Interesting reading .. ?

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2008 has been marked by astonishing and market-changing events including a $100 fall in the price of oil, the drop to zero of U.S. interest rates and the collapse of Wall Street giants such as Lehman Brothers. Next year could bring more, equally unbelievable, happenings such as another 400 points being wiped off the S&P 500 and a slump in Chinese growth to zero, according to a report from Saxo Bank's "10 Outrageous Claims 2009."

these are a some of the 10:

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.


S&P 500 to 500
The S&P 500 will fall to 500 points in 2009 as slowing corporate earnings will drag on the U.S. index, according to Saxo Bank. Earnings will slow because of a continued consumer recession, lead by the credit shortage. An increase in corporate funding costs, falls in house prices and a slowdown in investing programs will also add to the weakness, the report said.


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.


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.


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.


Commodities Prices to Plunge
Commodities are facing widespread weakness next year with the Reuters/Jefferies CRB Index to drop 30 percent, according to Saxo Bank. The consensus belief that demand has been outstripping supply for years might not even be true and more stockpiles could be revealed, the report said.


Yen to Become Currency Peg
Asian countries could shun dollar pegs in favor of the Chinese yen next year, according to Saxo Bank. China's economic, political and cultural influence is growing and shifts in market re-evaluations will favor the country, the report added.




"Saxo Bank is world renowned for its success in exploiting new business opportunities offered by the Internet. In Denmark's financial community Saxo Bank remains highly controversial, with its founders' do***ented history in so-called bucket shops and media stories on fictive market rates on the SaxoTrader.
Saxo Bank currently employs almost 1100 employees. In September, 2008, Saxo Bank fired about 340 employees, for purely rational purposes. According to the Danish newspaper Boersen, at the same time the bank was accused of repeated manipulation with its Wikipedia article. The story attracted some media and blogger attention in Denmark"





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