10 worst business predictions of 2011

From a muni meltdown to a recovery in bank stocks to a Yahoo turnaround, we were told a bunch of things would happen this year that didn't even come close.

The banks are healthy
The banks are healthy
In July, one of the banks passing the European Banking Authority's stress tests sent out a press release cheering the results. "2011 EU-wide Stress Test Results: No Need for Dexia to Raise Additional Capital," it read. Three months later, the Brussels-based bank required a government bailout to avoid collapse.

So was the story of the summer's stress tests: they seemed less a true test than a giant charade. Critics jumped on the EBA for giving Drexia and others a clean bill of health for 2011 when anything but the most generous kind of accounting showed the opposite. No doubt investors were reminded of the European stress tests just a year prior, when a group of banks who passed stress tests, including Bank of Ireland and Allied Irish Banks, soon floundered.

By Scott Cendrowski @FortuneMagazine - Last updated December 30 2011: 5:25 AM ET
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