The continued bursting

I was browsing around the SMU website and found this interesting and rather dire prophesy from SMU economist, Ravi Batra, who spot-on predicted the extant mortgage crisis. In a word, grim:

The single most worrisome global economic problem today is the U.S. housing bubble that has been primarily financed by foreign money. While it is in the self-interest of foreign governments to finance the U.S. trade deficit, private groups have no such interest or obligation. The continued bursting of the U.S. bubble will result in increased loan defaults and could start a foreign stampede out of American assets, leading to a collapse of the dollar by the end of the decade.

This from a guy who previously predicted

• The ayatollahs would take over Iran in 1979.
• Soviet Communism would vanish by the end of the century.
• The United States would be entangled in a major fight with fundamentalist Islam starting around 2000.

Yikes.