CNBC Press Releases

QUICK: ALL RIGHT. FIRST UP, MR. BUFFETT, HI, THIS IS BEN BERNANKE. I'M THE CHAIRMAN OF THE FEDERAL RESERVE.

BUFFETT: I'VE HEARD OF YOU.

QUICK: YOU HAVE? THANK YOU, SIR. DO YOU THINK I WENT TOO FAR WITH THAT LAST RATE CUT?

BUFFETT: WELL, I DON'T THINK THERE'S MUCH NEED FOR MORE RATE CUTS. THEY HAVE PLAYED THAT OUT, AND IF YOU GET RATES DOWN TOO LOW YOU HAVE A REAL PROBLEM. SO I THINK I WOULD QUIT NOW.

QUICK: YOU WOULD QUIT NOW?

BUFFETT: SURE.

QUICK: PRETTY IMPRESSED. THANK YOU, SIR.

BUFFETT: OKAY.

QUICK: LET'S TRY ANOTHER ONE. EXCUSE ME. MY NAME IS HANK PAULSON. I'M THE SECRETARY OF THE TREASURY. WE JUST GOT THIS GREAT STIMULUS PACKAGE TOGETHER FOR THE UNITED STATES. DO YOU THINK IT'S ENOUGH OR DO I NEED TO COME UP WITH A SECOND STIMULUS PACKAGE AND FAST?

BUFFETT: I THINK THE DOWN SIDE IS COMING UP WITH...I DON'T THINK THE STIMULUS IS NECESSARILY GOING TO DO AN ENORMOUS AMOUNT OF GOOD. IN FACT, I THINK MOST PEOPLE WHEN THEY GET IT REALLY SHOULD PAY DOWN THEIR CREDIT CARDS IF THEY OWE MONEY THAT. BUT YOU CAN, YOU KNOW, INSTEAD OF WRAPPING $600 IN THE SKY YOU CAN DROP $6,000 INTO THE SKY BUT IT HAS CONSEQUENCES LATER ON IN THE INFLATIONARY AERA. SO I THINK YOU HAVE TO BE A LITTLE CAREFUL ABOUT DROPPING MONEY ON PEOPLE IN THE ECONOMY.

QUICK: SO YOU DON'T THINK THAT WHAT WE'VE ALREADY DONE --

BUFFETT: HAVE YOU CHANGED YOUR HAIR, HANK?

QUICK: A LITTLE BIT. YOU DON'T THINK IT'S A GOOD IDEA, TO SEND OUT THE CHECKS WE'VE JUST STARTED SENDING OUT LAST WEEK?

BUFFETT: IT'S GOT PLUSES AND MINUSES. YOU CAN OBVIOUSLY STIMULATE AN ECONOMY BY MAILING MONEY TO PEOPLE. AND YOU WANT TO MAIL THEM $6,000 YOU'LL GET MORE STIMULUS THAN $600. BUT IT CAN'T BE A FREE LUNCH, IN TERMS OF MONETARY POLICY AND THE EVENTUAL ECONOMIC CONSEQUENCES. AND I DON'T THINK -- I THINK YOU WANT TO BE CAREFUL USING THAT TOOL.

QUICK: YOU PREFER THAT PEOPLE ACTUALLY GO OUT AND PAY DOWN THEIR CREDIT CARD DEBT? WHAT WE'VE BEEN THINKING IS, HEY, THEY'LL GO OUT AND SPEND AGAIN AND THAT WILL HELP THE ECONOMY. JUST PAYING DOWN THEIR DEBT, NOT NECESSARILY DOING WHAT WE WANTED.

BUFFETT: THAT MAY BE. BUT I THINK ANYBODY THAT'S PAYING 15% TO 18% ON CREDIT CARD DEBT IS OUT OF THEIR MIND IF THEY DON'T TAKE THE STIMULUS AND PAY DOWN THE CREDIT CARD BECAUSE THEY'LL NOT BE ABLE TO EARN 15% OR 18% WITH MONEY.TO THE EXTEND THEY ARE IN A HOLE NOW BECAUSE THEY'VE OVERBORROWED IN THE PAST. THEY SHOULD PAY DOWN DEBT. IF I OWED MONEY AT 15% TO 18% AND I GOT $600 OR $600,000, I WOULD USE IT TO PAY DOWN THE DEBT.

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