Next Great Depression?

Greed and high oil prices could spark meltdown

…While we debate nationalized energy vs free capital forces, and whether I’m a Marxist or not — dire warnings are hinting that if we don’t stop this madness, we’re heading to the biggest meltdown since the Great Market Crash of 1929 and the next Great Depression.

“A very nasty period is soon to be upon us — be prepared,” Bob Janjuah, a credit strategist for the Royal Bank of Scotland, wrote in a report that sent shockwaves through the global financial community.


Janjuah is warning that these skyrocketing energy prices are inflicting big damage by fuelling inflation and paralysing major central banks, who may be forced to hike interest rates at a time economies are slowing and the U.S. subprime crisis is sending a tidal wave around the world, sparking a global credit crunch.

Janjuah says the crash will hit within three months, with Wall Street’s S&P 500 crashing by more than 300 points as “all the chickens come home to roost” from the excesses of the global boom.

Toronto Sun