The 10 Worst Assumptions of 2008; by Rick Newman

Rick Newman has published an interesting article about the wrongful assumptions professionals made for 2008 which never become right in USNews.com site.

For the US and globally for the most part economic conditions worsen as year 2008 progressed. But importantly 2008 will be remembered for the year that turned things around, the year that US saw how powerless and weak their economy is. Hard hit recession in 2008 and its effects on oil prices, housing real state prices, investment banking industry, increase in jobless rate will always provide hands on real time experiences for anyone to learn finance and economics. It was great learning experience how things changed caused by other.

But the great drop in DJI will be the unforgettable remark for year 2008 for US. I wish it was only US that was effected by this, but thanks to or due to the globalization, dependence of other nations on US consumer base mercilessly brought their economies down with it.

Nevertheless, 2008 will be a great educational experience for nations to open their eyes to unavoidable economic destructions.

Below are the main points Newman looked at for the year 2008.

Real estate values always rise over time.
The mighty consumer will keep spending.
A buyer will always emerge.
Banks will be careful with their money.
Don't worry, the smartest guys in the world are working on the problem.
Technology is the solution.
The feds will fix things.
There's plenty of liquidity.
Things will bounce back.
It can't happen to us.

Full article; http://www.usnews.com/blogs/flowchart/2008/12/15/the-10-worst-assumptions-of-2008.html