A SERIAL blogger who last year predicted the financial crisis has become a cult figure online for his forecast.

Edward Karan proposed on September 19 real estate prices in Australia would fall 40 per cent over two years from the first quarter of 2008.

“It’s too late, the course is set, the market will crash, its like a runnaway train (sic),” he wrote on news.com.au

“Expect a 40 per cent drop in prices once the bubble is fully deflated, this taking approx 2 years in duration. Tipping point is Q1 2008. This will cause the Australian Economy to go into recession. Sorry for the bad news, but unfortunately there is no escaping it now.”

Yesterday the Australian sharemarket experienced its longest losing streak, falling for an eighth straight day after fears of a US recession continued to brew.

Mr Karan’s forecast sparked heated discussion on news forums around the country, while the controversial blogger _ occupation unknown _ gathered a following of supporters and critics.

He signed off on December 18, on what he believed was the cusp of the financial storm.

“Folks the tipping point has arrived. As such this will be my very final post…My warning has been heard, and today the decline in Australia’s largest asset bubble will slowly but surely start,” he wrote.

“To my supporters, a big thank you. To my opponents, you were warned. Goodluck and goodbye to all.”

“Ed Karan, sorry to hear you’re leaving these forums forever,” bemoaned Sam Brown of Golden Beach.

“I look forward to the next two years - will be interesting to see how your prediction pans out. I suspect you’re right. In fact I’ve just sold my house and moved into a nice little rented flat. I’ll buy again sometime after 2010.

“Meanwhile I’ll be saving $20k per year in addition the staggering profits from selling the house. If you’re right, I’ll owe you a beer!”

But, like all good bloggers, Ed has returned to the forums.

“Your jealous because I have a fan club on News.com,” he told one critic called “shadow” this week at globalhousepricecrash.com .

“Hey for the record, that was an accident, I was just trying to warn people about the Real Estate correction.”