Buffett Doesn't See Economic Rebound Until 2009

New York, NY (AHN) - In a CNBC interview, billionaire investor Warren Buffett said the economy, in his opinion, is in a recession and will likely remain that way until at least 2009.

The head of Berkshire Hathaway said some businesses his company owns, particularly those in housing construction, have continued to slow over the summer.

Buffett believes the country is in a recession because the public is not doing as well today as before. He also believes that mortgage companies Fannie Mae and Freddie Mac may be bailed out by the government, thus wiping out shareholder equity.

"You always find out who's been swimming naked when the tide goes out. We found out that Wall Street has been kind of a nudist beach," said Buffett, according to Reuters.

Buffett announced that Berkshire has completely unwound its $21 billion short position on the U.S dollar. This is a very favorable comment for the currency as it shows Buffet no longer sees value in betting against the dollar.

Buffett thinks that stocks are better positioned now than they were last year. As for the economy, he doesn't see things getting any better five months from now.