There are only a handful of economists who predicted this financial crisis, or at least its severity.
This is what some of them said about it in its immediate aftermath.
How accurate have they been - so far?
Peter Schiff and Ron Paul
the manager of over $1 billion dollars in investments, says the U.S.
will enter a long period which could be worse than the Great Depression.
Schiff also thinks that the economic crisis might lead to martial law.
thinks that Asia and Europe, after a period of economic downturn, will
"decouple" from the U.S., eventually enjoying great prosperity long
before the U.S. recovers.
Schiff has admitted that he did not
foresee the current rally in the dollar, and his investors - long in
Asian and European stocks - are way down.
Schiff was Ron Paul's
chief economic advisor during his campaign. Paul has himself predicted
the crisis for many years, and has warned that America is spending more
than it can afford. Paul has also repeatedly warned of martial law.
Roubini, the PhD economist, thinks
we are going to have what he calls "stag-deflation", meaning severe
stagnation and deflation. Basically, he thinks that we're heading into a
depression without extreme government action.
He's also warning of possible food riots.
PhD economist Faber, who called both the 1987 crash and the current crisis, believes that there will be a bear rally for a couple of months, and then a further crash.
He is convinced the U.S. will go bankrupt sooner or later.
also thinks that the crisis may spell and end for the traditional
American form of government, to be replaced by martial law or some other
unsavory form of government.
Nassim Nicholas Taleb
highly-regarded investment advisor, and one of the world's foremost
authorities on derivatives Nassim Nicholas Taleb, thinks that
"capitalism I" is over, and things will get very bad before we get to a
new form of "capitalism II", where banks will act like utilities instead
of money-making pirates.
has warned that supermarkets may shut down. While he wouldn't
directly tell Charlie Rose how bad he thinks things will get, he did say
he thinks things will be worse than Roubini is predicting.
Antal E. Fekete and Darryl Schoon
Emeritus of Mathematics Antal E. Fekete and author Darryl Schoon think
that our entire modern society will crash and break down (gold bugs,
they believe all assets will crater except gold).