Biz people

Buffett predicts financial 'freefall'

Billionaire Warren Buffett said the economy will be "in shambles" this year, and perhaps longer, before recovering from the reckless lending that caused the worst "freefall" he ever saw in the financial system.

The economy and stocks will rebound, and the best days for the US are ahead, said Buffett (right), chairman of Berkshire Hathaway Inc, in his annual letter to shareholders on Feb 28. Buffett said he'll spend the recession shopping for new investments for Omaha, Nebraska-based Berkshire.