RBS issues global stock and credit crash alert

[palilover 1]

Looks like I better stock up on ramen noodles before they rise from .25 a pack to $1.25 a pack:)

http://www.telegraph.co.uk/money/main.jhtm...18/cnrbs118.xml

"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."

[w¡n9Nµ7 §£@¥€r 123]

Good post, palilover!

Here are some good excerpts:

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.

...

"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.

RBS expects Wall Street to rally a little further into early July before short-lived momentum from America's fiscal boost begins to fizzle out, and the delayed effects of the oil spike inflict their damage.

...

Ultimately, the bank expects the oil price spike to subside as the more powerful force of debt deflation takes hold next year.

[w¡n9Nµ7 §£@¥€r 123]

Debt deflation

A situation in which the collateral used to secure a loan, or another form of debt, decreases in value. This can be detrimental to the borrower, as it may lead to a restructuring of the loan agreement or even a loan recall.

...

A mortgage, which is a form of secured debt, presents a good example. Let's say you purchased a home by taking out a mortgage. That same home would be secured as collateral for the loan, meaning that if you defaulted on payments to the bank, the home would be repossessed by that same bank. If the potential selling price of the home decreased in value while you were still making payments to the bank, you would be in the middle of a debt deflation scenario.

[♥JP♥ 5]

Debt deflation

A situation in which the collateral used to secure a loan, or another form of debt, decreases in value. This can be detrimental to the borrower, as it may lead to a restructuring of the loan agreement or even a loan recall.

...

A mortgage, which is a form of secured debt, presents a good example. Let's say you purchased a home by taking out a mortgage. That same home would be secured as collateral for the loan, meaning that if you defaulted on payments to the bank, the home would be repossessed by that same bank. If the potential selling price of the home decreased in value while you were still making payments to the bank, you would be in the middle of a debt deflation scenario.

Welcome to California....

[w¡n9Nµ7 §£@¥€r 123]

Debt deflation

A situation in which the collateral used to secure a loan, or another form of debt, decreases in value. This can be detrimental to the borrower, as it may lead to a restructuring of the loan agreement or even a loan recall.

...

A mortgage, which is a form of secured debt, presents a good example. Let's say you purchased a home by taking out a mortgage. That same home would be secured as collateral for the loan, meaning that if you defaulted on payments to the bank, the home would be repossessed by that same bank. If the potential selling price of the home decreased in value while you were still making payments to the bank, you would be in the middle of a debt deflation scenario.

Welcome to California....

Only if you bought in 04/05

[♥JP♥ 5]

Debt deflation

A situation in which the collateral used to secure a loan, or another form of debt, decreases in value. This can be detrimental to the borrower, as it may lead to a restructuring of the loan agreement or even a loan recall.

...

A mortgage, which is a form of secured debt, presents a good example. Let's say you purchased a home by taking out a mortgage. That same home would be secured as collateral for the loan, meaning that if you defaulted on payments to the bank, the home would be repossessed by that same bank. If the potential selling price of the home decreased in value while you were still making payments to the bank, you would be in the middle of a debt deflation scenario.

Welcome to California....

Only if you bought in 04/05

Or 0 down with a Neg Am loan.....

[w¡n9Nµ7 §£@¥€r 123]

Debt deflation

A situation in which the collateral used to secure a loan, or another form of debt, decreases in value. This can be detrimental to the borrower, as it may lead to a restructuring of the loan agreement or even a loan recall.

...

A mortgage, which is a form of secured debt, presents a good example. Let's say you purchased a home by taking out a mortgage. That same home would be secured as collateral for the loan, meaning that if you defaulted on payments to the bank, the home would be repossessed by that same bank. If the potential selling price of the home decreased in value while you were still making payments to the bank, you would be in the middle of a debt deflation scenario.

Welcome to California....

Only if you bought in 04/05

Or 0 down with a Neg Am loan.....

Those people should have their pics in the dictionary next to the entry for 'dumbass'

[amiquechu 0]

Looks like I better stock up on ramen noodles before they rise from .25 a pack to $1.25 a pack:)

http://www.telegraph.co.uk/money/main.jhtm...18/cnrbs118.xml

"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."

That sounds just peachy. It would be fun to watch how fast the numbers in our retirement accounts could plummet.

[♥JP♥ 5]

Debt deflation

A situation in which the collateral used to secure a loan, or another form of debt, decreases in value. This can be detrimental to the borrower, as it may lead to a restructuring of the loan agreement or even a loan recall.

...

A mortgage, which is a form of secured debt, presents a good example. Let's say you purchased a home by taking out a mortgage. That same home would be secured as collateral for the loan, meaning that if you defaulted on payments to the bank, the home would be repossessed by that same bank. If the potential selling price of the home decreased in value while you were still making payments to the bank, you would be in the middle of a debt deflation scenario.

Welcome to California....

Only if you bought in 04/05

Or 0 down with a Neg Am loan.....

Those people should have their pics in the dictionary next to the entry for 'dumbass'

That will be one big a$$ dictionary!

[Hilarious Clinton 452]

Why wasn't Troll the OP on this doom and gloom story?

[w¡n9Nµ7 §£@¥€r 123]

Looks like I better stock up on ramen noodles before they rise from .25 a pack to $1.25 a pack:)

http://www.telegraph.co.uk/money/main.jhtm...18/cnrbs118.xml

"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."

That sounds just peachy. It would be fun to watch how fast the numbers in our retirement accounts could plummet.

The bright side is, if you're young and have a few decades left to retire, all the cheap ####### you accumulate in your 401k during the Second Great Depression (assuming you can hold a job) will be worth a LOT later.

[amiquechu 0]

Looks like I better stock up on ramen noodles before they rise from .25 a pack to $1.25 a pack:)

http://www.telegraph.co.uk/money/main.jhtm...18/cnrbs118.xml

"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."

That sounds just peachy. It would be fun to watch how fast the numbers in our retirement accounts could plummet.

The bright side is, if you're young and have a few decades left to retire, all the cheap ####### you accumulate in your 401k during the Second Great Depression (assuming you can hold a job) will be worth a LOT later.

True that.

[Ban Hammer 13,337]

Why wasn't Troll the OP on this doom and gloom story?

he's been slacking.