Société Générale: US Enters Depression, China May Implode

[Mrs. Sharon B. Hodge]

Société Générale: US Enters Depression, China May Implode




Gerald Celente on GoldRadio FM December 23



Societe Generale, one of the oldest banks in France, has the following rosy predictions for 2009:

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Depression ahead, prepare for stock rout: SocGen
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Reuters
Thu Jan 15, 2009

LONDON (Reuters) - Societe Generale said on Thursday that the United States' economy looks likely to enter a depression and China's could implode

In a highly bearish note, veteran cross asset strategist Albert Edwards said investors should now cut equity exposure after a turn-of-the-year rally and prepare for a rout

He predicted that the S&P 500 index of U.S.
stocks could be set for a fall of around 40 percent from recent levels

Edwards also raised the danger of a global trade war with China

"While economic data in developed economies increasingly reflects depression rather than a deep recession, the real surprise in 2009 may lie elsewhere," Edwards wrote

"It is becoming clear that the Chinese economy is imploding and this raises the possibility of regime change. To prevent this, the authorities would likely devalue the yuan.
A subsequent trade war could see a re-run of the Great Depression"

Edwards has long been one of the most bearish analysts in London, first with Dresdner Kleinwort and then with SocGen

But he called in October for clients to increase their exposure to equities, which he said were due a rebound

"We believe that the market is (now) set to quickly slide sharply toward our 500 target for the S&P," he said

The S&P 500 .
SPX stock index is currently at 842, up about 14 percent since hitting a low in November