RBS predicts severe crash

Discussion in 'Wall St. News' started by NY_HOOD, Jun 18, 2008.

  1. Royal Bank of Scotland issues global stock and credit crash alert - Daily Telegraph

    Daily Telegraph reports 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 paralyzes 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...
  2. Sounds good.
  3. S2007S


    wow, interesting prediction. :)

    This market is headed toward march lows, who knows if it bounces at that point and ends higher by the end of 2008, or does it drop right through those support levels and show us new fresh lows on all indexes for the year. HMMMM.
  4. This tends to make me bullish. Time for me to put my stock-trad3r rosy tinted glasses on...

    Outlooks are already being adjusted to $135 oil. Fedex released earnings today to price in current fuel costs. For things to get worse, oil needs to go higher - a lot higher. And how does oil go higher with recession-inspiring demand destruction? The crash everyone is expecting is more likely a new bull market rather than the black swan.

    The nasty shit has already happened. If much nastier shit happens, I agree of course.

    AFAIK, the next threat is to IB's if oil *collapses* (which is good for the rest of the market)... think of the billions of losses they are going to have to account for.

    Not buying (err... selling) it.
  5. been long* this market and loving it

    *currently long SKF from 106 :)
  6. As long as helicopter Ben still chairman of the Fed, we will not have a down market. He will just inflated the dollars to rally the market. Most people don't care and don't understand anyway. As long as the Dow is going up, it's good.
  7. Daal


    who cares that major US banks and financials institutions are technically insolvent, its not like credit is important
  8. What are you talking about? They've taken their hit - the fed is here to back the credit markets up. Book values have fallen (yes, I agree equity has been wiped out that has to be *earned* back). But time to move on. Credit spreads don't agree with you.
  9. S2007S


    great stock to trade, traded it many times, right now Im out of it, back in UYG.
  10. Daal


    you mean the ones that were pricing in the boom of a lifetime in jun 07?
    #10     Jun 18, 2008