Mortgage Giants’ Collapse Could Herald 1930’s Style Depression

[babylonsister]

This is a cheery little article that was e-mailed to me...

http://www.infowars.com/?p=3322

Mortgage Giants’ Collapse Could Herald 1930’s Style Depression

Paul Joseph Watson
Prison Planet
Monday, July 14, 2008

Veteran London Times journalist William Rees-Mogg predicts that the collapse of U.S. mortgage giants Fannie Mae and Freddie Mac could herald a downturn into a 1930’s style depression that threatens to sweep away democratic governments.

Rees-Mogg served as editor of The Times, Britain’s oldest surviving newspaper, from 1967 to 1981, and currently sits in the House of Lords.

Inflation

Veteran journalist Rees-Mogg refers to 1930’s hyper-inflation crisis in Germany which led to the destruction of the Weimar Republic and the rise of Adolf Hitler.

In his column today, Rees-Mogg states that the world economy is not just entering an economic recession, but a depression comparable with the great crash of 1929 and its 10-year aftermath.

Tracing the origins of the crisis back to the dot-com bust at the end of the 1990’s, Rees-Mogg writes that stock markets are so ravaged that they will not recover to their 2007 levels until at least 2032.

“This recession has produced a succession of nasty surprises. Things are always proving to be worse than anyone had expected. Last week the crisis spread to the American mortgage giants Fannie Mae and Freddie Mac, created by President Roosevelt in 1938,” writes Rees-Mogg.

“These are far bigger than the investment bank Bear Stearns and Northern Rock put together. They have brought the crisis from the level of billions of dollars, to the level of trillions. No doubt they will be saved because the US would be bust if they went down. But you cannot save six- trillion-dollar institutions without suffering on a large scale.”

more...

[Deja Q]

1. Good reasons for preventing their fall, I should think.

Never mind the ramifications on the global economy...

We need to bring back jobs or something to offset the tax losses too.

A long road ahead, but certainly no impasse, road block, gloom'n'doom or anything else - to say the least.

[Tangerine LaBamba]

2. Surprise, everyone!

We're already in a Depression.

And things are not yet at their worst.

[PetrusMonsFormicarum]

3. Wheelbarrows of cash

for a loaf of bread, although if it ever got to that, I think I'd just insulate my house with dollars. What's the R-value of American paper money?

[Wcross]

6. Buy your food today.

That's what I did, a full years supply just in case we DO see a collapse rivaling that of the "great" depression. I may buy more if the situation continues to deteriorate. If I do sense a need to buy a few more years worth I will do it on a credit card. It ought to be easy to pay it off if we experience hyper-inflation.

[hogwyld]

4. On a side note

Thanks to the GOP's policies, our Great Depression will only affect us. The rest of the world will go on, while we wallow. Oh well, at least we have The Bomb...

[Selatius]

5. No, it's not complete unless all of the world suffers like we do. That is why we must war with Iran.

Then, when oil tankers are cut off from the Persian Gulf for the duration of the war, the economies of Europe and the world will buckle under the oil shortages as people are dying all over the Middle East from incoming bombs and missiles and marching armies.

:sarcasm:

[MadHound]

14. No, it will effect much of the rest of the world

India and China will lose a large market, as will Europe. Not to mention how such a crash will kill the world financial markets and sector. Sure, we will be hit the hardest, but the world will be hurting as well. The last Great Depression was a world wide affair, thanks to the increased interconnectivity of the global economy, the next one will be an even bigger affair.

[Tierra_y_Libertad]

7. All those glorious and exciting "smart bombs" on Iraq have produced some unpleasant ripples.

Now becoming Tsunamis.

[skooooo]

8. It hasn't reached the level of the S&L problems of the 80s yet...

[Fire Walk With Me]

9. Don't panic! BushCo will be there to pick up the pieces

and reassemble them in their own image.

[NightWatcher]

10. "1930's style depression" wasnt that the Great Depression, of which our family members told stories?

about tough times and having to eat dirt to survive.

[babylonsister]

12. Why yes, it is. nt

[roamer65]

11. The Great Depression of the 1930's...

was a deflationary depression. I'd gladly take a deflationary depression over a hyperinflationary one. Under hyperinflation, supply disruptions are horrendous. It will be hard to find food at any price during the coming hyperinflationary depression.

[Snarkturian Clone]

13. Um, Infowars?

Might as well be World Net Daily.