George Soros says the current crisis outstrips that of the 30s
By Daniel at 29 January, 2009, 3:22 pm
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More prominent economists have declared that the U.S. is facing a depression that may be even worse than that of the 1930s.
Noting that current efforts to rescue the mortgage industry are less successful than those used during the 30s, Edward J. Pinto, former chief credit officer at Fannie Mae has warned that the current crisis could be worse.
Mr. Pinto said that, while the subprime crisis was often compared to the Depression, there were differences that made the current problem more acute. The Depression-era collapse in housing prices did not generally put homeowners at risk of owing the bank more than their house was worth. That is not the case today.
In addition, hedge fund manager and billionaire philanthropist George Soros has warned that the current crisis outstrips that of the 30s:
The bursting housing bubble “acted like a detonator that exploded a much larger bubble,” he said.
“The economies of the world are falling off a cliff. This is a situation that is comparable to the 1930s. And once you recognize it, you have to recognize the size of the problem is much bigger,” he said.
full article: http://www.infowars.net/articles/january2009/290109Depression.htm
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