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More Economists Say Crisis Is Worse Than Great Depression
Posted By admin On January 29, 2009 @ 11:32 am In Featured Stories,Steve Watson Articles | Comments Disabled
Ominous headlines have prominent analysts spelling out disaster
Thursday, Jan 29th, 2009
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.
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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:
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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URL to article: http://www.prisonplanet.com/more-economists-say-crisis-is-worse-than-great-depression.html
URLs in this post:
 Infowars.net: http://www.prisonplanet.com/index.html
 has warned: http://thebulletin.us/articles/2009/01/29/business/doc498155695e915629914618.txt
 has warned: http://moneynews.newsmax.com/streettalk/soros_TARP_banks/2009/01/28/175846.html
 Image: http://www.prisonplanet.tv/subscribe.html
 Olivier Blanchard: http://www.prisonplanet.com/imf-warns-of-great-depression.html
 Professor Peter Morici: http://www.upi.com/Business_News/2009/01/11/Expert_calling_it_a_US_depression/UPI-11211231704692/
 which reported earlier this month: http://www.prisonplanet.com/the-economist-us-in-depression-not-recession.html
 US new jobless claims up, continued claims a record: http://rawstory.com/news/2008/Jobless_numbers_reach_record_high_4.8_0129.html
 U.S. New-Home Sales Decline to Lowest Level on Record Amid Credit Freeze : http://www.bloomberg.com/apps/news?pid=20601087&sid=aaDbGEgTdNog&refer=home
 World growth ‘worst for 60 years’ : http://www.prisonplanet.com/index.php/world-growth-worst-for-60-years.html
 Stocks Could Drop 20%, No Safe Haven: Dr. Doom : http://www.prisonplanet.com/index.php/stocks-could-drop-20-no-safe-haven-dr-doom.html
 Ford reports record yearly loss: http://news.bbc.co.uk/1/hi/business/7858289.stm
 Sony profits fall 95 percent : http://www.prisonplanet.com/index.php/sony-profits-fall-95-percent.html
 Shell Posts First Loss in 10 Years on Oil Price Drop: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aFukDsc4_55I
 Ron Paul: http://infowars.net/articles/january2009/270109Paul.htm
 The House has passed: http://www.bloomberg.com/apps/news?pid=20601070&sid=aDI_CTcpen5s&refer=home
 no stimulation: http://www.prisonplanet.com/here-is-where-the-825-billion-is-going.html
 another $2 trillion: http://www.prisonplanet.com/us-talks-of-pumping-1-trillion-into-banks-report.html
 http://infowars.net/articles/january2009/290109Depression.htm: http://infowars.net/articles/january2009/290109Depression.htm
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