Denmark-based Saxo Bank is predicting nothing short of economic chaos spanning the entire globe in 2008. The bank claims that the price of oil will surge to $175 per barrel, leading to economic collapses of 25% and 40% by the United States and China, respectively. Furthermore, they anticipate grain prices to double and one-third of large U.S. building companies to go bankrupt. All of this traced to the mortgage crisis in the US that has already slowed down the economy significantly.
Not all is lost, however, as the bank predicts Texas Republican Ron Paul to take the White House in 2008. Also, if the US economy were to slow down as predicted, oil consumption would decrease thus driving down price as well. But, if the Neo-Cons were to launch an attack against Iran — God forbid — the price of oil could catapult up to $250 per barrel.
I know what you’re thinking, as it was probably the first thing I was thinking when I read this article. However, before you dismiss all of this as non-sensical rubbish, know that most of Saxo Bank’s predictions for 2007 came true, so clearly they know what they’re doing and this isn’t some hogwash list put together by some Europeans hungover from too much Christmas Eggnog.
One Comment
Sounds a little far fetched. Most of the pricing built into oil was based on th assumption of an expanding global economy and war with Iran, both of which seem unlikely at this point. We are already hearing expectations of a drop in gas of 50c per gallon.