Royal Bank of Scotland Warns Its Customers of a Financial Markets Crash

Don't see this action often-a major bank warning of a market meltdown. YMMV. FWIW.

[link to jessescrossroadscafe.blogspot.com]
17 June 2008
Royal Bank of Scotland Warns Its Customers of a Financial Markets Crash


The initial reaction we had was that RBS was doing some 'reverse jawboning' on Monsieur Trichet of the ECB with regard to interest rate increases. We don't follow Europe closely but we think increases by the US Federal Reserve are strong dollar fantasies for all the reasons which we've outlined in previous discussions.

Still, its rare to read such a specific prediction of a 300 point decline in the SP within three months from a 'name' banking institution which ought to be in a position to render an informed opinion.

But it does fit with our bias here to be prepared for the worst, and if it does not come, then so much the better for us all. Our outdoor activities have blossomed into a case of Lyme disease, so we'll be working lighter hours for at least the next month or so while time and the proper medicines do their work. Too bad such an effective remedy is not in the medical kit of Dr. Bernanke. Or is it?

RBS issues global stock and credit crash alert
By Ambrose Evans-Pritchard
11:44pm BST 17/06/2008
UK Telegraph

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.

Last Edited by Phennommennonn on 03/29/2012 07:59 AM