Warren Buffett Predicts that US Unemployment Rate Will Drop Considerably Over Next 16 Months
According to the Wall Street Journal (link below), Warren Buffett is of the opinion that the US unemployment rate will drop below 8% by the time that voters head to the polls in November of 2012.
Warren Buffett is so sure, in fact, that he has entered into a wager with former White House budget director Peter Orszag over the matter. At stake? $1.
According to the Wall Street Journal, Buffett doesn't think that the unemployment rate will just barely close under 8% by the time that November of 2012 rolls around. Instead, Buffett has gone on record as saying that the unemployment rate will be "well below" 8% by November 6th, 2012.
Buffett contends that "home construction will recover, and the construction industry will start hiring more" between now and November of 2012, and this will help to lead the US unemployment rate lower.
For the record, the US unemployment rate currently sits at 9.1% (May, 2011).
The last time that the unemployment rate was under 8%? January, 2009 (7.6%).
It's hard to see the unemployment rate trending below 8% between now and November of 2012, but Warren Buffett is much, much smarter than I am, so I'm sure that I'll end up being wrong..
Source: WSJ.com - Warren Buffett's Wager on Unemployment
Source: Historical Unemployment Rates
Filed under: General Knowledge