Don’t worry. Even though there is lots of hysteria revolved around the fiscal cliff in the United States of America, the Oracle of Omaha tells us that we as a nation have nothing to fear.
Warren Buffett, CEO of Berkshire Hathaway, and billionaire philanthropist, is the man who goes by the moniker the “Oracle of Omaha” because of his excellent investing prowess. He tells us that no matter which way the fiscal cliff debate goes, Americans will not “permanently cripple ourselves.” With that being said, we’d be much better off if Congress were united, especially the Republican representatives, he tells CNNMoney.
“If 25 Republicans put country before party we won’t go over the fiscal cliff,” he mentions in an interview with CNNMoney.
Buffett also added that even if the lawmakers end up in gridlock, he doubts it will last very long or cause too much damage.
“[If Congress] can’t get along for the month of January, it’s not going to torpedo the economy.”
It’s not in Warren Buffett’s nature to fear making his views known on issues that are very similar. He’s done it quite often in the past. While the debt ceiling debate was going on last year, as an example, Buffett told us that the Republican-controlled Congress was “going to blow your brains out” by not raising the debt ceiling any higher. He also mentioned that not raising the debt ceiling could certainly be the “most asinine act” in the history of Congress.
This time, there are other economists making very similar statements to Warren Buffett. Larry Summers warns us that the fiscal cliff should not “become a license for terror.” In the meantime, New York Times columnist and Nobel prize-winning economist Paul Krugman is accusing the GOP of “holding America hostage” by demanding that Bush era tax cuts continue to protect the wealthy.