SocGen expects equities meltdown

Found this snippet via SomeAssemblyRequired: … C254B78B00

(emphasis added, but hardly required)

Quote? Misquote? Out of context? Does anyone have a more reliable source for this?

Yep, FT Alphaville… … e-krueger/

Hardly surprising, the FED has been propping up the markets for the last 18 months or so,as soon as only the little people are left in, it will be let slide bigtime.

hmm bears getting desperate… this is a buy signal

Do you see oil and gold falling in such a scenario? Presumably if everyone’s poorer, there’ll be big discretionary cuts in oil consumption. Yanks driving sans the air conditioning, for example, cuts fuel consumption big-time.

A bigger cut would come from Americans not using their a/c as much during the summer and cutting on their heating bills in the winter.

I read somewhere (the BigPicture, I think) that petrol consumption in the US is down 2.1% YoY as Americans reduce discretionary travel/move to more economical models. This summer’s driving season will be interesting - it have a big effect on internal tourist markets.

At €1.40 per litre for diesel everyone globally is going to be cutting consumption, every time we push on the acclerator we are spending alot of cash.

Apparently commodities have been piled into with US funds putting some $40 billion either this qtr or previous qtr alone. Globalise that and add leverge and its alot of money being invested.

Expect consumption to fall by anything by 10% in the old world as flights, car trips , 4X4s, heating, insulation, alternatives all start getting serious attention rather than govt spin