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.