Multibillionaire Warren Buffett denounced Standard & Poor’s downgrading of the U.S. credit rating.
“I don’t get it. It doesn’t make sense. In Omaha, the U.S. is still triple-A rated,” Buffett told Fox Business Network
. “And if there were a quadruple-A, I’d give it to the U.S.”
The United States doesn’t deserve the downgrade, said the 80-year-old Buffett, chairman and chief executive officer of Omaha, Neb.-based Berkshire Hathaway Inc. (BRK/A).
Story continues below video.
And Buffett doesn’t expect the downgrade to make any difference globally.
Bloomberg also told Bloomberg News that Standard & Poor’s erred when it lowered the U.S. credit rating and reiterated his view that the economy will avoid its second recession in three years.
The downgrade followed the biggest weekly selloff in U.S. stocks in 32 months, with the S&P 500 slumping 7.2 percent to its lowest level since November.
“Financial markets create their own dynamics, but I don’t think we’re facing a double dip recession,” Buffett told Bloomberg. “Clearly what stock markets do have is an effect on confidence, and this selloff can create a lack of confidence.”
© 2015 Newsmax Finance. All rights reserved.