The dollar is up.
The Dow is up.
Oil is down.
And it's all thanks to an interview Warren Buffett gave this morning to CNBC. The oracle is suddenly more postive on the greenback.
From Reuters by Jonathan Stempel entitled: Buffett sees economy weak until 2009
"Warren Buffett said the economy is still in a recession and unlikely to improve before 2009 but that stocks appear better valued than a year ago.
The billionaire investor also said there is a "reasonable chance" shareholders of Fannie Mae and Freddie Mac may be wiped out in any government bailout of the mortgage financiers.
Speaking on Friday on CNBC television, Buffett said some housing-related businesses in his Berkshire Hathaway Inc conglomerate are struggling as the economy works off past excess in making credit available.
"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, who in March was called the world's richest person by Forbes magazine.
He also said Federal Reserve Chairman Ben Bernanke has no "magic wand" to boost an economy facing weak growth prospects, mounting inflation and deteriorating credit. "In my judgment it won't be any better five months from now," he said.
Buffett nevertheless said U.S. stocks are broadly "more attractive" than a year ago. He also said Berkshire has completely unwound a once $21 billion bet against the U.S. dollar, helping boost the greenback in Friday morning trade."
Meanwhile, Ben Bernanke gave a speech of his own today in Jackson Hole, Wyoming.
Here's what he had to say:
"The financial storm that reached gale force some weeks before our last meeting here in Jackson Hole has not yet subsided, and its effects on the broader economy are becoming apparent in the form of softening economic activity and rising unemployment. Add to this mix a jump in inflation ... and the result has been one of the most challenging economic and policy environments in memory."
So who is right here? Well in a sense they both are.
Either way, today's market action seems to be a little overdone. The volume just isn't there.
