Worst-case scenario Society for in General: Global economic collapse
Friday, November 20, 2009
The French bank says Society in General outlines three scenarios for the economy. In the worst-case scenario there is a very gloomy picture displayed.
Banks not only enable the most likely scenario for investors, but also scenarios where the probability that they come out not so great, but when they hatch, then the consequences are enormous. In the worst-case scenario shows the great Société Générale is extremely pessimistic.
What if everything goes wrong, so ask away Societe Generale. The credit crisis is largely averted, but in its place we get a state debt crisis, the bank said. The debt of many countries has increased enormously and therefore authorities will soon have to cut back substantially. This will lead to falling prices, rising unemployment and Japanese states.
Bonds, gold and agricultural products
Investors will in such a worst-case scenario, the U.S. dollar and equities sales (mainly European equities, as the stagnant real foothold here. Where should investors their money than in stabbing? According to Societe Generale investors should step in government (especially the old , where a higher nominal interest is paid), in agricultural products and gold.
The full report: Worst-case scenario debt: Protecting yourself against economic collapse