Buffett: Subprime problems not big economic threat

OMAHA, Nebraska (Reuters) - Warren Buffett said on Saturday problems in the U.S. subprime lending industry were unlikely to pose a major threat to the overall U.S. economy.

"I don't think there's going to be any huge danger to the economy," although the crisis is a "very big problem" to many in the industry, Buffett said at the annual meeting of Berkshire Hathaway Inc., his insurance and investment company.

As long as unemployment and interest rates did not rise significantly, Buffett said "it's unlikely that that factor triggers anything of a massive nature in the general economy."

Earlier in the meeting, Buffett said the U.S. housing downturn was hurting results at Berkshire's residential construction businesses.

"My guess is that perhaps continues, perhaps for quite a while," he said.