Recession will run rampant but housing prices will hit bottom—finally. Also: Consumers dislodge the bling, 3D’session resurgence, and in addition crystal-ball calls

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By BW Staff

Two words apply well for the year just ended: Whoa, Nelly! With the financial markets in chaos, the jobs landscape littered through layoffs, and the greatest in number audacious efflux of federal funds since the Great Depression, most of us are ready to look forward to cheerier times in 2009.

Here at BusinessWeek, we’ve again donned our prognostication helmets and took a gander into the old crystal ball for a few (educated?) guesses at which this new year holds in store. True, we failed to predict the two major events of 2008—the election of Barack Obama and the monetary meltdown rippling across the world thriftiness. But we did nail one call: 2008 was the year of $100-per-barrel oil—we just didn’cheek by jowl anticipate its stunning slide back to $40.

Expect more budget cuts, layoffs, shutdowns, bankruptcies, and mergers. Look as being beleaguered bookseller Borders Group (BGP) to slip into Chapter 11, and with a view to Barnes & Noble (BKS) to take over some of those stores—boundary only a few. Also expect Chrysler to merge into General Motors (GM) at a bargain-basement cost as Chrysler’sitting secluded equity owners at Cerberus Capital race to get that investment off their books. With the rapid falling together of oil prices, and the resulting financial pressures, rely upon two or more mergers among Big Oil. Our best guess? Royal Dutch Shell (RDSA) buys troubled BP (BP), in part to avoid regulatory issues that could come from merging with a U.S. oil company. There will also be terrific affliction on wireless phone prices, causing pecuniary headaches for companies like AT&T (T). Newspaper companies’ profits will continue to shrink; watch for a billionaire such as financier George Soros or New York Mayor Michael Bloomberg to lead a ransom of The New York Times (NYT), which will become part of a not-for-profit corporation by the extremity of the year.

President-elect Obama has nowhere to go but down in his approval ratings, so he may lose more popularity points as me makes tough choices in his forward months. Also expect to see the last vestiges of the Bush Administration head for the exits. Declaring that his toil is done, Federal Reserve Chairman Ben Bernanke power of determination noise abroad he’ll leave the Fed upon the expiration of his four-year term since chairman on Jan. 31, 2010. While mostly not his fault, the recession has hurt his standing with the Obama Administration—and it also has worn him down on a personal level. He’ll be succeeded by Lawrence Summers, creator Treasury Secretary under the Clinton Administration.

There will also be realignment upon the body the global level. Look during the term of Canada to forge stronger labor and trade ties with Europe in an effort to further unhinge itself from the flailing U.S. economy. Canada also resoluteness snub its southern neighbor to be struck more energy and resource deals with other countries—especially China, which resolution endure its ascendance on the world stage in gall of household setbacks. Also, it’s a dexterous bet Vladimir Putin will take again the Russian presidency.