RBS' Bob Janjuah: "THIS IS AN UBER BEAR EARLY WARNING ALERT!"

The Business Insider ^ | 5-24-2010 | Vince Veneziani

[blam]

RBS' Bob Janjuah: "THIS IS AN UBER BEAR EARLY WARNING ALERT!"

Vince Veneziani
May 24, 2010, 9:11 AM

Permabear and RBS economist Bob Janjuah sent out an early warning today in his "Bob's World" newsletter.

Janjuah reminds us that he called this 10% S&P sell-off back in late April in the last edition of "Bob's World" and that things are about to get a lot worse. His key points include:

* "Sovereign limits and sovereign credibility concerns are not a future risk - they are HERE."

* The UK and China are undergoing voluntary/pre-emptive tightening; one could argue it's over concerns of inflation.

* "Outlook on U.S. Treasuries is bullish for at least the next 6 months."

* China is in "official Bear territory."

* "Europe in particular has signed off from the growth path and is now firmly placing itself in the Japan style multi-decade deflation/despair path."

* "The political situation in the US is turning/will turn deeply RIGHT - the Tea Party folks will have a huge say on how the US is run post AND into mid-terms."

* "Policymakers are (nearly) all in, some have lost all credibility (clearly Europe currently dominates this loss of credibility right now), others are close..."

The final debate from Janjuah is in regard to the Euro. He argues that for the Euro to have any hope of recovery, Greece must be put into restructuring "ASAP." If Greece is the Eurozone country that is allowed to set and control the terms of a bailout instead of a responsible nation such as Germany, the Euro will again, undoubtedly fail.

Says Janjuah, "For now, the Eurozone has joined the club currently only occupied by Japan since the late 80s/early 90s."

[SNIP]

[9YearLurker]

And the US turning right is not a good thing?

[Fido969]

Probably means the market is about to go through the roof.

[lmr]

And the US turning right is not a good thing?

For the long term, yes. However, these fat cat speculators have been pining for another Stimulus and know that it isn't coming now. They were counting on it and now it's gone. As long as the taxpayers are on the hook for propping up a failing economy, they can have the good life. In the short term, they don't like this because it creates uncertainty for them. Their fortunes should not rise and fall on our backs. Let them starve, I say.

[blam]

"Probably means the market is about to go through the roof."

The Market is down 95 as I type. See here.

I thought the PPT would have its work cut out for it today.

[blam]

Gold Is A Horrible Investment, Too, Says Prechter (Depression Foregone Conclusion)

[9YearLurker]

Did you see that Rasmussen has 63% of Americans now backing Obamacare repeal? Would that he and Rasmussen are right and we relive 1981 again, taking the short-term tough medicine to save us and the world.

[Hostage]

They will never starve and if you pay close attention you will see many of them lining up behind the “Right Wingers” when they see them emerging to take Congress.

And they will insult everyone’s intelligence by claiming they were always to the right of Attila the Hun.

Can you say Romney?

[Fido969]

The Market is down 95 as I type

It's a fake! A bluff! Trying to draw you in!

[NaughtiusMaximus]

Come back little ‘vester!

The worst is behind us.

(Unfortunately, the Worst is very, very well endowed.)