Janjuah Is Calling for 550 on the S&P

RBS' Chief Credit Strategist, Bob Janjuah, is back making some bold bearish pronouncements, found via Zero Hedge and this now dead link on Pragmatic Capitalist:

I do however think that we are VERY MUCH in the tail end of the correction of the Oct 07 to Mar 09 bear move, where S&P lost nearly 60% from peak to trough, and where the correction from the Mar low would, at 1120, represent the 50% retrace. Once what I assume is a bear mrkt correction finishes, over the next month or so, I expect the Bear to return with vengeance and I retain my call for NEW LOWS in equities. That’s 550 S&P!!

Okay, here are some meatier excerpts that go beyond the bold 550 call:

HISTORY tells us that this will end in failure, with ugly consequences, the net result being MORE DEBT that needs to be repaid thru vicious spending cuts & higher taxes, a (monetary) inflationary BUST and/or a currency shocker - to be swiftly followed by a longer term Debt Deflationary bust. So, in 1 line, all I think is certain - if you think like me - is that the longer the current bubbles persist & the bigger these bubbles are blown up, the BIGGER the explosion will be when it all goes POP. And realistically, I am talking weeks/moths, NOT qtrs/years. YOU may be smart enough to 'get out' of risk in time, but the overwhelming majority will not. And at that time, there will be NOBODY left to bail us all out......

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When risk assets top out - level, timing - is always difficult to predict. I think its weeks/months away, and I very much think we are in the deep tail of the risk asset rally. I know a lot a smart folks who think this can go higher and for a bit longer then I think, and I can see the argument. But nearly all the folks who I respect and have talked to for a long time agree that if it goes on for much longer then it will end in a terrible mess.