SAN DIEGO--(BUSINESS WIRE)--Although the U.S. economy is no longer in the "emergency room," a full
recovery isn't imminent, noted Warren Buffett, CEO of Berkshire
Hathaway Inc., in a recent Business Wire interview to promote the
launch of PYMNTS.com,
a portal for the global payment industry.
Buffett's remarks came in a wide-ranging video interview with Cathy
Baron Tamraz, Business Wire's president and CEO. PYMNTS.com is a
joint venture of Business
Wire and Market
Platform Dynamics. The interview was conducted on Sept. 16, 2009.
Acknowledging that the financial markets were gripped in a "real panic"
during the height of the economic crisis, Buffett praised government
authorities for taking the appropriate measures to quell the fear, and
to prevent the economy from "going over the cliff." Buffett warned that
while we are out of immediate danger, remedial action is still needed to
cure broader systemic issues.
Consumer and investor confidence were casualties of the panic mentality
in late 2008, Buffett continued, and it will take a while for confidence
to be restored. Buffett reiterated his firm belief that the American
economic system is sound and works extremely well, and that the
long-term prognosis for the U.S. standard of living remains very
favorable.
Unemployment will continue to be an issue, as companies are extremely
cautious in adding to their payrolls. Buffett was optimistic that three
years from now many of his own companies will have more employees than
they do currently as the economy continues to rebound.
A greater reliance on government regulation will not eliminate future
bubbles or free falls, Buffett warned, noting that human behavior is the
unmanageable variable in the economic cycle. Although reforms may
mitigate future economic gyrations, human emotion is a wild card that
defies regulation.
Criticizing Wall Street's current compensation model, Buffett argued for
a more balanced system that included "sticks" as well as "carrots."
Buffett called for the creation of a "downside" for individuals who have
walked away rich from the messes they've created, not only for their own
financial institutions, but for society. "There have to be incentives,"
Buffett said, "not only to get rich, but to behave well."
Reflecting on the painful lessons of the past year, Buffett observed
that it has reaffirmed that the customer is king, and that companies
that are committed to client service will do well in the long term.
Business Wire video interview: http://client.dssimon.com/bw1
About Business Wire
Business
Wire, a Berkshire
Hathaway company, is utilized by tens of thousands of member
companies and organizations worldwide to functionally enhance
and communicate investor
relations and public
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service in the United States, Canada and a dozen European countries,
Business Wire facilitates the simultaneous flow of market-moving press
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including regulatory authorities, media, investors, financial
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Communications professionals turn to Business Wire to optimize and issue
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Founded in 1961, Business Wire has dual headquarters in San Francisco
and New York, with 30
bureaus in cities including Los Angeles, Chicago, Boston, Miami,
Paris, Frankfurt, London, Brussels, Tokyo, Toronto and Sydney and
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services is located on its website at http://www.BusinessWire.com.
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6086563&lang=en
About PYMNTS.com
PYMNTS.com
is an online media channel that captures user-generated and
expert-driven commentary, information, news and analysis on "what's
next" in the payments sector worldwide. The site provides a platform for
industry professionals to share content related to their latest company
and product developments, to tap into the collective commentary and
analysis from experts, bloggers and industry pundits, and to interact
with industry thought leaders and other influentials on topics of
critical importance to the future of the sector.
PYMNTS.com. provides an innovative new platform for emerging players to
"pitch" their venture and companies in the sector to launch new
products. The PYMNTS.com wiki
provides a first-ever country-specific payment information repository,
created and maintained by professionals in those countries with access
to and knowledge of their local payments environment. Breaking news is
provided by a direct feed to the site from Business Wire.
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6086563&lang=en
