Guardian: Beware of the 2016 economic crisis
Adam Pike, News Editor
20 Jan 2016, 4:52 p.m.
Top city analyst, Albert Edwards, is warning the global economy could collapse as deflationary forces take hold. This latest warning comes only days after RBS and UBS warned their clients to be fearful of stock market.
Edwards a strategist at Societe Generale, said western economies will soon be hit by a deflationary wave from emerging economies and central banks are ignoring the risks. According to Edwards the crash will be very ugly and every bit as bad as the 2008 crisis.
Edwards, London’s most vocal bear believes the U.S. economy is in worse shape than the Fed wants to admit and believes the U.S. stock market is way overvalued. In a damming assessment Edwards believes next recession could bring the EU to it knees and cause the eventual break up on the 28 member state.
The analyst was quick to point out that after years of being the only bear in the city, other institutions such as UBS and RBS are becoming more and more fearful.