Monday, December 29, 2008

The Worst Predictions About 2008

From Jim Cramer's "No! No! No! Bear Stearns is not in trouble", said on CNBC on March 11, 2008, to "I think you'll see (oil prices at) $150 a barrel by the end of the year" by T. Boone Pickens on June 20, 2008.

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 "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.
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source: The Worst Predictions About 2008
BusinessWeek, Monday December 29, 10:46 am ET
By Peter Coy

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