Behind every billionaire there is a story!

Buffett expects government action on Fannie and Freddie

Warren Buffett said the U.S. economy is unlikely to improve before 2009, and that he expects the government to take action to support troubled mortgage financiers Fannie Mae and Freddie Mac.Speaking Friday on CNBC television, Buffett said retail businesses within his Berkshire Hathaway Inc, insurance and investment conglomerate have been struggling and that the economy is now suffering from past excesses in the availability of credit.

“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, the world’s richest person, according to Forbes magazine.

“What we’re seeing in business, in our retail businesses, or anything having to do with housing, is even a further slowing down in June and July, both in terms of credit experience where people first got in trouble with house payments, and now credit card payments,” he said.

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http://www.reuters.com/article/fundsFundsNews/idUSN2237903020080822