Warren Buffet says the economy improvement is not a recovery yet

 In a recent interview to a media edition Warren Buffett, CEO of Berkshire Hathaway Inc., noted that while the economy of the United States in no longer in the "emergency room," a full recovery isn't imminent.

Buffet pointed to a "real panic" during the height of the economic crisis and acknowledged government’s efforts taken to address the situation and prevent the economy from "going over the cliff." Buffet underlined that while the nation is out of immediate danger additional efforts and measures are still needed to make the system more stable.

Talking about consumer and investor confidence Buffet stated that they were casualties of the panic mentality in late 2008 while it will take some time for the confidence to be restored to the sufficient level. He stressed that he has a firm belief in that the US economic system is sound and will works extremely well, and that the long-term prognosis for the U.S. standard of living remains very favorable.

According to his view the unemployment will remain a serious challenge but still there are optimistic prospects that three years from now many of his own companies will have more employees than they do currently as the economy continues to rebound.

Buffet warned that a greater reliance on the government regulation won’t eliminate future crises as there is still human factor that remains. He noted that human behavior is the unmanageable variable in the economic cycle. Although reforms may mitigate future economic gyrations, human emotion is a wild card that defies regulation. 

Buffet was critical about Wall Street's current compensation model. He noted that there should be incentives not only to become rich but also “to behave well” as in reality many managers who contributed to the world financial crisis have walked away rich.