By definition, the US is not in a recession. You wouldn't know it by reading the news. Buffett, whose self professed investing practices ignore macro economic cycles and recessions is now among the
Chicken Littles shouting that the sky is falling. Not only that, he's screaming it will be far deeper and worse than many people think. The article goes on to not cite a single factor causing this deep and long lived recession, which by definition doesn't yet exist.
Buffett only states that the average person believes there is a recession.
Well the average person is an idiot and is holding $10-15k in credit card debt, a student loan, a car loan, a HELOC, and a bunch of worthless toys that bolstered our trade gap and the economy in some other country (ie not made in America).
There are two fundamental problems driving the economy right now and both can easily be addressed.
Housing Crunch - temporary. The balloon popped- and that is going to sting for speculators and people who couldn't afford their house in the first place. Solution: get out, and wait it out. It's a great time to be a first time home buyer shopping for a new home.
Oil- A manufactured crisis by wacko extremism by environmentalists and congress. They will be handed their hats when gas hits $5.00/gallon. There is no shortage of oil- only artificial barriers by idiots in congress and the far left keeping us from using it. Congress can easily address this- but won't. When Americans demand the restrictions to competition in the oil industry be removed, confidence will soon follow. Likewise, when real solutions to alternative energy arise, the economy will take off like a rocket (ie nuclear energy).
In the near term. Will the economy contract for 6 consecutive months (the definition of a recession)?
Maybe.
But to date it has only grown at a slower pace and has absorbed both oil and housing remarkably well. That my friends is one hell of a resilient economy.