Warren Buffett On CNBC: Economy Has Fallen Off A Cliff, Inflation Could Be Coming

Legendary investor Warren Buffett was on CNBC this morning with Becky Quick and answered questions from viewers. Below are some highlights from the interview and the videos from CNBC.com:

Highlights:

• Buffett says economy has fallen off a cliff, calls it an economic Pearl Harbor
  
• Buffett says people have really changed their behavior like nothing he's ever seen
  
• Buffett said that the government efforts will likely lead to inflation, maybe worse than the 70s
  
• Says President Obama is the only authoritative voice on economy
  
• FDIC is huge factor in U.S. economic success and is working fine
  
• Says economy will recovery, 'Our kids will live better than we do'
  
• Buffett said the economy was days away from collapse in Sept
  
• Says most banks can earn their way out of the crisis
  
• Stands by NY Times Article "Buy American, I Am", Wishes timing was better
  
• Say he couldn't get 10% yield on GE (NYSE: GE) and Goldman Sachs (NYSE: GS) now
  
• Buffett said Berkshire (NYSE: BRK.a) keeps extra cash on hand
  
• Says Berkshire's GenRe unit had derivatives like AIG (NYSE AIG), which could have busted the company
  
• Housing recovery may take 2-3 years
  
• Investment in Dow Chemical (NYSE: DOW) looks dumb now
  
• Obama needs to clarify bank rescue plan, state all cash in U.S. banks is safe
  
• Buffett says uptick rule is a 'good idea'
  
• Buffett favors tax cuts for everyone but rich
  
• Says a number of banks will doe well in the future, except maybe Citi (NYSE: C) which is a 'special case'
  
• Proposed tax rule on charity not the end of the world
  
• Says lessons of 'extreme leverage' was driven home in 2008
  

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