Buffett says recession will be long and deep

updated 1:27 p.m. ET May 26, 2008

BERLIN - Warren Buffett, whose business and investment acumen has made him one of the world’s wealthiest men, was quoted in an interview published Sunday as saying the U.S. economy is already in a recession.

Asked by Germany’s Der Spiegel weekly whether he thinks the U.S. could still avoid a recession, he said that as far as the average person is concerned, it is already here.

“I believe that we are already in a recession,” Buffet was quoted as saying. “Perhaps not in the sense as defined by economists. ... But people are already feeling the effects of a recession.”

“It will be deeper and longer than what many think,” he added.

The 77-year-old chairman and chief executive of Berkshire Hathaway Inc. gave the interview while he was in Europe for what he called a “deferred shopping tour,” looking for possible acquisitions.

Omaha-based Berkshire has about $35 billion in cash and is looking to invest. Berkshire’s subsidiaries include insurance, clothing, furniture, natural gas, corporate jet and candy companies. Berkshire also has major investments in such companies as Coca-Cola Co. and Anheuser-Busch Cos.

Also in msnbc.com business ConsumerMan: Are your holiday lights a fire hazard? Answer Desk: Repairing your credit rating Your Career: More and meaner gossip at work Blacks fear path to middle is class blocked   Video: Las Vegas’ big gamble

MORE FROM STOCKS & ECONOMY

Stocks & economy Section Front

Unexpected drop in jobless rate fuels optimism A deeper look behind the jobless numbers Factory orders rise an unexpected 0.6 percent Stocks advance as employers cut fewer jobs theGrio: Black teens' unemployment rate spikes Obama sees some consensus at job summit Economic data points to bumpy recovery Crude oil prices tumble to a seven-week low Geithner: Job creation is main focus Productivity rises by largest amount in 6 years Stocks & economy Section Front   Add Stocks & economy headlines to your news reader: