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More Economists Say Crisis Is Worse Than Great Depression
Ominous headlines have prominent analysts spelling out
disaster
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More prominent economists have declared that the U.S. is facing
a depression that may be even worse than that of the 1930s.
Noting that current efforts to rescue the mortgage
industry are less successful than those used during the 30s,
Edward J. Pinto, former chief credit officer at Fannie Mae has
warned that the current crisis could be worse.
Mr. Pinto said that, while the subprime crisis
was often compared to the Depression, there were differences
that made the current problem more acute. The Depression-era
collapse in housing prices did not generally put homeowners
at risk of owing the bank more than their house was worth.
That is not the case today.
In addition, hedge fund manager and billionaire philanthropist
George Soros has
warned that the current crisis outstrips that of
the 30s:
The bursting housing bubble "acted like a detonator
that exploded a much larger bubble," he said.
"The economies of the world are falling off a cliff.
This is a situation that is comparable to the 1930s. And once
you recognize it, you have to recognize the size of the problem
is much bigger," he said.
(Article continues below)
Pinto and Soros join the IMF’s top economist, Olivier
Blanchard, and Professor
Peter Morici, a former chief economist at the U.S.
International Trade Commission, who have both concluded that
a depression is looming.
These summations dovetail with the analysis of renowned financial
publication The Economist, which
reported earlier this month that, based on the
characteristics of the current financial crisis, the U.S. is
in a depression, not a recession.
More and more prominent analysts are now saying what people
like Alex Jones and Peter Schiff were being called doomsayers
for predicting over a year ago, that the U.S. faces a crisis
on the scale of the great depression, if not worse.
The following headlines, all from the last 24 hours, speak
volumes about the current situation:
US
new jobless claims up, continued claims a record
U.S.
New-Home Sales Decline to Lowest Level on Record Amid Credit
Freeze
World
growth ‘worst for 60 years’
Stocks
Could Drop 20%, No Safe Haven: Dr. Doom
Ford
reports record yearly loss
Sony
profits fall 95 percent
Shell
Posts First Loss in 10 Years on Oil Price Drop
While fiscal conservatives such as Ron
Paul have called for cuts in spending and liquidation
of debt, The
House has passed Obama’s $819 billion stimulus
package, at a cost of $6700 more debt to each and every American.
As if that wasn't bad enough, hundreds of billions of the proposed
stimulus is scheduled to be spent on unrelated items, such as
climate change studies and digital TV converter box coupons,
that will provide little to no
stimulation of the real economy whatsoever.
Astoundingly, there are already reports of handing another
$2 trillion of taxpayer money to the banks!
The insanity continues.
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INFOWARS:
BECAUSE THERE'S A WAR ON FOR YOUR MIND
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