on the fact that the government monetizing 600 billion of debt is going to make a big change."

Besides, the government is already stimulating the economy, Buffett said, because it is spending more money than it is taking in.

Buffett did not respond immediately to questions Wednesday.