Predictions 2008: World Events and the Economy

I'll put on my Nostradamus floppy hat and make with some 2008 predictions. These come right off the top of my head:

World Events:
1. Obama wins the election and becomes President in 2008

2. The war in Iraq drags on but a plurality of the troops are recalled and the Iraqi military takes over security duties. Many scores are settled but insurgents are dealt serious blows and become a non factor by the end of the year. Chaos continues for a while but starts to settle down by the end of 2008. Iraq becomes a page 3 story.

3. Iran agrees to a nuclear framework that is negotiated mainly by France and agrees to allow inspectors into their facilities. They continue nuclear bomb research in secret. Sarkozy wins the Nobel Peace Prize.

4. Musharraf forced out under international pressure after widely contested election and violent protests. Pakistan remains a smoldering trouble spot as Al-Quida and the Taliban tries to destabilize their government.

5. Obama attempts to put out feelers toward Al-Quida but is widely criticized for the move. There are no terror attacks in the US as Al-Quida turns to Pakistan and also fighting against the Americans in Afghanistan. Afghanistan is still a page 5 story and becomes the so-called forgotten war by the end of 2008.


Economy:
1. The subprime mess is widely contained but the economy slows noticeably in the first two quarters of 2008. The economy doesn't drop into recession but the market corrects 10% but ends up recovering by the end of the year. Congress bends over backwards to save people about to lose their homes to the tune of billions of dollars. It is a subprime bailout similar to the savings and loan bailout of the 80s.

2. Technology is a laggard for the year but the Google Phone is introduced to the same fanfare as the IPhone. Apple starts to sell movies and HD programming from their IStore.

3. Alternative Energy becomes the big buzzword for 2008 with Congress passing various bills aimed at reducing energy use and increasing subsidies. Solar, Wind, and Farming stocks become 2 and 3 baggers as oil stays stubbornly high. Ethanol Stocks still get rocked on oversupply concerns. However regular Energy Stocks end up outperforming after the correction even though they have their subsidies stripped. More nuclear plants are slated for construction in 2008 as the idea of nuclear power becomes more accepted due to examples set by both France and Japan. The idea of nuclear power becoming "green" begins to take shape.

4. Sovereign Wealth funds become this years Hedge Funds as they put their billions to work while the dollar remains very weak throughout 2008. There are several high profile attempted buyouts and 10% stakes put in by the Saudi's, the Chinese, and the UAE.

5. Health Care recovers very quickly after the correction but the concerns raised by Obama's health care plan causes volatility in the stocks throughout 2008. Dendreon is passed by the FDA on their preliminary data due to pressure by Congress. They start to market their product by mid-2009.