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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.
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.
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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.”
Ominously, Rees-Mogg foresees “A momentum of negative events sweeping away financial flood defences; in the 1930s that force overturned democratic governments as easily as it overturned banks.
The veteran journalist is referring to the 1930’s hyper-inflation crisis in Germany, which led to the destruction of the Weimar Republic and the rise of Adolf Hitler.
“Before we get back to balance, we may see dramatic changes in politics, as well as in business and finance,” Rees-Mogg concludes.
The veteran journalist’s warning comes on the back of news that “U.S. regulators are bracing for dozens of American banks to fail over the next year.”
According to an International Herald Tribune report, “Troubles are growing so rapidly at some small and midsize banks that as many as 150 out of the 7,500 banks nationwide could fail over the next 12 to 18 months.”
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65 Responses to “Mortgage Giants’ Collapse Could Herald 1930’s Style Depression”
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Pages: [7] 6 5 4 3 2 1 » Show All
July 21st, 2008 at 8:40 pm
The Real Financial Truth is now considdered fringe by the mainstream. Unbelieveable!!! Logic and reason does not even make it onto the main news shows save for Glen Beck’s show on CNN too little to late. Was this the same thing that happened prior to the 1929 depression? We must understand that the general public understood the value of gold and silver as well as real assets vs. Fiat currency very similarly to how the Chinese know this today.
July 21st, 2008 at 8:24 pm
Anyone see the US Dollar Index last Sunday? Did it dip below 70.5 at all? That was when the rate cut happend. ON A SUNDAY!!! Yes. On March 16th 2008 I saw the index fall as low as 70.31 until the Fed cut rates.
July 18th, 2008 at 10:06 am
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July 17,2008
A lot of people are still taken in by 911. They do not educate themselves, so they are not prepared. They have the internet and are two clicks away from finding the truth about the world they live in, but they can’t be arsed because they are too busy shopping and obsessing about trivia. They deserve what is coming.”
Look Suraci, no body deserves what is coming. I wouldn’t wish such things on our worst enemies. We are all on the same boat together, if one goes down we all go down. That is why the NWO is so cancerous, because the elite think they are separate from us when they are not. (why do you think they now seek robots and bio mind control so much) There quest for power and the power for there to be only one, will eventually create mistrust amongst themselves and in the end, destruction. There is no peace. Only following the laws of nature, in balance and cooperation, brings peace.
July 18th, 2008 at 9:59 am
Really, the FBI should go after bankers personal fortunes if they need money to save the banks, because the CEO of these companies are still running off with all of this fortune after they used fraud to swindle the american people, and the government turned a blind eye to it.
Don’t let Freddie Mac get saved, and yet not hold the CEO’s held responsible for practices that should be illegal in the first place. You shouldn’t be able to create credit bubbles in the first place. That is false accounting. If people rob banks, they go to jail. Why can’t these people.
July 17th, 2008 at 2:50 pm
Economic tyranny in the making folks! Let’s not forget that it was Paul Warburg who was the FED Chairman during the “roaring 20’s”. We mustn’t forget that it was the world’s banking empire that sowed the seeds for economic depression in Germany which started down the road to W.W.II ( together with the ill-conceived “Versailles Treaty” ).
I don’t know about anyone else, but I see no end in sight for this huge “Black hole”! We should have never given up our possession of our true Gold and Silver money! To quote G. Gordon Liddy: “Oh, Ye suckerrrsss !!!”
-JSSmith(Scorpion081)