Filed under: Bad news, Economic data, Housing, Recession
Warren Buffett has been pretty vocal about how bad the current downturn will be. The same holds true for billionaire money manager George Soros. He has even testified before Congress to make his concerns known.
Now, Eli Broad, one of the richest men in America, or anywhere else for that matter, says this is the worst economic period of his lifetime. Broad will be 80 soon.
Broad told Bloomberg,“This is worse than any recession we’ve had since World War II.” He does not think the housing market will recover for years and sees a sharp rise in unemployment.
The “billionaire boys clubs” now seems to have formed a consensus, and nearly all of it is based on the problems in the housing market. It home sales keep dropping, most of the equity people in the US have built over the last twenty years goes away. If some of these people lose jobs, defaults rise and the matter becomes worse.
You can bet against the very rich, but it is probably not a good idea. They did not become fabulously wealthy by being stupid.
Douglas A. McIntyre is an editor at 247wallst.com.
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