The world's richest man Mr Warren Buffet said that the US is already in recession although some economists reject the idea for the moment.

Mr Warren Buffet in an interview with German magazine Der Spiegel said that "It is perhaps not a recession in the way that economists would understand it but people are already feeling the effects and it will be deeper and longer than people think.”

He also blamed financial institutions for introducing instruments they can no longer control and said that “the 'genie can no longer be put back in the bottle.”

US economic growth has slowed dramatically in recent months and many economists said that the US economy will experience a recession during 2008 amid a housing slump and related credit crunch.