There have been many cultural changes so far in 2008.  Some of these changes are in response to the rapid increase in the price of oil and other commodities.  Some of these changes have been due to technological innovations.  In both cases new behavior patterns are being established that will, to some degree become permanent and will create new dynamics in certain industries.  Today we take a look at some of the predictions made here last January.

Shopping

The predicted shopping trends predicted were written with a long term view.  What is interesting is that the high price of gasoline has accelerated the speed of implementation of some of the forecasts.  On shopping, this column forecast:

“Shopping behavior will noticeably change……purchases will go down per capita. This will due to belt tightening but also due to the effect of the explosive growth that on-line sales will now have on off-line sales.”

This forecast was based both upon the long term up trend of on-line shopping but also upon the short term pessimism felt about the economy.  When people feel uncertain about their economic future they cut back on major expenses.  This explains the significant decline in auto sales this year and the bankruptcies of several retail chains.  What has been interesting is the reality that much of the growth in on-line sales at the expense of off-line sales is due to $4. a gallon gasoline.  When one can order on-line and have the merchandise delivered with low cost or free shipping, it is cheaper …

In the column “2007/2008″ published on January 1, 2008 I made a prediction concerning media that is worth revisiting.

At the beginning of the year the entertainment industry was in the middle of the writer’s strike.  I wrote:   “The writers’ strike in the entertainment business is now two months old. Its’ length, the animosity it has engendered and the immediate consequences of it are significant.  It has within it the seeds of structural and permanent change in the entertainment business……While the detailed outcome of the strike is not clear, what is clear is that it will have a permanent structural impact on the entertainment business.  It is a “change event” of some magnitude.”

This has turned out to be an accurate prediction.  All one has to do is take a look at the broadcast networks’ schedules to see the affects of the writer’s strike.  The once proud networks, home to magnificent dramas and classic comedy, now are reduced to filling evening after evening with reality competition shows.  Who wants to marry the farmer?  Who is the best celebrity dancer?  Which grossly overweight contestant will lose the most pounds?  These programs all fit under the umbrella title of ‘reality programming’ yet we know that they aren’t real in the true sense, but are staged, rehearsed, manipulated and highly edited.

Broadcast television through the decades was defined by great writing.  Think Rod Serling, Norman Lear,  Matt Groening and many others.  The networks stood for the highest quality television.  This quality came from great writing. The …

In my columns of forecasts for 2008 I made clear and distinct predictions about debt, the housing market and the stock market.

Debt

On January 1 I wrote:

“The key economic word for 2007 and even more so for 2008 will be “debt”.  It is debt that is the true economic issue for the individual, the company, the state, the country, the world.  How all of these economic entities deal with debt will be one of the two key economic issues we will face in the coming years.  Energy of course is the other.”

On    in a subsequent detailed column on debt, I followed this up with:

“The four debts referred to here are personal, corporate, city and state and federal.  All of them feel as though they are beginning to come home to roost and the outlook, if not faced and dealt with, will come together with dire consequences.”

Well, this wasn’t too difficult to predict given the sub-prime mess that started to surface a year ago.  It is clear that the mortgage debt problem in the U.S. is unprecedented and is tied to the collapse of the housing industry discussed later in this column.  It now seems to millions of Americans that a disproportionate amount of household spending is going toward either debt or energy. This is the pain that individuals are feeling.  It is what is being covered with wall to wall media coverage.  This mortgage problem will test the perception of soundness of the financial system.  The system will survive, …

Regular readers know that I have long predicted the current price of oil and that we are now moving through Peak Oil These subjects were included in my “Forecast for 2008″

To quote from that January 9, 2008 column:

“In 2008, gas will, for a period of time reach $4 on the national level. A year ago I predicted that oil would rise above $80. Three months ago I predicted that the price would rise to $100 and that the trading range for oil will be $80 - 125 a barrel for the next year…but there could be several situations that could drive the price above $125.”

Well sure I was right about the rapid run up in the price of oil and the price of a gallon of gas. At the time I was one of the few voices with this forecast. The interesting thing is that when I made the predictions they seemed outrageous to many people and yet they have turned out to be conservative. In a follow up column on April 27 titled “The Short and Long Term Price of Oil”, I revised my price predictions upward:

“I now think that the core trading price range of oil for the next 18 months will be $95 - 135. I seriously doubt it will ever dip below the lower price, and if it does, it will be temporary. I do however think that that there are any number of scenarios that could provoke a rapid price run up …