Some Bad News

January 3, 2011
Albert Edwards, SocGen bear, takes a bite out of China

The Guardian offers us paragraph after paragraph of doom and gloom today. Here's a teaser.

Edwards is thus sticking to two eye-catching predictions. Stock markets will revisit their March 2009 lows (3512 for the FTSE 100). And, despite the hints in recent months of a return of inflation, gilt yields will fall below 2% (from 3.5% today) as deflationary forces reassert themselves. Oh, and for good measure, prepare for the hard landing in China and the crash in commodity prices.

For what it is worth, I still lean deflationary.