[LI] RBS urged investors to sell everything amid warnings that oil prices could fall to the lowest level in 17 years which may spark a meltdown as severe as the 2008 financial crisis.The bank told investors stock markets could fall 20 per cent this year as it urged them to sell with a stark warning, saying: 'In a crowded hall, exit doors are small. Risks are high.'
Analysts warned of a 'cataclysmic year' ahead for investors and the global economy, BP said it would have to slash 4,000 posts around the world including 600 in the North Sea.
A recession has occurred in the U.S. about every five years, on average, since the end of WWII; and it has been seven years since the last one — we are overdue.
Most importantly, the average market drop during the peak to trough of the last 6 recessions has been 37 percent. That would take the S&P 500 down to 1,300; if this next recession were to be just of the average variety.
But this one will be worse.
A major contributor for this imminent recession is the fallout from a faltering Chinese economy. The megalomaniac communist government has increased debt 28 times since the year 2000. Taking that total north of 300 percent of GDP in a very short period of time for the primary purpose of building a massive unproductive fixed asset bubble that adds little to GDP.
'Cataclysmic years' come and go. Sell everything and you're an instant loser.