The American Triangle of Depression

Stock Market

Stock Market

Ten months ago (January 18th, 2008) Henry Paulson, the American Secretary of the Treasury, announced that in the long run the economical structure of America is solid and that he believes that the economy will grow. Official members of George W. Bush’s government, for instance the Chair of the Federal Reserve, did not say anything about the downfall of the American economy. Two months later (March 16th, 2008) the Secretary of the Treasury repeated his reliance on the American economy and emphasized that he has complete trust of the American financial institutions and that the American marketplace can resist difficulty.

Four weeks before the American economic sun set, people woke up from their slumber and heard that huge and old American banks, American financial institutions, and American insurance agencies went bankrupt. The news of America’s financial crisis and bank crises hit like a bomb and shook the world’s financial system for a few minutes. The American stock market fell 40 percent and the stocks of large stock markets in the world fell dramatically. The week that world leaders, for instance Dr. Ahmadinejad, the president of the Islamic Republic of Iran, were in New York attending the annual session of the United Nations, the American Secretary of the Treasury, who was the managing director of a huge American financial institute – Goldman Sachs on Wall Street – put forth tireless effort to confirm George Bush’s 700 billion dollar plan in the congress in order to prevent the complete fall of the American banking system which the American economy has not seen since the time of the previous president Franklin Rosevelt, in the 1930s.

This financial crisis and bankruptcy of United States banks was not astonishing for people who read the analyses regarding America and the events of the world in the Kayhan Newspaper. Exactly ten months ago (January 31st, 2008) when Henry Paulson, the Secretary of the Treasury reported about a healthy American economy, the Kayhan Newspaper predicted an American financial crisis in an article titled Depression in America. I wrote there that this country is practically in an economic crisis. The first paragraph of that article was started with: “The depression has started in America, but the government and treasury department have yet to announce it. There is has always been a three to six month gap between an economical event and its official announcement in the history of the American economy. The depression of 2008, which we are still in, is not an exception to this rule. News regarding the depression must be given gradually and slowly because the modern economy has a direct connection with people’s imagination and trust. America has the largest economy in the world and in the age of internationalizing capital, work, and technology any change in the financial and banking areas of America will have a large effect on the international economy.” This has happened.

full article: www.insight-info.com

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1 Comment

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    November 13, 2008 at 3:18 pm

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