Saturday, January 12, 2008

2008 -- Here comes a wild ride

I just found this in my drafts. Written January 12, 2008. The writing on the wall then was so clear even I could see it.

2008 is going to be a very interesting year. And probably not in a good way.

Here are some predictions:
  • We'll see at least one major US bank go away (bankruptcy or acquisition).
  • The housing market won't get better, not even by the end of the year. In fact, the housing bust is going to continue well into 2009.
  • Inflation is going to keep going up (driven by energy and food prices).

Major US banks are hurting for cash in a big way. How bad are they hurting? They've started having to court overseas governments -- there not being anybody else with the proper mix of interest and ability.

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