/IRBIS, November 20, 09/ - French bank Societe Generale advises his clients to prepare for a possible global collapse, - it's reported on Nov. 19 by Daily Telegraph, citing the report of the bank.

Societe Generale advises clients to prepare for a possible global economic collapse in the next two years, to consider a defensive investment strategy to avoid the destruction of wealth'', - it's reported by Daily Telegraph.

The report, entitled as the worst-case scenario in case of debt, asset managers and team of the Bank notes that the government rescue measures that were implemented last year, due to private obligations that fall on the shoulders of government, creating a new set of problems.

No one can say with certainty whether we are really to avoid the prospect of global economic collapse'' - it's listed in the 68-page report of the bank.

According to the forecast, dollar will decline further of global market rally will test new lows in March. Oil might slip to $ 50 per barrel in 2010.

The report stated that the government has already withdrawn its entire financial safety cushion. Even without new spending public debt would explode within two years to 105% of GDP in the UK, 125% in U.S. and euro-zone countries, and up to 270% - in Japan. World public debt will reach $ 45 trillion.

High public debt looks quite unstable in the long term. We have almost reached the point of no return public debts'', - it's mentioned in report view Daniel Fairmont, the main asset manager.

In the U.S. debts of individuals will also grow. In this case, even if amount of savings in the United States stabilizes at 7% and still take nine years to reduce the ratio of household debt to income to a safe level of 1980.

Societe Generale advised to sell dollars and shortened positions on so-called cyclical stocks - sectors of technology, automobiles and travel.

Emerging markets do not continue to rise as ironic, but they are more dependent on economic growth in the U.S. than the Wall Street. Sound investment Societe Generale analysts say investment in agricultural commodities, especially sugar.

[2009-11-20]