Wednesday, October 23, 2013

Société Générale's Albert Edwards Warns that Central Banks are Ignoring Housing Bubbles amid Market Euphoria - "Just like in 2008"

From City AM:
Many central bankers claim that they're making progress on the problems that caused the financial crisis - but Societe Generale analyst Albert Edwards doesn't believe them.

He says that "exactly the same bozos who missed the last bubble deny there is one now." In November 2008 Queen Elizabeth II asked why "no-one saw it coming". Edwards says they did - "but were ignored amid the euphoria - exactly the same way they are being ignored now".

He reflects back to five years ago when "we were standing in the ruins of the worst slump in living memory." He says we are now back to that point. Now "signs of bubbles abound, the most visible one being house prices". Edwards thinks we "have truly slipped into another space and time dimension" where he sees headlines concerned with a German property price boom. London house prices have just risen by 10 per cent in just one month....MORE