SocGen – Prepares Clients for China Debacle

January 20, 2011

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The bank said overheating may reach “peak frenzy” in mid-2011.

Non-perfoming loans rise to 20pc (as in early 1990s).

Bank shares could fall 50-75% over the following 12 months.

Inflation to spike, creating a blow off surge in commodities, followed by a collapse.

Copper is “particularly exposed”, and might slump from $9,600 a tonne to its average production cost near $4,000.

Lombard Research : “Until China engineers a more substantial tightening, core inflation is set to accelerate. The longer growth stays above trend, the worse the necessary downswing. China’s violent cycle could be highly destabilising for the world.”

source : UK Telegrpah

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