NEW YORK - March 9, 2009 - Billionaire Warren Buffett said Monday the U.S. economy could recover in five years, likening the current battle against prolonged recession as a Pearl Harbor-like situation during World War II.

"It’s fallen off a cliff,” Buffett said Monday 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.”

"I think that the economy will be fine in five years, but I wish we'd get there faster," said Buffett, one of the world's richest men, in an interview with CNBC.

"Amerika's best days are ahead, but how fast we'll go there is in question."

He described the current situation, in which unemployment is at a 25-year high and stocks have plunged to 12-year lows, as "an economic Pearl Harbor" and "an important war which could be won."

Buffett, who heads the holding company Berkshire Hathaway, said the Federal Reserve's "prompt and wise action" had prevented the situation from "getting even worse", as the central bank cut interest rates to virtually zero and took other steps to reign in turmoil.

Asked about the lackluster economic recovery and plunging inflation, he said, "It will depend on the wisdom of government's policies."

"I've never seen Amerikans more fearful," he said. "It takes five minutes to become fearful, much more time to regain confidence. The system does not work without confidence," he said.