As for the housing crisis, it isn't over yet. In some areas the worst is yet to come. Many more fancy-ARM-mortgages have yet to reset and when that happens foreclosures will go up another notch. California is likely to be hit very hard since over 65% of these fancy credit schemes were written in this state. Housing prices will fall another 10-15% in the best areas.
More job losses too are to be expected, especially in the retail sector, where the numbers were especially poor this holiday season. The whole service sector, by now the most important part of our fluffy hot-air economy, will see huge declines. But manufacturing will not be safe either.
China and India are in for some really nasty surprises. They may find themselves sliding backwards faster than their recent meteoric rises. As for the rest of the world, expect some serious instability in the Middle East. The fallout of Bush's democracy experiment (which was nothing more than a scheme to make his friends very rich) is yet to come.
In short, all is set for another "interesting" year.
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