{"id":16436,"date":"2016-01-13T08:54:14","date_gmt":"2016-01-13T13:54:14","guid":{"rendered":"http:\/\/olduvai.ca\/?p=16436"},"modified":"2016-01-13T08:54:14","modified_gmt":"2016-01-13T13:54:14","slug":"albert-edwards-hits-peak-pessimism-sp-will-fall-75-global-recession-looms","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=16436","title":{"rendered":"Albert Edwards Hits Peak Pessimism: “S&P Will Fall 75%”, Global Recession Looms"},"content":{"rendered":"

Albert Edwards Hits Peak Pessimism: “S&P Will Fall 75%”, Global Recession Looms<\/a><\/h3>\n
2016 has thus far been a year characterized by remarkable bouts of harrowing volatility as the ongoing devaluation of the yuan, plunging crude prices, and geopolitical uncertainty wreak havoc on fragile, inflated markets.<\/div>\n
\n
\n

With asset prices still sitting near nosebleed levels after seven years of bubble blowing by a global cabal of overzealous central planners with delusions of Keynesian grandeur, some fear a dramatic unwind is in the cards and that\u00a0this<\/em>\u00a0one will be the big one, so to speak.<\/p>\n

December\u2019s Fed liftoff may well go down as the most ill-timed rate hike in history Marc Faber recently opined, underscoring the fact that the Fed probably missed its window and is now set to embark on a tightening cycle just as the US slips back into recession amid a wave of imported deflation and the reverberations from an EM crisis precipitated by the soaring dollar.<\/p>\n

One person who is particularly bearish is the incomparable Albert Edwards. SocGen\u2019s \u201cuber bear\u201d (or, more appropriately, \u201crealist\u201d) is out with a particularly alarming assessment of the situation facing markets in the new year.<\/p>\n

\u201cInvestors are coming to terms with what a Chinese renminbi devaluation means for Western markets,\u201d Edwards begins, in a note dated Wednesday. \u201cIt means global deflation and recession,\u201d he adds, matter-of-factly.<\/p>\n

First, Edwards bemoans the lunacy of going \u201cfull-Krugman\u201d (which regular readers know you never,\u00a0ever<\/em>\u00a0do):<\/p>\n

\n

I have always said that if inflating asset prices via loose monetary policy were the route to economic prosperity, Argentina would be the richest country in the world by now ?and it is not!\u00a0The Fed?s pursuit of negligently loose monetary policies since 2009 is a misguided attempt to boost economic growth via asset price inflation and we will now reap the whirlwind (the ECB, Bank of Japan and the Bank of England are all just as bad).<\/strong><\/em><\/p>\n<\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Albert Edwards Hits Peak Pessimism: “S&P Will Fall 75%”, Global Recession Looms 2016 has thus far been a year characterized by remarkable bouts of harrowing volatility as the ongoing devaluation of the yuan, plunging crude prices, and geopolitical uncertainty wreak havoc on fragile, inflated markets. With asset prices still sitting near nosebleed levels after seven […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5150,56,57,1750,1269,124,130,4333,452,6040,2307,534,7523,1264,675,2773,1031,4318],"class_list":["post-16436","post","type-post","status-publish","format-standard","hentry","category-economics","tag-albert-edwards","tag-bank-of-england","tag-bank-of-japan","tag-bear-market","tag-bis","tag-central-banks","tag-china","tag-crude","tag-japan","tag-main-street","tag-marc-faber","tag-monetary-policy","tag-nominal-gdp","tag-recession","tag-renminbi","tag-volatility","tag-yuan","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16436","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16436"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16436\/revisions"}],"predecessor-version":[{"id":16437,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16436\/revisions\/16437"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16436"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16436"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16436"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}