Cataclysmic, sell everything and your Kiwisaver account



Most workers don’t have the ability to have their money managed by a bank economist and so may not have had any forewarning of the  sudden meltdown in stock markets. The illusion of stability built since 2008 to paper over the capitalist orgy of greed that crashed the global economy is unravelling now and stock markets are melting down.

But then again, it could be worse than that. When the words ‘sell everything’ and ‘cataclysmic’ are the ones being used to describe the looming crash, one should pay attention…

Sell everything ahead of stock market crash, say RBS economists

Investors face a “cataclysmic year” where stock markets could fall by up to 20% and oil could slump to $16 a barrel, economists at the Royal Bank of Scotlandhave warned.

In a note to its clients the bank said: “Sell everything except high quality bonds. This is about return of capital, not return on capital. In a crowded hall, exit doors are small.” It said the current situation was reminiscent of 2008, when the collapse of the Lehman Brothers investment bank led to the global financial crisis. This time China could be the crisis point.

…China’s response to 2008 was to drop a third of a Trillion dollars on building infrastructure they didn’t need. Much of that money was misspent and can’t be paid back. The US have simply printed money and are now so in debt any change in the interest rate will topple the entire thing. Europe has battled with the same forces and lost, while Saudi Arabia’s decision to break the 40 year oil stability in return for military power understanding with the West has been dumped by Saudi Arabia’s continuing oil production to destroy America’s fracking industry, hurt Russia and damage Iran just as their trade embargoes get lifted.

So how does that impact you the dear NZer living in the Shire far away from Mordor?

Most NZers have Kiwisaver now, which means the meltdown impacts you if your money is invested in the stock market. The only Kiwisaver option you can choose which removes you from the stock market altogether is opting for the cash rate. You can do this on your banks website. Most of the media still seem to be on holiday hence the utter lack of explanation as to what is happening overseas. For those who can’t understand why their Kiwisaver account keeps going down, that is because our stockmarket is bleeding out. If you have saved hard for your Kiwisaver account, it might be time to consider pulling your account out of stocks.

RSB told their clients

In a crowded hall, exit doors are small

…the elite are being given guidance to protect their interests, the rest of us are being kept in the dark so that we don’t clog the exits for them.

TDB Recommends



  1. Given the part played by RBS during the GFC I am not sure what to do regarding their advice. There is part of me that thinks it might be time to buy up big on the share market.

    Whatever happens the RBS has zero credibility when it comes to handing out financial advice.

    • Oh believe you me, many of the sharks out there love a market plunge, they tend to happen when things are over valued, and they scoop it all up and wait for it to recover. That’s typically the difference between investors and speculators. Speculators are the fools who thought they were investors, and investors are the sharks who scoop up bargains when speculators get wiped out. While this is of course a generalisation, it holds particularly true with real estate speculation/investment as well.

      As you note, RBS is one of many institutions who know how to work with their top tier investors to bet on failure, profit when it happens, and use that profit to score bargains when the pond life lose their nerve and start dumping shares.

  2. In 2008 we should have gotten the Great Recession v2.0..but didn’t, thanks to both American and Chinese book cooking. Now? Both sides of the Pacific are about to implode into firestorms from the mountains of accumulated fiery stupidity and bullshit.

    We’re not Venezuela but that’s like saying “great news, I don’t have Ebola, I have leukaemia.”

    Market crash = many, many hedge funds slaughtered like cattle. Glorious. 😉

  3. That RBS investment advisor or expert has been quoted as being on the more negative and critical side of assessments for future stock trends. Brian Gaynor said so on Radio New Zealand (RNZ) last night, on the ‘5 o’clock Report’.

    But nevertheless, he seems to be one of a fair few, who see increased volatility.

    What this will result in is what we have already seen much of in Auckland, increased property investment and speculation, as property will by too many be seen as a safe nest egg.

    Our ‘Esteemed Leader’ John Key has led by example, as comments under another post here showed not so long ago:

    He has invested a lot in property, and he seems to know the risks, and hence spread his risks. No wonder he is not that critical of the Auckland housing situation, as he cannot criticise himself, can he.

    It is not without reason that there are so many comparatively wealthy rich and new rich from various growing economies, or former growing economies seek opportunities to buy up property in London, Sydney, Vancouver, and of course now Auckland, same as many other valued patches on this globe.

    They are all seeing the writing on the wall, hence so many Mainland Chinese, Gulf Arabs and others with ample cash go around and look up real estate on offer, also here in Aotearoa NZ, the land where it is still so easy to get land and other property as “investment”.

    In the meantime dire times lie ahead for many workers, starting with ones that only find precarious work.

    And as we have so loyally “trusted” in the endless growth mantra for China, New Zealanders can now prepare for some rough times, apart perhaps the ones that have homes for sale, desired by many offshore “investors” who will soon find more ways around the new rules that have come into force.

  4. Yeah who knows if there will be yet ANOTHER bailout of the banks/corporations and pumping the stock market to the moon this time. However, imo NZers should be far more concerned with the potential collapse of the Auckland housing market because that will likely collapse ALL of NZs major banks (Australia will not come to rescue here, they treat the NZ branches as entirely separate concerns, so e.g. ANZ Australia will NOT rescue ANZ New Zealand). The John Key has already said his preferred option will be a “bail-in”, which means he will wipe any cash savings you might have and swap it for worthless bank shares. My advice would be to not hold too much cash at any one bank (i.e. spread the risk).

  5. The Market has always been a playground of the elite and they could make it swing any which way. No more. Bring down the market one brings down corporate control. Currencies are being revalued/devalued before the National/Global Economic Security and Reformation act kicks in.
    The currency of a near neighbour whose name begins with “V” will see a marked upward revaluation. $100 would be a good investment.

  6. The Market has always been a playground of the elite and they could make it swing any which way. No more. Bring down the market one brings down corporate control. Currencies are being revalued/devalued before the National/Global Economic Security and Reformation act kicks in.
    The currency of a near neighbour whose name begins with “V” will see a marked upward revaluation. $100 would be a good investment.

  7. Why isn’t my blog up in reply. Don’t you want the good news? If you want to do the research yourself go to Karen Hudes Twitter and Jim Willie. Do read up on NESARA. And buy currency of a country whose name begins with “V”. Big upward revaluation!

  8. “Sell everything ahead of stock market crash, say RBS economists”

    This is a self-fulfilling prophecy. If lots of people follow that advice, and start panic selling, demand will collapse, along with prices.

    So, isn’t the RBS advice a bit like telling people in a crowded theatre to set fire to their seats in case the theatre burns down? The crucial question is; what do the RBS and their allies have to gain by setting off a stock market crash?

      • “Why sell”

        Because when the U.S got rid do glass steagal act meaning banks could insure there own trades.

        When a bank goes bankrupt, instead of share holders being payed out first, then creditors.

        Now, derivatives holders are payed out first, then shareholders and so on.

        The game is rigged. About 250 trillion in derivatives are federal insured by about 550 billion.

        And that’s why people who manage less than 1.5 billion sell

  9. If you have not already, research how money is created – and you will discover the ‘ponzi’ scheme that the global financial system is based on, having to grow to keep afloat by creating further loans – and of course the only people who believe we can grow for ever on a finite planet are politicians and economists.

  10. Once again people saving for their super will be hammered and cheated.

    As usual the thrifty and prudent will take a beating while the borrowers and speculators gleam smugly.

    Instead of avaricious ‘financial advisers’ and the likes of Bridgecorp stripping people who can ill-afford to lose funds (the folks before and after the Accursed and Damn’d Baby Boomers ;-D) – it will be the greater sharks.

    The whole game is rigged in perpetuity to the harm of far too many. How can we ‘go off-grid’ on this? Or go co-operative in the way of Mondragon, for example?

    • Not necessarily.

      Those who have borrowed against rising property values will find themselves unable to repay their loans and forced into mortgagee sales if they lose an income.

      If you’ve been “thrifty and prudent” and saved (as long as you can manage to keep your savings) you may have an opportunity of a lifetime to pick up cheap property and shares at the bottom.

      But that’s the problem.

      Very few in NZ right now see a market top in any of our markets; property, stocks or any other. And at the bottom all will be convinced that investing in any market is a fools errand.

      Average Joe buys high and sells low.

      And doesn’t listen to those financial advisors. Some of whom actually know what they’re doing (although many do not).

  11. It’s not all bad actually if Kiwis invested in Kiwisaver keep their eyes on their investment.

    Our NZ50 had its last high in December just last year. December 31st to be precise at 6,324.36.

    While the US indices turned months earlier in May 2015, the UK in April 2015… you get the picture.

    We are lagging. Anyone who now chooses to withdraw from our stock market and preserve their capital has good timing.

    (And in a bear market capital preservation (for those that have any capital) it the thing to do. For those that don’t… debt reduction.)

    Assuming of course that capital was invested in the NZ market and not foreign.

    But even so, if we are in a new huge crash we are still in the very early stages.

    However, it is my experience that such an observation would be greeted with derision. The majority will not recognise a crash until it’s halfway through.

  12. Runaway , abrupt climate change will wipe out every last cent invested in Kiwisaver, get your money out before it evaporates in the ponzi scheme.

Comments are closed.