RBS issues global stock and credit crash alert

[TwixVoy]

"The Royal Bank of Scotland has advised clients to brace for a full-fledged crash in global stock and credit markets over the next three months as inflation paralyses the major central banks.

"A very nasty period is soon to be upon us - be prepared," said Bob Janjuah, the bank's credit strategist.

A report by the bank's research team warns that the S&P 500 index of Wall Street equities is likely to fall by more than 300 points to around 1050 by September as "all the chickens come home to roost" from the excesses of the global boom, with contagion spreading across Europe and emerging markets.

Such a slide on world bourses would amount to one of the worst bear markets over the last century"

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/06/18/cnrbs118.xml


Interesting article.

[Jackpine Radical]

1. No shit.

The only question I have--and this is an academic one for me, considering what I have investeed--is the timing.

[TalkingDog]

2. I think DU's daily Stock Market Watch is taking non-monied wagers.

I'm thinking mid-August. But that's blind guessing.

[PetrusMonsFormicarum]

3. The Humungous

I always loved that movie The Road Warrior but I never really thought it would come true . . .

[KharmaTrain]

4. If You Haven't Realized It By Now...

Most smart investors have long gone to the sidelines...locked into guaranteed securities (as guaranteed as they can be) and out of the market. Others have moved into the speculation games...commodities and hedge funds who are doing just fine right now. While bubbles will burst, these are the people who always "seem to know" where to move their money before those bursts occur leaving the poor suckers holding the debris.

This country is stuck in stagflation...less money in the economy and higher costs in production and distribution that in turn means higher prices that lead to less jobs and the cycle goes on. Add to this a credit crunch that is strangling millions and you've got a pretty bleak economic future. As long as this regime runs up defecits that have drastically weakened the dollar and the epeculators keep the price of oil and food high, the downward trend can't help but continue.

Meanwhile we still have those in the corporate media who say things aren't that bad...that this is a "mild downturn". If you're suffering, then it's your fault.

[TwixVoy]

5. Exactly

The rich ALWAYS know where to put the money.