Tyche - We expect a Depression in the United States

This is one frightening opinion.

From CNBC:

"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

Note in the video he talks about deleveraging in the US economies.

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Panic, Roubini and the "D" word

Mess o Greenspan has a good piece on how Roubini is becoming a rock star lately with his dire predictions but points out some of this may be piling it out. He points to Dr. Doom on a video clip.

Roubini is saying Congress should immediately recapitalize the FDIC.

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Deflation and Wall Street: Perfect together.

The thought of collapse first came to my mind when the Cyborg in Chief (VPUSA) told then Treasury Secretary O'Neill "Deficits don't matter." Anyone understanding Adam Smith's "Money Price of Gold" did what I did in 2003: increased allocation of precious metals to 10 percent. That allocation is still in place despite recent drops in price.

In the late 90's, while consulting for Merrill Lynch and the CMA accounts, I kept noticing how everything done was some kind of trespass on Glass Steagull (Depression Era separation of Banks and Brokers). A manager told me "Oh, we just thumb our noses at Glass Steagull." They still are thumbing away over at Merrill and I would like to ask how that is working out for them in the last few years.

When the same manager asked if I would like to join the Merrill team,
I politely refused.

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