Buffet Says US Economy In Shambles

Buffet Says US Economy In Shambles

http://uk.reuters.com/article/gc04/idUKTRE51R0US20090301?pageNumber=3&virtualBrandChannel=0

Losses on derivative contracts tied to the stock markets had a negative impact on Warrant Buffet’s insurance and investment company Berkshire Hathway’s performance in recent months. Berkshire Hathway’s net worth tumbled $10.9 billion in the year's final quarter while its profits declined by a sharp 96%. Buffet has informed his shareholders that the US economy was in shambles and is expected to remain so the whole of 2009 and maybe beyond that. He however, remained optimistic about the ability of the Americans to withstand any situation while praising the government’s efforts to stem the crisis. The continued deterioration in the US economy and tight credit situation has resulted in a sharp decline in stock prices and increased junk bond defaults causing significant losses for Berkshire.