10 Outrageous Claims 2009

Saxo Bank (a Danish online investment bank) has made some prophecies for 2009. To see the full list click here.

Some of their outrageous claims are:

2. Crude Oil to $25

The ongoing economic crisis will further dent oil demand throughout next year, sending the price ever closer to $25 a barrel, Saxo Bank said. OPEC production cuts will be hampered by disagreement and fail to stem the slide, it added. (You don't know cheap gas until it hits $25 a barrel!)

4. Italy Could Drop the Euro

Italy could make good on threats to leave the European Exchange Rate Mechanism (ERM) and may drop out in 2009, Saxo Bank said, a decision which would mean the country effectively gives up the euro. The EU is likely to crack down on excessive government budget deficits, which could prompt Italy to leave the currency regulation, it said. (Take a cue from England and stay away from the Euro!)

6. Dollar to Outstrip the Euro

The euro will fall to 0.95 cents versus the dollar in the New Year, before shifting direction and rising to 1.30 cents, according to Saxo Bank. The euro-zone will face a tough year in 2009 as the banking sector will suffer because of its exposure to Eastern Europe, a region that will increasingly falter next year, the report said. (If it turns out to be true I must see the rest of Europe!)

7. Chinese GDP Growth to 0%

Export-led China will be hit by the double blow of a slowing U.S. economy and the souring of commodity-based investments, according to Saxo Bank. Japan will not actually sink into recession, despite gross-domestic-product growth all but disappearing, the report said.