RBS (Royal Bank of Scotland) issues global stock and credit crash alert

[Pale Blue Dot]

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.

"I do not think I can be much blunter. If you have to be in credit, focus on quality, short durations, non-cyclical defensive names.

"Cash is the key safe haven. This is about not losing your money, and not losing your job," said Mr Janjuah, who became a City star after his grim warnings last year about the credit crisis proved all too accurate.

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

I think it's extremely significant that a bank is making this warning.

[fasttense]

1. Oh God it's going to get worse. n/t

[druidity33]

2. i love that

they use this phrase:

"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."

(my emphasis)

[formercia]

3. The dead stinking chicken

The best way to cure a dog of chasing chickens is to hang a dead one around their neck until it rots off.

[lonestarnot]

4. Hold on to your hats kids! Going down!

[friendly_iconoclast]

5. Don't neglect another article linked on the same page...

basically stating that their will be a currency meltdown between the euro and the dollar.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/06/16/bcnecb116.xml&CMP=ILC-mostviewedbox


News just keeps getting better and better, eh?