CNBC Press Releases

QUICK: BUT IS THERE A CHANCE THAT I, AS JEAN-CLAUDE TRICHET, WILL WAKE UP TOMORROW AND FIND I'M BEHIND THE CURVE. JUST LIKE THE FED FOUND ITSELF LAST YEAR?

BUFFETT: I'M GLAD YOU ARE ASKING THESE QUESTIONS IN ENGLISH. IT'S KIND OF YOU TO DO THAT.

QUICK: ANYTHING FOR YOU, MR. BUFFETT.

BUFFETT: WELL, ANY CENTRAL BANKER IS GOING TO MAKE SOME MISTAKES. SO THERE'S ALWAYS A CHANCE THAT HE'S MAKING A MISTAKE. BUT I'M SURE THAT THE FACTS HE'S GOT, WHEN HE WEIGHS THEM, HE SAYS, I DON'T WANT TO DROP RATES WAY DOWN. AND AMERICANS DO.THEY'VE GOT THEIR OWN PROBLEMS, BUT I'VE SEEN INFLATION BEFORE. I KNOW HOW HARD IT IS ONCE IT GETS IGNITED TO PUT IT OUT. SO – BUT HE CAN BE WRONG SURE.

QUICK: PROBABLY NOT REASSURING BUT THANK YOU VERY MUCH FOR YOUR TIME, MR. BUFFETT.OKAY. NEW CALL. I AM JAMIE DIMON. AND, MR. BUFFETT, YOU SAID THAT TWO DAYS WAS NOT ENOUGH TIME FOR YOU TO EVALUATE THE RISK OF BUYING BEAR STEARNS.THAT'S WHY YOU DIDN'T DO THE DEAL. BUT NOW IT'S BEEN EIGHT WEEKS SINCE THAT DEAL. DO YOU THINK I MADE THE RIGHT MOVE BY STEPPING IN FOR BEAR STEARNS?

BUFFETT: WELL, FROM A SOCIAL STANDPOINT, HE DID MAKE THE RIGHT MOVE. THE FED MADE THE RIGHT MOVE OF GETTING SOMEBODY TO DO THAT. I DON'T THINK YOU'LL KNOW THE ANSWER TO THAT FOR A WHILE. A HIGH PERCENTAGE OF JAMIE DIMON'S MOVES HAVE BEEN THE RIGHT MOVE.

QUICK: WHEN YOU SAY SOCIALLY, WHAT DO YOU MEAN?

BUFFETT: IF THE FED HADN'T MOVED IN ONTHAT SUNDAY, THE FOLLOWING WEEK WOULD HAVE -- COULD WELL HAVE BEEN SOMETHING LIKE WALL STREET HAS NEVER SEEN.

QUICK: ALL RIGHT. THAT'S THE END OF MY ROLE PLAYING. THAT'S ALL I CAME UP WITH. BUT I HAVE A COUPLE OTHER QUICK QUESTIONS. YOU TOLD US A WEEK AGO THAT THIS RECESSION COULD BE LONGER AND DEEPER THAN ANYBODY -- THAN A LOT OF PEOPLE ARE EXPECTING AT THIS POINT. YET WHEN YOU COME TO THE MIDWEST, THERE'S JUST BEEN A REPORT OUT FRIDAY THAT SAYS THIS NINE-STATE AREA IS IN BETTER SHAPE THAN A LOT OF OTHER PLACES BECAUSE OF THE BIOFUEL SITUATION, BECAUSE OF THE HIGH PRICES FOR COMMODITIES, BECAUSE THE HOUSING BUBBLE DIDN'T INFLATE TO THE LEVEL IT DID OTHER AREAS. ARE YOU SEEING THINGS HERE? DO YOU THINK IT'S BETTER OFF HERE IN THE MIDWEST THAN IN OTHER PARTS OF THE ECONOMY?

BUFFETT: YEAH, IT IS. WE GOT HIT FAR LESS BY THE FALL IN HOUSE PRICES THAN A PLACE LIKE CALIFORNIA OR NEVADA OR ARIZONA.THEY NEVER WENT UP AS REMOTELY AS HIGH SO THEY DIDN'T HAVE AS FAR TO COME BACK. AND WE'RE RELATIVELY PROSPEROUS HERE. OUR EMPLOYMENT RATE IS LESS. AND OUR FURNITURE MARKET ON SATURDAY WE DID A RECORD AMOUNT OF BUSINESS. ABOUT 10% HIGHER THAN ANY DAY WE'VE DONE IN THE HISTORY OF THE COMPANY. AND ANY RETAILER WILL TELL YOU $7.25 MILLION IN ONE DAY IS AT A FUNITURE STORE IS A LOT OF BUSINESS. PEOPLE ARE RELATIVELY PROSPEROUS HERE. I WOULD SAY THE RECESSION HAS NOT HIT IN ANY BIG WAY HERE.

QUICK: WHAT ELSE DID YOU FIND THIS WEEKEND IN TERMS OF SALES BECAUSE I KNOW YOU HAVE A LOT OF DIFFERENT COMPANIES SELLING. WHAT CAN YOU TELL US ABOUT WHAT BERKSHIRE SHAREHOLDERS WERE SPENDING?

BUFFETT: THEY ARE BUYING 1.5 PAIRS OF BOOTS A MINUTE, JEWELRY EVERY NINE SECONDS. WE WERE WRITING A TICKET. ALMOST ALL OF THE PLACES BROKE THEIR RECORDS.

QUICK: ALMOST ALL OF THE PLACES BROKE THEIR RECORDS?

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