Warren Buffet says 'Economy fell off a cliff'

Billionaire Warren Buffet said unemployment will likely climb a lot higher depending upon how effective the nation's policies are, but he remains optimistic over the long term.

Buffett said the nation's leaders need to support President Obama's efforts to repair the economy because fear is dominating Americans' behavior and the economy has basically followed the worst-case scenario he envisioned.

"It's fallen off a cliff," Buffett said today during a live appearance on CNBC. "Not only has the economy slowed down a lot, but people have really changed their habits like I haven't seen."

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