A big bailout, and other predictions for 2008

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You didn’t ask for them, but here they are: L.A. Land’s predictions for 2008:

--At least one major financial company with exposure to the mortgage market will collapse in 2008, although the collapse will likely be disguised as a last-minute merger.

--Among the investors who will buy bundles of distressed properties will be foreign buyers, unleashing a wave of media coverage about creeping foreign ownership of America’s housing stock.

--Washington will stumble toward an S&L-style bailout of mortgage-backed securities (Lou Barnes calls this ‘nouveau RTC’). The president, explaining the bailout, will say: ‘Let me make one thing clear: This is not a bailout.’

--The Democratic nominee for president will blame Republicans for failing to help struggling homeowners as the economy becomes a major issue in the 2008 campaign.

--Los Angeles homes prices, as measured by the Case-Shiller index, will decline throughout 2008.

--California Attorney General Jerry Brown will launch what he calls a major investigation into foreclosures and foreclosure scams.

OK, there they are, sitting ducks for your withering comments. Now I’d like to hear your predictions -- the serious and the not-so-serious. I’ll choose my favorites out of your predictions and make them into a separate post.