| Prediction |
Result |
“There are, of course, some major differences between the American and Japanese economies, but the most troubling aspect of the situation is the way in which the Federal Reserve has imitated the Bank of Japan’s unsuccessful strategies. Injecting more liquidity into the money supply by lowering interest rates to stimulate investment in the economy certainly works, for a time, but eventually one runs out of bullets as the cost of money approaches zero.”
- July 22, 2002, WorldNetDaily |
“What we do know is that recessions normally end everywhere because the monetary authority cuts interest rates a lot, and that gets things moving. And what we know in Japan was that eventually they cut their interest rates to zero and that wasn’t enough. And, so far, although we made the cuts faster than they did and cut them all the way to zero, it isn’t enough. We’ve hit that lower bound the same as they did.”
- Paul Krugman, The Guardian, June 14, 2009 |
“So what to do? It seems that many have elected to go into real estate, which doesn’t appear to be the best idea since prices are already at all-time highs and may already be well into a bubble of their own. Gold, on the other hand, is still in the lower range of its historical pricing, and the increased volatility of gold mining stocks (which tends to run triple the percentage change in the spot gold price) offers some real upside if you, like me, expect the equity markets to continue their long march down the hill.”
- July 22, 2002, WorldNetDaily |
From 07/22/02 to 09/22/09, the price of gold rose 214 percent, from $323.30 to $1016.60. The HUI gold mining index increased 254 percent. The S&P 500 increased 26.4 percent and the Case-Shiller Composite-20 housing price index fell 0.7 percent.
- Yahoo Finance, September 22, 2009 |
“There can be little doubt that the implosion of the equity markets will soon be followed by the pricking of the credit and real estate bubbles. As great financial houses such as Citigroup and JP Morgan Chase teeter on the edge of bankruptcy, it is well within the realm of possibility that the triple whammy of the equity, credit and real estate implosions will lead to the collapse of the entire global financial system.”
- September 23, 2002, WorldNetDaily |
“We are in the midst of a once-in-a century credit tsunami. Central banks and governments are being required to take unprecedented measures ….The financial landscape that will greet the end of the crisis will be far different from the one that entered it little more than a year ago.”
- Alan Greenspan, October 23, 2008 |
“It is important to understand that this ongoing financial catastrophe is not only predictable, but inevitable. It is a natural result of paper money, which… has always gone through a natural life cycle of credit-fueled expansion followed by inflation leading to either default or hyperinflation.”
- January 27, 2003, WorldNetDaily |
“Fed and Treasury officials have identified the disease. It’s called deleveraging, or the unwinding of debt. During the credit boom, financial institutions and American households took on too much debt. Between 2002 and 2006, household borrowing grew at an average annual rate of 11%, far outpacing overall economic growth.”
- The Wall Street Journal, September 18, 2008 |
“’Existing-home prices are expected to… hold essentially even in 2008 at $218,300.’ The February report comes out this week… let’s just say that instead of $218k, I’m expecting a decline that would project to $175k or less by the end of the year.”
- March 23, 2008, Vox Popoli |
“The national median price of existing homes plunged to 175,400 dollars in December 2008.”
- National Association of Realtors, January 27, 2009 |
“’The United States is fast approaching an interesting juncture in which the nation will be forced to choose between rebuilding its wealth with a functional free-market system or sinking under the weight of an increasingly dysfunctional, centralized economic system…. Unfortunately, the long term appears to be upon us at last.”
- March 24, 2008, WorldNetDaily |
“This is an extraordinary period for America’s economy…. We’re in the midst of a serious financial crisis, and the federal government is responding with decisive action. ”
- George W. Bush, September 24, 2008 |
“I’m guessing the S&P 500 will see an eponymous 500 before it gets back to 1500 again.”
- August 5, 2002, WorldNetDaily |
INCORRECT. The S&P 500 reached a top of 1526.75 on July 2, 2007 before the 2008 crash drove it down to 666. It presently stands at 1079. |
“Further demonstrating the inability of mainstream economists to correctly calculate the present, let alone predict the future, the UK Office of National Statistics reported an unexpected contraction of -0.4% GDP growth in the third quarter…. You can safely expect similar “surprises” to take place in the United States and Europe over the next three quarters.””
- October 25, 2009, RGD Economics Blog |
“The Consumer Confidence Index sank unexpectedly to 47.7 in October — its second-lowest reading since May. Forecasters predicted a higher reading of 53.1. A reading above 90 means the economy is on solid footing.”
- Associated Press, October 27, 2009
“New Home Sales Fall a Surprising 3.6 Percent. Sales of new homes dropped unexpectedly last month as the effects of a soon-to-expire tax credit for first-time owners started to wane.”
- Associated Press, October 28, 2009 |
“Since the rate of bank failure has been increasing, from 25 in all of 2008 to 45 in the first half of 2009 alone, total deposits in failed banks for 2009 will likely be in excess of $105 billion and 1.4% of total deposits held by U.S. depository institutions.”
- The Return of the Great Depression, p. 247 |
“U.S. Bank, NA, of Minneapolis, Minnesota, Assumes All of the Deposits of Nine Failed Banks in Arizona, California, Illinois and Texas…. the banks had combined assets of $19.4 billion and deposits of $15.4 billion.” This brings the 2009 total to $107 billion and 1.42%.
- FDIC, October 30, 2009 |
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