“I was in David’s class in July of 2008, the Tuesday after IndyMac Bank collapsed. One of the students asked if this is capitulation and is it time to get back into financials?
“David said, ‘No! This is the beginning of a long ballgame that may go extra innings.’ He made a prediction that in mid-September a major bank would collapse, the federal government will step in and we will see what happens after that. He advised us to get out of the market.
“One student asked which bank would collapse. David did not want to answer the question. The student then asked, ‘What do you consider to be a major bank?’ David paused and said with a grin, ‘Something the size of Lehman Brothers.’” (Lehman Brothers filed for bankruptcy on Sept. 15, 2008.)