> Warren Buffett Blog: People scarred from the 2008 - 2009 sell off still have not forgotten about it

Tuesday, September 6, 2016

People scarred from the 2008 - 2009 sell off still have not forgotten about it

What you’ve seen overall since 2008 and ‘09 – that was a wound to the American psyche. People were scared silly then … really we hadn’t had since the Great Depression. And you still see that in a lot of ways. 

But since the fall of 2009, we pretty much had 2 percent growth and people started talking sometimes about a double-dip recession; other times they talked about things accelerating. But if you really look at it … average it out, we’re showing 2 percent growth, which isn’t bad, but it does reflect I think still some … people that didn’t think the 2008 and ‘09 could happen, saw it happen and it scarred their attitudes for some period. Same thing happened in the Great Depression. 

People don’t get over that very quickly. When they started worrying about their money-market funds, and they start worrying about their jobs and they worry about the economy coming off the tracks, and banks and everything else, they don’t forget about that six months later.