Buffett likens meltdown to "an economic Pearl Harbour"

New york, Mar. 10 (ANI): America's billionaire investor Warren Buffett has likened the current global meltdown to "an economic Pearl Harbor", and doesn't expect the US economy to recover anytime soon.

The CEO of Berkshire Hathaway said the US economy has "fallen off a cliff" and the current financial situation is "close to the worst case" that he had predicted six months ago.

"You have to recognize that it is an economic Pearl Harbor. I've never seen the consumer or the Americans just generally more fearful than this. Not only has the economy slowed down, but people have really changed their habits like I haven't seen," the New York Post quoted Buffett as telling at CNBC's "Squawk Box" show during a three-hour interview.

Despite Buffett's depressing forecast about the US economy, "Oracle of Omaha" remained optimistic about its long-term financial prospects.

"Everything will be all right. US economy will be running fine in five years. We do have the greatest economic machine that man has ever created," said Buffett.

Buffett, whose company suffered a 62 percent drop in profits in 2008, said the national unemployment rate - already at a 25-year high - will go a "fair amount" higher before the recession ends.

The legendary investor said inflation has the "potential" to exceed levels seen in the 1970s, when oil price hikes shocked the economy.

Buffett urged all members of Congress to back President Obama's efforts to stop the financial bleeding and spark a recovery.

"What's required is a commander in chief that's looked at like a commander in chief in a time of war," he said.

He defended government intervention in the economy even at the cost of taxpayers' money.

"We're in a big war, and we're going to use money to fight it. The people that behaved well are no doubt going to be finding themselves taking care of the people who didn't behave well," Buffett said. (ANI)