OMAHA — Billionaire investor Warren Buffett says Europe’s debt concerns and the anemic U.S. home-construction business will continue to hurt the economy even though many businesses are performing well.
Buffett told CNBC on Monday that the recent leadership changes in Italy and Greece should help but that investors are losing confidence in the euro. And Buffett said Europe doesn’t have anyone with the authority to take the measures needed to defend the currency.
He said stopping a run on a currency is difficult. He said that when the U.S. economy began to contract in late 2008, the Federal Reserve and Treasury were willing to do whatever it took to revive business.
Buffett says no one in Europe has comparable authority to the Federal Reserve.
“They have a situation where they found a fundamental flaw in that they can’t print money,” said Buffett, chairman and chief executive of the conglomerate Berkshire Hathaway.
Buffett said much of the American economy is performing well but that any business related to home construction continues to struggle because of the oversupply of homes. The Associated Press
