Friday, July 9, 2010

Buffet Offers Optimism To Krugman

Warren Buffet has presented a rosy sunshine picture of the U.S. Economy to contrast against the desolate landscape in Paul Krugman's warnings of "the early stages of a third depression."

I believe Buffet may be practicing the concept that psychology rules a large part of every economy. As strange as it is, it might help change a 'fragile recovery' to a 'full recovery' just by beating the drums of "we are coming back."

The stimulus is working, though more money should have been allocated directly to the states that need it the most. And in the next two or three years is certainly the time frame in which we will know if Krugman or Buffet was right.

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