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October 05, 2008

Not going to turn around next month

BUFFETT:  I always said that I thought in the end the Congress would do the right thing on something this important.  This is not a panacea.  This does not solve all our problems.  It just would have been a, it would have been a total disaster if it hadn't of passed and it gives some tools to reducing the impact of this recession on the economy.  But it's not a panacea.

BECKY:  The market seems to agree with that.  The Dow right now down by about 50 points.  How much trouble, how much troubled times do you think are ahead for the nation?

BUFFETT:  Well, I think frankly there's a lot -- it'll be quite awhile before unemployment bottoms out and the recession bottoms out.  I don't know whether -- I don't know how long that period will be, but it's not going to turn around next week or next month.   Without this, it would have plunged into something, I think, far, far worse than what we're going to see.

BECKY:  Where do you think things will -- Will this loosen up the credit markets?  That's what people have been watching so closely.

BUFFETT:  Well, that's the key.  It will certainly loosen them up.  You can't believe how tight the credit markets have been.   I mean the credit markets have been frozen here and it was getting worse by the day.  And frankly, even waiting these two weeks to pass this bill was -- you know, it all hurts.  But this will be a big help.  Whether it gets the job entirely done remains to be seen.

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