"Financial Markets To Crash"

Last week, the Royal Bank of Scotland issued a credit alert stating the global market is going to crash. The U.S. mortgage crisis has affected international banking, as several European banks underwrote many of the loans. Coupled with the war driving up the cost of gas, international markets have been affected as well.

While America is hardest hit by the current financial crisis, banks in other parts of Europe and Britain, have tightened their purse strings and are also charging consumers more for services, trying top compensate for the massive losses they've sustained.

RBS issues global stock and credit crash alert

"A very nasty period is soon to be upon us - be prepared," said Bob Janjuah, the bank's credit strategist.

A report by the bank's research team warns that the S&P 500 index of Wall Street equities is likely to fall by more than 300 points to around 1050 by September as "all the chickens come home to roost" from the excesses of the global boom, with contagion spreading across Europe and emerging markets.

Such a slide on world bourses would amount to one of the worst bear markets over the last century.

Morgan Stanley warns of catastrophe

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