Royal Bank of Scotland advices clients to prepare for crash

[ensho]

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


RBS issues global stock and credit crash alert


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.
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[malaise]

1. I'm watching Paulson on CNBC and he said some

of these financial institutions will fail.
Looks like the $hit is about to hit the fan.

[KansDem]

2. "1050?"

The S&P 500 was 1342.9 when Bush "took" office.

[papapi]

3. Doom and gloom, doom and gloom...that's a legacy * will live with....

rethuglican sleeze bag economics, I told 'em so but they wouldn't listen. Hell yeah I'm gonna rub it in. Trickle down economics sucks big green donkey you-know-whats.

[SpiralHawk]

4. The putrid fruit of the global republiconomics mindset...

[Warpy]

5. The conservatives in both parties manage to do this every time

they take power for too long. They concentrate wealth, depress wages, skew the tax code, encourage thieves through deregulation, and then sit around with their thumbs up their asses when it doesn't look like it's working the way their dogma says it should.

The danger in the future will be if they manage to time it a little better than they did in 1929 and now. They're getting closer, you know.

This might be the last time the blame is put where it belongs, squarely upon conservative dogma infecting both parties.

It's now too late to stop the crash. Our job is going to be to make damned sure everybody who comes after us knows where the crash came from and why.

[robertpaulsen]

6. Kunstler: Three of the world's most important banks have issued imminent financial crash alerts.

The Daily Grunt
~ If I have anything to say
June 18, 2008:

--------------------------------------------------------------------------------

Ominous rumblings from interesting places.
A startling press release hitting the media this morning. The Royal Bank of Scotland warning investors of an imminent stock market crash between now and September. . . adding to the Bank of International Settlements warning of a second Great Depression (June 9). . . plus Morgan Stanley reissuing an older warning of a crash in equity markets. One thing we know for sure: the big banks have postponed the workout of their massive bad debts for about a year by playing pattycake with the Federal Reserve and the Bank of England. It's a game that couldn't go on forever. It has led to paralysis in lending. Meanwhile, these banks have shut down their securitization mills, meaning they are no longer generating the huge fees that they'd become routinely accustomed to. And every month the securities they sit on lose value as the revenue stream is choked down by mortgage defaults.


http://www.kunstler.com/

[Kaleko]

7. Okay, I sold the last remaining stock mutual funds we have

and exchanged them for a cash fund at Vanguard. At a loss :(

[HCE SuiGeneris]

8. And so it comes...

:scared:

[masmdu]

9. I have 1115-1150 as targeted low...however 1050 or even 950 is possible BUT we where there in '03 ..

For my long term "investment" accounts, I would look to scale into long positions from these points...SSO (2xS&P) to sit on for a very long time.

However, getting there also provides opportunity and will be active in my "trading" account with SDS (2xInverse S&P) as well as Index futures.

Just because something is heading down doesn't mean a loss...it can just as easily be profit.

Having said all this...Well projected and broadly announced expectations for the markets rarely materialize...Crashes don't occur when everybody is expecting them...and often act a COUNTER trend indicators....that is to say with everybody scared of financial disaster it is the time to SCALE IN!

By the way, last time I made a similar comment was when everybody thought MeltDown in the markets (SP at 1255 at the time of my post) and I said buy here for run up...we did nearly 200 points from there...Somehow, I think very few listned...oh,well

[NightWatcher]

10. Can we try again for the "Emergency Preparedness" forum here?

we're going to need it