Forbes reports that the Sage of Omaha – billionaire investor Warren Buffett – believes that housing is the key to the economic recovery. Buffett, whose Berkshire Hathaway owns Clayton Homes, Vanderibilt Mortgage, and other factory built housing, lending and building suppliers, believes most banks and corporate profits are in good shape now. “It’s not doing fine in things tied to residential construction. That won’t come back until we work off the excess inventory. But the amount of excess inventory is not as high as a lot of people think, in my judgment.” Buffett said. Housing could work off the excess inventory of foreclosures before mid-2013. When housing returns to a million starts a month, unemployment will drop below 7%. He doesn’t expect a double-dip recession, unless Europe’s debt crisis spills over impacting American markets or U.S. consumers go into a ” huge funk.”
