Failing to come to an agreement between Democrats and Republicans on raising the debt ceiling would be “pretty damn dumb,” Warren Buffet said in a CNBC interview aired Friday.
The GOP is hoping to use the looming threat of a government shutdown in the coming weeks to advance deficit-reduction plans and continue in the attempt to gut funding for the Affordable Care Act. President Obama has promised to veto any bill out of the House that attempts such a move.
Buffett pointed to health care costs as a major problem for U.S. industry, calling them “a tapeworm of American business,” but said they are “not the fault of Obamacare.”
Still, Buffett said investors won’t be too shaken by brinksmanship on the hill. “The market is not gonna fall apart, because [investors] expect Washington will only act irrationally for a certain length of time,” he said.