Asian share markets slid for the third straight day on Thursday after the U.S. Federal Reserve slashed the U.S. economic growth forecast and oil surged above $135 a barrel, re-kindling fears of 1980s-style stagflation.
The Fed's warning and the oil price surge cut the legs from May's stock market rally and saddled U.S. stocks with their worst losses in two weeks.
Fretful investors got little comfort from Warren Buffett, the world's richest person, who said that the economic pain was likely to run for a while longer and could get worse.
"I think the tidal wave that hit various financial institutions since last August has largely been recognised and felt," Buffett told a news conference in Madrid at the end of a European tour.
"In terms of the effect on the economy in the United States, we don't know, but I think it will be longer and deeper then many people do. There could well be a lot to come." But he said that for banks at least the worst was probably behind them after the Federal Reserve staved off "really contagious financial panic" with its intervention to prop up investment bank Bear Stearns .
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