If news of recent days is any indication, the economy has hit bottom and the only way to go is up.
For small business owners, this is good news. According to legendary investor and CEO of Berkshire Hathaway Warren Buffett, the U.S. economy has "hit a plateau at bottom -- we went through the worst of it in residential real estate in all probability." And yesterday Federal Reserve Chairman Ben Bernake proclaimed, "the recession is very likely over."
The positive outlook from Buffett and Bernake contributed to stock and commodities prices being pushed higher.
In the past eight weeks, signs that the recession is over have emerged. The housing market has started to move in a positive direction, and surveys have indicated that small business owners are feeling more confident about the economy. Industrial production rose for the second month, boosting the production of cars, clothing and other goods.
Buffett predicts that we will slowly begin to see changes in the U.S. economy, as consumer changes in spending will be "long lasting, and that may mean that the recovery will be quite slow." It's good to know, however, that the worst is behind us.
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