Buffett says fiscal cliff won’t trigger recession
November 14, 2012 3:44PM
FILE - In this file photo taken Oct. 5, 2010, Warren Buffett, chairman and chief executive officer of Berkshire Hathaway, listens as President Barack Obama speaks at Fortuneís Most Powerful Women Summit in Washington. Warren Buffett's Berkshire Hathaway is investing $5 billion in Bank of America Thursday, Aug. 25, 2011, sending its shares soaring by 24 percent. (AP Photo/Charles Dharapak, File)
Updated: December 19, 2012 12:04PM
OMAHA, Neb. — Investor Warren Buffett says there won’t be a recession if Congress can’t resolve the so-called fiscal cliff before the automatic tax increases and spending cuts take effect in January.
Buffett told CNN on Wednesday that the U.S. economy is very resilient, and it won’t collapse if lawmakers and President Barack Obama can’t immediately agree on a plan.
The billionaire’s view differs with economists who have predicted a recession is likely if the fiscal cliff isn’t addressed.
Buffett told CNN, “We are not going to permanently cripple ourselves just because 535 people can’t get along.”
Buffett also says he believes the economy would be fine even if income and capital gains taxes were significantly higher than they are now.