RBS issues global stock and credit crash alert

RBS issues global stock and credit crash alert

www.telegraph.co.uk

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.

RBS issues global stock and credit crash alert
RBS warning: Be prepared for a 'nasty' period

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

(visit the link for the full news article)

something that should be repeated alot more in the US msm..

it's going to be painful to say the least.. but something I think we need to go through... there has to be a better way of doing things.

but hold on to your a*s!

www.telegraph.co.uk
(visit the link for the full news article)

Morgan Stanley is issuing a smiliar warning

But I thought everything was ok?!?


LMAO..

Well, I am not surprised, I been waiting for the other shoe to drop. Now it has, inflation is on the rise.

There is big trouble everywhere...

When you see behavior like this, you know the impact is near in time and very widespread:

Support for euro in doubt as Germans reject Latin bloc notes

Ordinary Germans have begun to reject euro bank notes with serial numbers from Italy, Spain, Greece and Portugal, raising concerns that public support for monetary union may be waning in the eurozone's anchor country.

Germany's Handelsblatt newspaper says bankers have detected a curious pattern where customers are withdrawing cash directly from branches, screening the notes to determine the origin of issue. They ask for paper from the southern states to be exchanged for German notes.

...

People clearly suspect that southern notes may lose value in a crisis, or if the eurozone breaks apart. This is what happened in the US in the Jackson era of the 1840s when dollar notes from different regions traded at different values.

More...

Ouch.




[edit on 18-6-2008 by loam]

reply to post by pityocamptes


Have you seen a news article on this? If you have can you provide a link? Thanks!

reply to post by cavscout

Morgan Stanley warns of 'catastrophic event' as ECB fights Federal Reserve

The clash between the European Central Bank and the US Federal Reserve over monetary strategy is causing serious strains in the global financial system and could lead to a replay of Europe's exchange rate crisis in the 1990s, a team of bankers has warned.

...

Morgan Stanley doubts that Europe's monetary union will break up under pressure, but it warns that corked pressures will have to find release one way or another.

...

"The tensions will not disappear into thin air. They will find fault lines on the periphery of Europe. Painful macro adjustments are likely to take place. Pegs to the euro could be questioned," said the report, written by Eric Chaney, Carlos Caceres, and Pasquale Diana.

More...

reply to post by loam



THANKS LOAM!

Originally posted by loam
reply to post by cavscout

 

Morgan Stanley warns of 'catastrophic event' as ECB fights Federal Reserve

The clash between the European Central Bank and the US Federal Reserve over monetary strategy is causing serious strains in the global financial system and could lead to a replay of Europe's exchange rate crisis in the 1990s, a team of bankers has warned.

...

Morgan Stanley doubts that Europe's monetary union will break up under pressure, but it warns that corked pressures will have to find release one way or another.

...

"The tensions will not disappear into thin air. They will find fault lines on the periphery of Europe. Painful macro adjustments are likely to take place. Pegs to the euro could be questioned," said the report, written by Eric Chaney, Carlos Caceres, and Pasquale Diana.

More...

I linked this article in my original post, but yes...I think Europe is in much much much more trouble than the U.S. I've been saying this for a while...their currency is too strong and their countries don't have a fiscal policies that align with the ECB...like we do here in the states (good thing, even if you hate the Fed). I think a crash is quite possible, especially if another cockroach is discovered on someone's balance sheet during a Fed hiking period.

reply to post by loam


Holy shiat! Germans rejecting EURO notes!! GREAT!!! The European Union is falling apart! GREAT STUFF.

But of course it will be used to push a cashless society... ``those germans rejected the euros and they crashed the european union economy, now we must force them to accept those by having a cashless society``.

[edit on 18-6-2008 by Vitchilo]

Originally posted by Vitchilo
Holy shiat! Germans rejecting EURO notes!! GREAT!!! The European Union is falling apart! GREAT STUFF.

I'm not a fan of europe in many ways, however the european union has some ver good uses. Before saying such things think it through, if the euro fails there will be massive upheaval in europe, probably leading to violence and damage to infrastructure. Maybe even the fabled martial law, careful what you wish for.

Originally posted by VitchiloBut of course it will be used to push a cashless society... ``those germans rejected the euros and they crashed the european union economy, now we must force them to accept those by having a cashless society``.

Doubtful, if this hapened then europeans would not wanta cashless society. Being cashless would never avoid the current situation, in fact it would make it worse as you oculdn't speculate on currency properly anymore. This won't be used to pusha cashless society, but it may be used to garner tougher financial controls over europe by the central bank.

I just realized that this isn't the thread I created...though I created the exact same thread 7 hours before the OP of this thread did:

www.abovetopsecret.com...

[edit on 18-6-2008 by yellowcard]

Originally posted by loam
reply to post by cavscout

 

Morgan Stanley warns of 'catastrophic event' as ECB fights Federal Reserve

The clash between the European Central Bank and the US Federal Reserve over monetary strategy is causing serious strains in the global financial system and could lead to a replay of Europe's exchange rate crisis in the 1990s, a team of bankers has warned.

...

Morgan Stanley doubts that Europe's monetary union will break up under pressure, but it warns that corked pressures will have to find release one way or another.

...

"The tensions will not disappear into thin air. They will find fault lines on the periphery of Europe. Painful macro adjustments are likely to take place. Pegs to the euro could be questioned," said the report, written by Eric Chaney, Carlos Caceres, and Pasquale Diana.

More...

They are in the same boat as part of the World Bank so this is just another set up by them to screw us even more. A bank in London, Dubai (The same two who Bush tried to sell our ports too)and Morgan Stanley with the rest of the now World Bank owned investment houses in the U.S. also created the artificial high oil prices by locking up 30 percent of the U.S. oil market in long term investments and then speculated the hell out of it. The fact that U.S. oil companies can not get their hands on it has crippled them from helping us.

The market will crash with the economy because of the outlandish price of oil now.

Congress was told weeks ago how to fix the problem and they can by changing two words in one bill that is now law, The same one that let Enron screw California. Congress has done nothing about it so welcome to the New World Order.

There will be a recessionary period where the stock market will lose anywhere from 22- 43% of it's value in a normal downturn. The downturn will last about 1/2 a year to 1.5 years on average. It will take the average investor about 4-5 years to get back to where they were before the stocks started falling, just in time for another downturn.

It's nothing new, we have been through this cycle many times. This time might be a little more on the extreme side given the various economic woes (Housing Bubble, Trade imbalance, Oil prices, Consumer and National Debts ect.) all happening at the same time.

Park your money where you won't lose money, just tread water during the downturn and you will be in good shape afterwards.

Or you can just try to time the market and get slaughtered like most people do. "I can't get out now, I've lost 9% already!", comments like that drive me crazy.

Originally posted by Vitchilo
reply to post by loam

 

Holy shiat! Germans rejecting EURO notes!! GREAT!!! The European Union is falling apart! GREAT STUFF.

But of course it will be used to push a cashless society... ``those germans rejected the euros and they crashed the european union economy, now we must force them to accept those by having a cashless society``.

[edit on 18-6-2008 by Vitchilo]

It is interesting to see this happening.. to be quite honest until I read the article and then researched how the Euro REALLY works, I was flabergasted!

The Euro is operating in the same way the American Dollar did way back during the Civil War era and before..

Member states print their own money based on their own production, essentially they all have their own currency but the currency can be exchanged all over the union.

In theory.. and this is the irony of it .. if ONE country collapses .. their euro will be worth nothing... but can still be traded in other countries as an equal currency. But if they peg their own Euro's to their own GDP, then in theory that single Euro is less then other Euro's.

Germans seem to understand this, and are rejecting currencies from weaker economies. Italy and Spain for instance. Germans seem to believe that given the current eocnomic situation, a crisis is more likely to happen then at any other given time. They also seem to believe that the first countries to fall will be Mediteranian States .. so they are essentially rejecting the entire Latin Bloc's currency! Spain, Portugal, Italy, these currencies marked in Euro's have already decreased in value with Germans, and it leads many to wonder how strong the European Union really is.

Some countries are used for their GDP to bolster the Euro to levels they other wise should not be. For instance when the currency came to existance, France eagerly accepted and promoted it.. but so many French still used Franks.. the idea was that one nation with a weak currency could compare the currency to a smaller nation with a stronger currency, and it would equal out and creat prosperity or other wise, the false sense of prospirety in larger weaker nations. Countries like Luxumburg, Ireland, Germany and a few other smaller states (I know Germany is not small but has a very powerful economy) held the Euro up.

Consequently, countries with weaker economies like Italy, Spain, Portugal, now the Eastern Bloc, and even France experience a stronger currency.. to strong, it hurts the economy now. Other countries like Ireland which assisted in bolstering the currency in the first place, are now feeling the effects worse then other states. A strong currency = higher cost of living, and as the jobs leave, inflation rises and tourism drops.. countries like Ireland, Spain, Italy, France, even Great Britain (though not pegged to the Euro) will experience economic unrest.

The Germans understand that THEIR economy is strong still, but those to the South are falling.. they believe THEIR currency is better, and thus choose Euro's with an X in the serial number. If the economy in Europe crashes, the Euro Zone will most likely fall apart as people scramble to blame one another, and reject an international currency that has unfair advantages to some, and devastating consequences for others. Countries will have to decide whether or not they are being used, or are the users..

Interesting times we live in, for sure. Never before experienced. Where it will go, no one knows!

reply to post by Rockpuck


Dont'cha think that the simultaneous collapse of the Euro and the Dollar resulting in years of financial chaos will perfectly lay the groundwork for the global currency called for by the BIS?

Of course that would mean that they decided to forgo the entire Euro/Amero/Asian block phase of currency "reform".
.

I only found one network in my country covering the RBS warning. None of the American networks covered it as far as I could tell (no surprise). The one news network in Canada that covered this story (CTV Newsnet) didn't cycle it. I caught it once, and didn't hear about it again for the rest of the day.

Hmmph. There is something to be said for validation through exclusion.

reply to post by Rockpuck


This is why i am glad that Britain stuck with sterling. Yes it's caused us trouble, yes imports and exports are troublesome and yes if everything crashes it'll still hurt us. However we will still have a stronger currency than most countries and that makes me hopeful for the future.

reply to post by Gools


Absolutely not.. here is why:

The United States only has a universal currency across all 50 Sates (which are actually individual countries) after a consolidated federalized power crushed State opposition, essentially removing the ability of self determination, and instead of individual currencies, there is a single currency not represented by States, but by the entity of the Federal Government.

That is to say, if Europe want's the same style currency, they will have to relinguish the rights they hold and consolidate governing power into one Federalized Government.

The REASON for this is, just as the Germans understand, all these countries are currently only in an Economic Pact. Nothing more, they are not the same country, do not have the same government, and do not have a Federalized Power to regulate the Economy. They can regulate the currency well enough .. if Italy's GDP drops, the Central Bank says they have to lower the number of Euro's they can print. However in times of economic uncertainty, the Nations of Europe have no ties to each other what so ever .. instead it is a use/used situation as other countries strangle their neighbors in an attempt to stay affloat!

Another example is Great Britain. In GB there are 4 Nations represented (Note the difference of Nation and Country) and all 4 Nations have their own localized government. HOWEVER.. there is a Centralized Government.. in America we simply call it "The English". The country is run much like America, autonomous governments that answer to a higher authority.

A World Currency could never work because the combined economies of the Western World alone would cause wide spread poverty in areas of the Third World. Also the ideas and concepts of the West and the East are so vastly different, a North American Union combined with the Euro Zone would create an economic powerhouse that would have devastating effects on smaller economic Blocs.. this would lead to trade wars, and ultimately wide spread World Wars as the oppressed fight he oppressors. Some would benefit, some would loose.. but in the end, unless National Identity is destroyed like it was in America, a singular currency will never work. You will have people like the Germans picking through stacks of bills looking for German Serial Numbers. The others will be worthless still.

(Spell checker is broken)