By Matthew J. Belvedere and Becky Quick
If Republicans and President Barack Obama were to fail to reach an agreement to raise the nation's borrowing authority, that would be "pretty damn dumb," said billionaire investor Warren Buffett in a taped interview that aired on CNBC on Friday.
In addition to the upcoming October or early November deadline on the debt ceiling, the prospects of a government shutdown next month also loom.
But Buffett, while critical of this type of partisan bickering, told CNBC, "the market is not gonna fall apart, because [investors] expect Washington will only act irrationally for a certain length of time."
Republicans are looking at the debt limit issue and the waning government funding as leverage to push deficit-reduction plans.
The GOP-controlled House is pushing through a stop-gap federal funding bill to avoid a shutdown, but it includes measures to gut the president's health-care law.
Obama has vowed to veto any such legislation.