Bailouts Will Push US into Depression: Manager

Bailouts Will Push US into Depression: Manager

www.cnbc.com

The end result of the global economic slowdown may be the U.S. announcing national bankruptcy as the government cannot afford the bailouts that it promised and the market will not bail out the government, Martin Hennecke, senior manager of private clients at Tyche, told CNBC on Thursday.

"We expect a depression in the United States. We expect a depression, very possibly, also in Europe," Hennecke said on "Worldwide Exchange."

(visit the link for the full news article)

This, I believe, is the viscious cycle that bankers fear. Debt begins to ferociously feed off of more debt until there just isn't any money any more.

He also claims that the real US inflation rate is closer to 10 or 11%. WOW.


www.cnbc.com
(visit the link for the full news article)

Hey don't tell that to those that are still dreaming on America the great we are not in depression and America's problem is just a slow down.

Anyway is not to worry about this after all the Fed is not worry and our Government is not worry, they have the ability to print all the money they want so, nothing to see here just another slow business day in Washington and in the markets.

reply to post by TruthWithin

Very interesting stats here. Thanks for this post. Besides investing in gold as was suggested in the article, I might add that being as independent for food and water will be very important. Although I don't remember the "Victory gardens", I do remember my mom talking about them. Also returning to the barter system can help people during these lean times.

I really don't think it is a "surprise" that we will soon pop the national debt bubble do you? Math wasn't my best subject, but it's a no brainer!


I mean when you are talking "trillions" it might as well be "gazillions" since it's all just TOO HUGE to get my head around!

o-w-e-e I need an aspirin!

I wonder how lower can the dollar may go, the bail outs will add more to the deficit and then on top of that the same financial institutions that our government is bailing are tax evaders so their want their bail out of free.

The fed is now going to lower more the interest rates but we all know what effect it has on the dollar but not in the America pockets.

Everything done so far by the Fed and our government is nothing short than bailing out the private interest at the expenses of tax payers in this nation.

They get a free ride we the citizens get to pay the tab.

reply to post by marg6043


I look at it this way. The gov said that Fannie and Freddie were "too big to fail".

Do you suppose that is what China, Japan and Saudi Arabia are saying about the US right now?

I am prepared to boil water over fire to sanitize it and eat canned beans.

Or remember after the Countrywide fiasco the fed said they were not going to bail out anymore financial institutions?

Funny but the next one in line are the car making industry.

oh for crying out loud, every day for the past 60 years there has been one economist or the other saying that we're all on the verge of a depression, thats their job, it's what they do.

and just my 2 cents here, what the heck is the point in investing in gold!!! are you going to buy a gold brick to throw through the window of a food store?

Originally posted by pieman
and just my 2 cents here, what the heck is the point in investing in gold!!! are you going to buy a gold brick to throw through the window of a food store?

As to your second question..........Lets see.........Dollar value goes down......Gold value goes up.

The coming depression it seems is a topic that angers some folks. It's going to happen, mark my words. Some won't accept it, until they feel the effects. And no, it's not an economists job to scare people....

[edit on 9/11/2008 by justme2]

Originally posted by Reddupo
I am prepared to boil water over fire to sanitize it and eat canned beans.

I am fully prepared to invade the homes of the super wealthy and take their food and gold when the time is right! Why on earth should I suffer for their hubris.

This is the lies they circulate to get everyone to sell, then they buy there sells off them.
Its no different to what they do everyday like yesterday.
Bloomberg reports Lehman brothers doing bad stocks are down they drop them a little bit.
Then look how high they end up 200 points higher.
Don't believe these liars and there contrarian market manipulation techniques.

Did you all miss the last part of his quote? (emphasis mine)

"When the government can no longer pass the United States' 'immense debt' on to taxpayers, it will turn to the holders of U.S. dollars, leading to the eventual downfall of the currency,' Hennecke said."

Originally posted by Interestinggg
This is the lies they circulate to get everyone to sell..Bloomberg reports Lehman brothers doing bad...Don't believe these liars and there contrarian market manipulation techniques.

So we should ignore Lehman's third quarter net loss of $5 Billion?

Not lies my friend. It's Lehman's biggest loss in history.

And it isn't a "Co-inky-dince".



[edit on 9/12/2008 by justme2]

reply to post by TruthWithin

There is no problem. What bailout. What debts. It's all conspiracy theories. What depression.

reply to post by sir_chancealot


Not missing it so much as mutually assuming that if there is a depression, the dollar will naturally tank.


And remember folks...this is an ELECTION year when the incumbents are supposed to make the economy look as good as possible!

Originally posted by marg6043
I wonder how lower can the dollar may go...

Check the financial news, the dollar is higher in value now than it has been since last October

I'm no economist but from what I can see this will do the US goverment no favours in terms of the amount of bailouts it has taken on, the US debt is already huge and really can't be allowed to get bigger.

Best thing they could have done is to let Freddie and Frannie go, many small companies go under but the goverment doesn't save them. Size of company shuld not be an issue, there is always risk in the market.

Check the financial news, the dollar is higher in value now than it has been since last October

The dollar is relative to other currencies, mainly the Euro which is tanking.

There are no fundementals that have changed to boost the dollar. The F&F bailout should have brought it down, but didn't.

From what I've read, we are experiencing Deflation.

en.wikipedia.org...



[edit on 12-9-2008 by Pinktip]

Originally posted by 2stepsfromtop

Originally posted by Reddupo
I am prepared to boil water over fire to sanitize it and eat canned beans.

I am fully prepared to invade the homes of the super wealthy and take their food and gold when the time is right! Why on earth should I suffer for their hubris.

I wanna hang with you if this happens... "Penitensiagite!"