5 Dire predictions from Market watchers

Meredith Whitney:
Banking Analyst , Oppenheimer & Co

Prediction:
The Treasury's rescue plan won't work. "We do not believe a 'bad bank' structure addresses the root problem of contracting system capital."

Barry Knapp:

U.S. Portfolio Strategist, Barclays

Prediction:
Government policy is masking the true economic picture. "Since December, we have been expecting a retest of the November low. We believe that the policy euphoria associated with the 'bad bank' plan will prove to be short lived.

Niall Ferguson:

Professor of History, Harvard University

Prediction:
We'll look back on this year and realize "every forecast had to be revised – usually downwards – at least three times.”

David Rosenberg:

Chief North American Economist , Bank of America Merrill Lynch

Prediction:
Households lose $20 trillion once the dust settles on the downturn and any government action won't minimize that amount.

Albert Edwards:

Cross Asset Strategist, Societe Generale

Prediction
"A subsequent trade war could see a re-run of the Great Depression."

source : www.smartmoney.com