Bank predicts Ron Paul win, US slump

Denmark-based Saxo Bank predicts Ron Paul presidency in 2008, saying US economy will plunge into a depression prior to the election. The Bank predicted that Ron Paul, US congressman and Republican presidential candidate, will win the US 2008 presidential election. Saxo Bank says the US economy will shrink by 25% and the Chinese economy will decrease by 40%. The economic downturn will come about as a result of the housing crash. Ron Paul has been critical of the Federal Reserve and has blamed the Federal Reserve for causing the real estate bubble and crash. Paul has said that the loose monetary policy of the Fed had artificially inflated real estate prices which lead to the collapse. Paul supports 'Sound Money' and opposes the Federal Reserve's 'Inflation Tax' and says that he wants to prevent a dollar collapse. Saxo Bank also predicts $175 a barrel for oil and the price of grain will double. Some have predicted that oil will climb to $250 a barrel if the US attacks Iran. The bank also predicts that 30% of large building companies will go bankrupt.

Would it be correct to say that Ron Paul is something of a "dark horse" presidential candidate? In other words, he could seem the least likely to win the 2008 election?

I can think of more then a few less likely.  His problem resides in that his ideas are so different, that he will have a hard time expanding his base.  

It also would depend on the situation of the nation. For example, Abraham Lincoln was re-elected in 1864, considering that the cινιℓ ωαr was still going on.

I don't know what to say.  You mean that because of the article that started this thread ?   I don't give much credence to it. Neither to it's likelihood nor in the logic that the events would propel Ron Paul.

Trauma in the economy, should it come would call for someone known and trusted, not a roll of the dice candidate.    

I don't buy any of it.

It's an interesting prediction, nevertheless.

Matthew

Whats interesting above all to me is that a fonancial institution would make such a outlandish prediction.  It's not very prudent and could be damaging to their reputation.

Again that litmus test.  Do they stand to loose anything.  I'm surprised by this prediction.