Depression: 2009

In the early 1970s, Gerry Anderson produced a TV series called Space: 1999.

During this worldwide financial meltdown, I can’t help but hearing a key line from the opening episode again and again:

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“Now we’re sitting on the biggest bomb man’s ever made.”

I’ve recently watched the debut episode again and can’t help but see in it parallels to our current situation.

After the break, Depression: 2009 illustrated via Space: 1999.

The early twenty-first century looked great. Banks kept depositing funds:

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Everyone was making money, real estate was booming, so there were no worries. No one looked closely at the mortgages being written. Otherwise they would have seen what was actually going into those bank vaults:

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It was toxic. Lethal. Dangerous.

From time to time, a stray columnist or expert would sound an alarm. But people who went out to check on this paper gave the all clear. They were regulators.

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See, they’d say. Look:

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All clear. The data looked fine, they said.

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All that stuff was stored safely away. People paid their mortgages, so there were no problems.

But trouble was lurking:

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Loans were suddenly going bad.

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Millions of mortgages were hitting critical mass.

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Suddenly people were seeing their monthly payments explode on them.

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Sometimes the monthly payment ballooned to …

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… frightening proportions. Then the entire mortgage market blew up:

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A crisis was in the works, driving early warners crazy …

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… for they could see the bigger explosion ahead.

The Feds came up with a rescue plan

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… thinking that if …

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… they could launch this plan …

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… with enough resources …

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… they could go into the largest holders of this toxic debt …

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… remove it …

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… and get it the hell out of the way of everyone.

However …

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… there were other factors at work. It wasn’t just our vaults with toxicity. Many other countries had it too …

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… and that unknown factor would jeopardize the rescue plan.

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Those other countries started to blow up …

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… like Iceland

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… setting off a chain-reaction. But would it reach us?

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Off on the horizon, we could see the danger …

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… and it kept growing …

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… growing …

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… and growing.

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If this goes wrong … there will be no survivors.”

Personally, I think it’s too late.

CNBC today declared what’s been happening to our stock market as a “cascading crash.”

That sounds like a chain reaction to me. Like this:

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How big do I expect it to get?

This big:

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We will enter a period unprecedented in all of human history.

No prior guideposts will serve us.

We will be on our own:

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On Monday, I told someone on Twitter the Dow would hit the 8,000s.

It has.

It will go even lower.

Unless they close the markets.

And if they do that, will they ever be able to re-open?

All prior Chronicles of Depression 2.0 posts. Read them before you must.

Explore posts in the same categories: Bank Collapse Watch, C.O.A.T. - Belief, C.O.A.T. - Money, C.O.A.T. - Politics, C.O.A.T. - Scams, C.O.A.T. - Self-Defense, Depression 2.0, Stock Market Crash Watch, TV, Video - DVD

2 Comments on “Depression: 2009”

  1. Robert Wooller Says:

    I am not looking forward to it. We are doomed as the government will be bankrupt as the people plea for help. The Dow is now at around 7500. Wow, that is like half of what it was worth at the beginning of this year.


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