Buffett says stocks, homes are fairly cheap now

Buffett reiterated his call for tax reforms and a higher tax rate for wealthy investors like himself. He has said for years that he believes his tax rate is too low compared with what middle-income wage earners pay.

"The real question is whether this is a tax code that the United States can be proud of," Buffett said. But he says neither Democrats nor Republicans want to talk about reforms now because it is an election year.

Buffett said the nation's $1.2 trillion deficit won't be fixed by contributions from individuals. He said the country is simply spending too much and bringing in too little revenue, like a rich family that has promised too much.

Buffett said Congress should vote on the proposals developed last year by the deficit-reduction commission led by Republican Alan Simpson and Democrat Erskine Bowles. That package included cutting about $4 trillion from budget deficits over a decade, but few of its recommendations have been embraced.

Buffett said Europe's debt problems remain a concern, and he doesn't think those countries have solved their problem yet.

"The basic problem is they gave up their right to print their own money," he said.

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