Royal Bank of Scotland predicts world financial crash
21 June 2008Royal Bank of Scotland (RBS) analysts believe that within the nearest three months the world share market can suffer crash, which will become one of the most scale for last 100 years, predicting, that by September of this year S&P 500 index will lose 22 %. At the same time HBOS bank’s experts consider, that the quantity of the given out loans on purchase of the real estate will decrease on 45 %, and the number of non-returns of credits will grow on 17 %. The bank of Russia also prepares for the next demand for liquidity from banks.
RBS analysts predict longer period of economic growth delay, which will be kept not only within this, but also within the following year. Thus in such conditions Central Banks will appear actually paralyzed and will not be able to undertake anything for inflation restraint. Most of all RBS analysts are disturbed with prospect of increase of rates in the Europe for struggle against inflation that can turn back with sharp toughening of monetary policy. The further decrease in economic forecasts will lead to reduction and according to analysts’ estimations it will lead to decrease of companies’ profits and increase in forecasts of corporate defaults.
