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Current economics theory suggests to spend our way out of a recession, but is that a good thing?

I disagree, i think the economy needs to fix itself, give it time to heal. A bailout is the equivalent of curing a hang over by drinking more. It may feel better in a short term, but long term you still are going to feel the pain.

What happens if the bailout does not work? Governments will be deep in debt with no revenue to pay for it. Interest rates will have to go up (to sell debt bonds) and the economy once again will slow down.

I think recessions are a good thing, they remind us to save for a rainy day, the reprice things back to affordable, and show us which investment managers are running scams.

I guess we will have to just sit and watch how this unfolds, but i have a bad feeling about all these bailouts.

During an interview with CNBC Warren Buffet stated “I would say, by any commonsense definition, we are in a recession,” However, it is difficult to predict how deep the recession will go he added. Buffet, who’s company is sitting on $44 billion in cash, said that stocks are still not cheap even though there was a significant correction:”At 1,300-plus on the S&P, stocks are not cheap,” the Standard & Poor’s 500 index is down 15% October.”I find more things to look at now than I did six months or a year ago, but I would say it’s changed more dramatically in the fixed-income market than it has in the equity market’ That may be where I find the opportunities.”

So here you go some investment advice from America’s greatest investor.