Buffett bullish over American economy

 
Julian Harris
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THE RISK of a double dip recession in the US is “very low”, according to billionaire investor Warren Buffett, “unless events in Europe develop in some way that spill over here big time”.

The so-called Sage of Omaha hailed America’s “secret sauce”, yet warned that the Eurozone crisis remains the biggest threat to the global recovery.

Buffett urged Europe to form a united fiscal strategy as well as a more coherent approach to labour policy. The single currency area currently looks like a “house divided”, the chairman of Berkshire Hathaway said.

Addressing economic questions on his own side of the pond, Buffett called for a plan to reduce America’s mammoth deficit that involves both tax hikes and spending cuts from entitlement programmes.

Buffett, a friend of US President Barack Obama, has previously endorsed increasing levels of tax on high earners such as himself.