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The 10 Worst Economic Predictions

From Bernanke’s infamous 2008 “not forecasting a recession” call to Fannie Mae CEO Franklin Raines 2004 “subprime assets are riskless” commentary, the following 10 “predictions” – as opposed to Wien “surprises” – will go down in infamy for their degree of errant-ness…

10) Ben Bernanke, 10th January 2008 – “The Federal Reserve is currently not forecasting a recession.”

A few months later, United States entered one of the wort recessions ever.

9) Herbert Hoover 1928: “The United States are nearer to the final triumph over poverty than ever before in the history of any land.”

The Great Depression started a year after. Stocks lost almost 80% under his presidency.

8) James Glassman & Kevin Hassett (writers of the book : DOW 36000), 1999: “Stocks are now in the midst of a one-time-only rise to much higher ground–to the neighborhood of 36,000 on the Dow Jones industrial average.”

According to their estimates, the Dow Jones was supposed to reach 36,000 points. The following years were marked by the Internet bubble, the Dow went down from 10,000 (book edition) to 7,200.

7) Georges W. Bush, 15th July 2008: “We can have confidence in the long-term foundation of our economy… I think the system basically is sound. I truly do.”

This sentence was pronounced exactly two months before the bankruptcy of Lehman Brothers.

1) David Woo (Analyst, Bank of America), 5th December 2013 about bitcoin: “Our fair value analysis implies a price of $1300″

The future will tell whether it is reasonable to assign a “fair value” to this virtual currency. Meanwhile, the bitcoin still lost 46% of its value Friday…

Source Zero Hedge

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