US in recession says Buffet

According to Buffet, the United States is already in a recession. The effect on housing is bleak.

According to a recent interview on CNBC, Billionaire investor Warren Buffet, is clear to point out that the US is already in a recession. While the definition of a recession has yet to be met, the billionaire warns that this is likely the case. Yet, it seems opportunities are still available and he still sees profits ability.

In comments about the Federal Reserve Chairman, Ben Bernanke, Buffet says that he has a very difficult road ahead as he tries to balance interest rate cuts for the housing market and the threat of increasing inflation, both of which are key elements to the economic condition of the country.

Buffet says, as reported by The Globe and Mail, "From a common sense standpoint right now, we're in a recession."

Even though rates are being cut and there is "hope" for investors in property investments here, there are still negative signs in place. The U.S. housing market has not let up, with new information recently in showing that construction projects in the country fell 1.7% in the month of January over the 2007 numbers.

This is being blamed on the lack of interest in investment for home construction.