Buffett, Paulson talk economy during discussion in Omaha

Omaha, NE – Former U.S. Treasury Secretary Henry Paulson says the nation's financial system is stable and an economic recovery is underway.

Paulson joined Berkshire Hathaway CEO Warren Buffett for a discussion Tuesday at the Greater Omaha Chamber of Commerce's economic outlook luncheon. The discussion brought together two of the nation's experts on economic issues. Paulson served as Treasury Secretary during President George W. Bush's administration.

Paulson says it's in the country's best interest for other nations to succeed economically. He cited China's strong economy as an example, saying the U.S. and that nation are dependent on each other for economic survival.

He also says he didn't anticipate the financial crisis would be as bad as it was. Paulson says he knew the economy was getting worse but he didn't expect 10% unemployment and banks asking for bailouts.

Buffett and Paulson also discussed the stock market and the importance of investing in well-managed companies.