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Buffett still optimistic about the US 
(Tue, 3 May Pre-Open) 
 
The US economy may be going through a really difficult phase. Fiscal deficits, consumer prices and unemployment rates may continue to soar. Massive monetary stimuli may fail and erode the value of the dollar.

But there is one man who is still optimistic about America. His name is Warren Buffett.

According to him, despite all the problems that the economy is facing, the US remains a very good place to live and to work. "I don't see how anybody can be other than enthused about this country," Buffett told Berkshire Hathaway shareholders during the recent annual meet.

He even went on to say that the recent downgrade warning issued by the S&P was "premature". According to him, the US has no credit risk. He very conveniently said that the government could easily print more money and get away. He made it sound as if there was nothing serious to worry about.

His shareholders and the rest of his countrymen may have cheered and applauded his encouraging words. But we refuse to take anyone's views at face value. So what if that someone is the 'Oracle of Omaha'?

We believe it's very unlikely that Buffett will ever say anything bitter about the US economy. For instance, would you want to speak ill about a stock that you are heavily invested into? No, right? Similarly, this gentleman called Buffett is very heavily invested into this stock called "America Inc." And given the fact that the entire world sits and listens to his views, any negative view could actually shake the markets. So he has a clear vested interest in being the self-appointed PR person of the ailing US economy.

So listen well what he says about stock picking. When he talks about the economy, look elsewhere.

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