Bailouts Will Push US into Depression: Manager

CNBC ^ | 09/11/08

[TigerLikesRooster]

Bailouts Will Push US into Depression: Manager

By CNBC.com | 11 Sep 2008 | 09:11 AM ET

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."

The estimated $300 billion cost of the Fannie/Freddie bailout will probably be considered as a loss that the government will have to take, therefore passing it on to taxpayers, he explained.

"We already have $3 trillion of debt, as far as the U.S. government is concerned. These debt figures across the U.S. economy are rising very sharply."

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.

[TigerLikesRooster]

I can see that a so-called expert is starting to utter "D" word.

[TigerLikesRooster]

Ping!

[Ghost of Philip Marlowe]

“may be”

Speculation. Not news.

The sun may implode tomorrow making the threat of a depression fairly minor in comparison.

[Darkwolf377]

Geez, things be lookin' awful. If all this comes out before election day, President Obama will have a nice big crisis to deal with when he takes office.

And I was feeling so positive until now... :(

[ovrtaxt]

If so, here comes the Amero...

[Bertha Fanation]

Gee, whenever I read any story with the byline initials NBC (whether alone or as part of MSNBC or CNBC) why does it conjure up images Oberman and Mathews?

[Nathan Zachary]

"The estimated $300 billion cost of the Fannie/Freddie bailout...

Will not bankrupt the nation. Gezzz.. If the author thinks so, then i guess we'll just have to cut back on foriegn aid, and the billions spent on African Aids, which is the same as burning the money.

[Carley]

What has happened to NBC?

Well, we know what has happened. And the cancer is spreading to just about every single program.

Pathetic.

[Waco]

No prob., just have CBS lie about it.

[LibLieSlayer]

Thanks for injecting sanity amongst all these pee filled diapers.

LLS

[Dr. Ursus]

Not To worry-It’ll be Bush’s for the next 100 years!

[se_ohio_young_conservative]

we are not even in a recession yet and they are talking about a Depression. it is hilarious.

[Keith]

good...we’re going to need some idiots to sell us some securities on the cheap...

[Caipirabob]

"The estimated $300 billion cost of the Fannie/Freddie bailout...

That's about 3% of our gross national product, yes? I don't know if there's a formula or anything. It's abominable, but I don't think it's a long-term economic ZOT...

Then again, I'm no economist nor did I stay at a Holiday Day Express last night...

[Diana in Wisconsin]

The weaker the dollar, the more my gold & silver are worth.

Not wishing any ill to my fellow Freepers who invest differently than I do, but...Bring it on, Baby. :)

[Calpernia]

>>>we are not even in a recession yet

Jon Corzine (former CEO of Goldman Sachs) says we are.

http://www.njbiz.com/article.asp?aID=73811
Corzine: ‘We have a National Recession’

[palomonte]

Martin Hennecke - who the heck is he?

The coming depression in this country will occur on Nov. 5, when the democrat party, again, manages to snatch defeat from the jaws of victory.

[Dr. Ursus]

I invested in cans of tuna futures.Do you pefer mustard or mayo with your gold and silver?

[Diana in Wisconsin]

Just a reminder as to where OUR money goes! Every time I post this chart, Health & Human Services spending inches up. Grrr! However, it shows you that a mere $300 BILLION is a drop in the bucket. We, as a Nation, are insanely rich with PLENTY of fat in our budget that could be cut...though you'd never know it, thanks to the traitorous MSM!

[Diana in Wisconsin]

Dismiss me if it makes you feel better. My return over 9 years on my initial investment has been 300%. Yes, that’s 33% per year. And that’s on top of IRAs and 401Ks. This is ONE woman who will NOT be a burden to society when she’s old and alone. Can you say that for your wife, sweetheart or daughters?

I’m about the ONLY Gold/Silver-bot here who can back up her claims with cold, hard cash. I’ve been investing in commodities since I was a teen, playing with her allowance money. (I was blessed with an intelligent, practical, blue-collar-but-so-much-smarter-than-that, Dad who taught me everything I know today.)

I’m 48 now; I’ll be out of the workforce completely by the time I’m 55, God Willing and the Democrats don’t TOTALLY destroy America.

You don’t know me, and you’re fairly new here, so I won’t be too hard on you. ;) You don’t even WANT to see my larder and ammo supplies, LOL! And while I’ve never field-dressed a Moose, I do pretty well on a White Tail. :)