Buffett says US economy can only go up is on its way up: Buffett

NEW YORK: Warren Buffett, the billionaire investor who last year called the financial crisis an ���economic Pearl Harbour���, said the US economy has ���hit a plateau at bottom���.

���We have not bounced, but we���ve quit going down,��� Buffett, the 79-year-old chief executive officer of Berkshire Hathaway, said on Wednesday in an interview on CNBC. Signs the worst recession since the 1930s is over have accumulated in the past two months, with US manufacturing expanding for the first time in 19 months in August and home sales rising. Federal Reserve chairman Ben S Bernanke said on Tuesday ���the recession is very likely over���.

���We���re through the worst of it in residential real estate in all probability,��� Buffett said on Wednesday, adding that he doesn���t expect a ���double-dip��� recession.

The number of contracts to buy previously-owned homes rose more than forecast in July and increased for a record sixth consecutive month, while mortgage buyer Freddie Mac said the average price rose 1.7% in the second quarter. The remarks from Buffett and Bernanke helped push stock and commodities prices higher, with futures on the Standard & Poor���s 500 Index up 0.4%. Lead rose for a third day and copper prices advanced. Stocks climbed on Tuesday as Buffett, known as the ���Oracle of Omaha���, told a conference in California that his company was buying equities because ���I am getting a lot for my money���.

Kraft Foods

Buffett built an equity portfolio valued at more than $48 billion by betting on companies including soft-drink maker Coca-Cola and Kraft Foods that he believes have competitive advantages and enduring brand popularity.

Buffett told CNBC that, while he���s not opposed to Kraft���s bid for Cadbury, he thinks the offer is a ���pretty full��� price. Last week, Cadbury rejected a takeover proposal from Kraft, valued at about $16 billion, as too low. Buffett said he has confidence in Kraft���s management. Berkshire is Kraft���s biggest shareholder.

Berkshire is also the top holder in Wells Fargo, the nation���s biggest home lender, and Buffett has been adding to the stake this year and saying the bank���s ability to gather deposits at low costs will boost profits. ��� Bloomberg

Credit Cards

���We���re gonna have unusual losses in credit cards and in commercial real estate��� in the economy, Buffett said today. ���But we���re a lot better off than we were a year ago. I mean for one thing, some of the toxic assets have been flushed through. There���s been capital raised.���

JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc., the biggest U.S. credit-card lenders, said yesterday that defaults climbed in August as the unemployment rate jumped and the impact of tax refunds waned.
JPMorgan said yesterday that construction and development loans remained the ���greatest area of concern��� for its commercial bank portfolio as net charge-offs will continue to rise.

Berkshire gained $1,250 yesterday to $100,000 on the New York Stock Exchange. The shares have dropped 20 percent in the past 12 months.