Here are some of the worst predictions that were made about 2008. Savor them—a crop like this doesn't come along every year. You wonder why so many have lost their savings? Keep listening to these people for future predictions and you will be in the soup lines. Unless you realize what is actually coming (A DEPRESSION) the sooner you will prepare for it and SURVIVE!
1. "A very powerful and durable rally is in the works. But it may need another couple of days to lift off. Hold the fort and keep the faith!" —Richard Band, editor, Profitable Investing Letter, Mar. 27, 2008
At the time of the prediction, the Dow Jones industrial average was at 12,300. By late December it was at 8,500.
2. AIG (AIG) "could have huge gains in the second quarter." —Bijan Moazami, analyst, Friedman, Billings, Ramsey, May 9, 2008
AIG wound up losing $5 billion in that quarter and $25 billion in the next. It was taken over in September by the U.S. government, which will spend or lend $150 billion to keep it afloat.
3. "I think this is a case where Freddie Mac (FRE) and Fannie Mae (FNM) are fundamentally sound. They're not in danger of going under…I think they are in good shape going forward." —Barney Frank (D-Mass.), House Financial Services Committee chairman, July 14, 2008
Two months later, the government forced the mortgage giants into conservatorships and pledged to invest up to $100 billion in each.
4. "I'm not an economist but I do believe that we're growing." —President George W. Bush, in a July 15, 2008 press conference
Nope. Gross domestic product shrank at a 0.5% annual rate in the July-September quarter. On Dec. 1, the National Bureau of Economic Research declared that a recession had begun in December 2007.
5. "I think Bob Steel's the one guy I trust to turn this bank around, which is why I've told you on weakness to buy Wachovia." —Jim Cramer, CNBC commentator, Mar. 11, 2008
Two weeks later, Wachovia came within hours of failure as depositors fled. Steel eventually agreed to a takeover by Wells Fargo. Wachovia shares lost half their value from Sept. 15 to Dec. 29.
6. "Existing-Home Sales to Trend Up in 2008" —Headline of a National Association of Realtors press release, Dec. 9, 2007
On Dec. 23, 2008, the group said November sales were running at an annual rate of 4.5 million—down 11% from a year earlier—in the worst housing slump since the Depression.
7. "I think you'll see [oil prices at] $150 a barrel by the end of the year" —T. Boone Pickens, June 20, 2008
Oil was then around $135 a barrel. By late December it was below $40.
8. "I expect there will be some failures. … I don't anticipate any serious problems of that sort among the large internationally active banks that make up a very substantial part of our banking system." —Ben Bernanke, Federal Reserve chairman, Feb. 28, 2008
In September, Washington Mutual became the largest financial institution in U.S. history to fail. Citigroup (C) needed an even bigger rescue in November.
9. "In today's regulatory environment, it's virtually impossible to violate rules." —Bernard Madoff, money manager, Oct. 20, 2007
About a year later, Madoff—who once headed the Nasdaq Stock Market—told investigators he had cost his investors $50 billion in an alleged Ponzi scheme.
10. "There's growing evidence that parts of the debt markets…are coming back to life." —Peter Coy and Mara Der Hovanesian, BusinessWeek, Oct. 1, 2007.
Oops.
i read this blog entry and didn't know whether to laugh or to cry. when will people wake up to the fact that the so-called "experts" and "leaders" are actually well-paid flacks and shills? unfortunately, it will probably take a lot of the forthcoming pain to jolt people into reality. or not. the previous depression made a lot of money for the few (it's primary goal) and gave the rest a "new deal," ww2, and the current fascist business model. all we can do, i suppose is "hope for the best- plan for the worst."
ReplyDeleteVery well said my friend , very well said indeed
ReplyDeleteThe old model of competition must die and a new model of cooperation is going to have to replace it pretty damn fast. Indeed, only those with solid communities around them are going to transition what is coming, and those communities, and society generally, may not resemble anything currently existing. The old order is rapidly aging. The question is what replaces it, not a done deal at the present time, could go many directions. People need to start focussing on the highest good of all concerned in their actions. Otherwise its more slavery, usery and death for centuries to come.
ReplyDelete