Albert Edwards Finally Blows Up: "I'm Not Really Sure How Much More Of This I Can Take"

Tyler Durden's picture

Earlier this week we described the personal come to non-GAAP Jesus moment of trading commentator Richard Breslow, who confessed in no uncertain terms that he has had it with endless central banking intervention: "a portfolio built to only withstand stress thanks to central bank intervention is one destined to blow-up spectacularly. The embedded flaw in this new logic is that central banks give investors perfect foresight. And nothing can go wrong... You don’t need to be a Taleb or Mandelbrot to calculate that we have been having once in a hundred year events on a regular basis for the last thirty years."

Today it is another famous skeptic, SocGen's Albert Edwards who has had enough and says he feels "utterly depressed" because  he has not "one scintilla of doubt that these central bankers will destroy the enfeebled world economy with their clumsy interventions and that political chaos will be the ugly result. The only people who will benefit are not investors, but anarchists who will embrace with delight the resulting chaos these policies will bring!"

As he openly warns his readers :

"I have long recognised my own contrariness (or is it bloody-mindedness) and hopefully put it to good use in my chosen profession. If you want the consensus bull-market cheerleading nonsense, readers know it is amply available elsewhere."

With that warning in place, here is why the man who popularized the deflationary "Ice Age" blows up.

I am neither monetarist nor Keynesian. I see merit and demerit in both sides of a very fractious argument. But what I do know is when in the last few weeks I have heard that Janet Yellen sees no bubble in the US, when Ben Bernanke hones and restates his helicopter money speech, and when Mario Draghi says that the ECB's policy of printing money and negative interest rates was working, I feel utterly depressed (I could also quote similar nonsense from Japan, the UK and China). I have not one scintilla of doubt that these central bankers will destroy the enfeebled world economy with their clumsy interventions and that political chaos will be the ugly result. The only people who will benefit are not investors, but anarchists who will embrace with delight the resulting chaos these policies will bring!

We said in 2010 when the Fed launched QE2 that the ultimate outcome would be civil (or more than civil) war, so we thoroughly agree with Edwards "depression" because sadly he is right, but since stocks keep rising, few others seem to care.

Edwards' lament continues:

I?m not really sure how much more of this I can take. So here we are 5, 6 or is it now 7 years into this economic recovery and it still remains pathetically weak. And so it should in the wake of one of the biggest private sector credit bubbles in history. The de-leveraging hangover was always going to be massive and so it is. Quick-fix monetary QE nonsense has made virtually no difference to the economic recoveries other than to inflate asset prices, make the rich richer, inequality worse and make Joe and Joanna Sixpack want to scream in rage. They are doing so by rejecting the establishment political parties and candidates at almost every electoral turn and seeking out more extreme alternatives at both ends of the political spectrum. And who can blame them apart from the chattering classes?


I have just returned from Germany on a marketing trip. I absolutely agreed with their Finance Minister Schäuble when he blamed ECB loose money policies for contributing to the rise in the extremist right Alternative for Germany party. Schäuble, “said to Mario Draghi…be very proud: you can attribute 50% of the results of a party that seems to be new and successful in Germany to the design of this [monetary] policy,” And this is not just a German phenomena - it is a global one. The people are angry and they are lashing out. But central bankers have painted themselves into a corner with their overconfident rhetoric and monetary experiments. They have now committed us all to their road to perdition.

Finally for those convinced in central bank ultraomnipotence, Edwards has the following parting words:

As investors hung on the words of ECB chair Mario Draghi once again, I was reminded when reading the excellent monthly newsletter of Graham Summers at Phoenix Capital just how desperate Central Bankers will become once they are painted into a corner. Graham  writes "Whereas another Central Banker might state, “we are ready to act if warranted,” Mario Draghi says things like he'll "do whatever it takes… and believe me it will be enough.” Bear in mind that famous statement was made entirely off-the-cuff as former Treasury Secretary Timothy Geithner revealed.



[T]hings deteriorated again dramatically in the summer which ultimately led to him saying in August, these things I would never write, but he off-the-cuff - he was in London at a meeting with a bunch of hedge funds and bankers. He was troubled by how direct they were in Europe, because at that point all the hedge fund community thought that Europe was coming to an end. I remember him telling me [about] this afterwards, he was just, he was alarmed by that and decided to add to his remarks, and off-the-cuff basically made a bunch of statements like ‘we’ll do whatever it takes’. Ridiculous.



Interviewer: This was just impromptu.


Geithner: Totally impromptu?. I went to see Draghi and Draghi at that point, he had no plan. He had made this sort of naked statement of this stuff. But they stumbled into it. (Source: Financial Times)"


Here is former Secretary of the Treasury, Timothy Geithner, stating openly that Mario Draghi had "no plan" and was simply bluffing when he claimed, "we’ll do whatever it takes.” Lets not kid ourselves, these "guys" are literally making it up as they go along!

There is little more to add, suffice that all of the above explains the relentless thrust by the mainstream media to pain central bankers as nothing less than supermen, or in the case of Roger Lowenstein's famous op-ed, "Heroes."

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Looney's picture

Did Dennis Gartman break Zero Hedge?  ;-)


Paul John Smith's picture

Not, but ...

They might have hired the IT version of "Gartman" as their server admin ...

(and that would certainly explain this morning)

MillionDollarBonus_'s picture

It's pretty difficult to deny that we are in an economic recovery when our jobs numbers are so positive, interest rates are so low, and our stock market is poised to make new all time highs. In fact you could even say that the economic recovery is over and our economy is booming again. Look at Silicon Valley and the amazing tech startups we are producing - companies like Facebook, Twitter, Whatsapp and Uber. These companies are huge and are employing some of our brightest college grads to solve some of the world's most cutting edge technical problems. And then you have our service sector, which is second to none. Our healthcare industry is booming like never before, and is leading the world in medical innovations. You could argue that not only has our economy recovered, but we have begun a new industrial revolution.

Osmium's picture

"These companies are huge and are employing some of our brightest college grads to solve some of the world's most cutting edge technical problems."

Since when has getting a taxi been a cutting edge technical problem?

nope-1004's picture

There never was a recovery, there was manipulation of financials and lies about employment numbers.  People leaving the unemployment ranks because they can't find work and are no longer supported by .gov are ASSUMED to be employed again by the model, which is the lie being presented.  Most of those people have not found work.

Financial engineering by manipulating and setting the value of money at zero by a select few is not a recovery.


Winston Churchill's picture

They are are also homeless.

Just found out about three Obamavilles in Jensen Beach, adults and kids living in makeshift shanty towns

in parks. Not a word in the local papers, a charity worker showed me the pictures.

Looked like Mumbai, not the US.

1st Amendment's picture

I'm amazed this site runs at all these days given all the ads popping up

tc06rtw's picture

 …  Unfortunately,  Zero Hedge®  has to make a living, too!
 I’m  amazed at all the overeducated geniuses who believe that Mankind has attained some lofty grandeur where experts can be relied upon to provide wise and deliberate planning for some glorious future.
 Homo Sapiens  is exactly the same critter which high-tailed it out of Africa, killed off the mastodon, set up Stonehenge and the Pyramids, undertook the rising and falling of the Greek, Roman, Holy Roman, Ottoman, Nazi Empires, the Han Dynasty and World Communism  --  Where’d  ANYONE  get the idea that we’re not stupid anymore like people USED to be?
 Humans are exactly as rotten as all the other species on this planet are in “progressing”,  and just because we’re aware of “evolution” and “natural selection” doesn’t mean we have ANY ability to circumvent them.

HopefulCynical's picture

by Roger Lowenstein

'Nuff said.

Taylor's picture

Trump Got It Right Again. This Is the Undeniable Proof...

However the mainstream media isn't saying a word about it!

What are they really trying to cover up?

RaceToTheBottom's picture

We are giving out a lot of ribbons that say otherwise, bucko.

We are the best and brightest and everyone will fly to Vladivostok to get fresh tomatoes.....


Lore's picture

Humanity is hardly homogeneous. Take power away from psychopaths, and much could be avoided.

Political Ponerology:  A Science on the Nature of Evil Adjusted for Political Purposes

1st Amendment's picture

I'm amazed this site runs at all these days given all the ads popping up

glenlloyd's picture

You gotta use ad blocker of some sort...way better.

Every time I see a post by MDB I automatically go for the down arrow. He's what? editor for some accredited website? That's just more BS.

mtl4's picture

Draghi: "Anyone got a bazooka handy? This one has an orange cap on the end and won't shoot worth a damn for some reason."

DontGive's picture

MDB is just a lover of the Art of the Troll.

Enjoy every lick.

Taylor's picture
Taylor (not verified) DontGive Apr 22, 2016 11:50 AM

This is Donald Trump's most shocking statement yet,

However the mainstream media isn't saying a word about it!

What are they really trying to cover up?

Four chan's picture

Spam by Spammer.^   reported

Richard Head's picture

His stupid shit is so damn tired.

Troy Ounce's picture




The market can stay irrational longer than you can stay solvent - JM Keynes

Two Theives and a Liar's picture

I thought Jesse Livermore was credited with that quote...

Keynes hated

Augustus's picture

Most exciting article I've read in weeks.  Some prognistigator in fear for keeping job after being wrong for so long.  Might have to try to get a real job, maybe Uber will take Albert Edwards.

LawsofPhysics's picture


...and yet bankers/financiers still require access to free money (ZIRP/NIRP) despite the 7+ year "recovery"...

not your best work MDB.

Next to Arch Stanton's picture

Laws - I would agree.  It's been a while since I had a LOL reaction to one of MDB's posts.  As I read this one, was thinking how ridiculous the economic situation is - it's because of the massive manipulation of our markets that enable MDB to pen sarc posts which can (sometimes) entertain without being totally made up.  So sad.

VarenneRiver's picture

Your name is one of the best names I have seen on this board.
There are two types of bankers in this world my friend. Those with loaded Federal Reaerve emergency phone contacts and those ....wait no just those.

The best Sun's picture

This is not the old MDB.

I suspect it is a retarded failed clone/drone for shillary's super PAC

working a project called "correcting the record 2016".

Look it up.

This manipulation is just pathetic.


Kayman's picture


Now that is the MDB we have grown to love. The driest of wit. Irony wrapped in a touch of sarcasm.


sprodriguez's picture

MDB = pure comedic genius!

SixIsNinE's picture

 and MDB is finally rewarded - go to the link, even TRAV777 is posting over there !  

and our Monedas too !  looks like Accredited Times is going for the big times, MDB a high profile headline poster,    Bravo MDB ! Look out ZH, here come the Accredited Times   /sss

sonoftx's picture

Holy shit, I feel like I am around a bunch of pre-teen girls going to a Taylor Swift concert. If MDB is good then I will enjoy it, if not then so be it. All of you fucking fan boys that have to say something are actually pretty sickening. You should really be on other websites where your appreciation of MDB, fine wines, and the Wobblies can be appreciated.

Not My Real Name's picture

You've got to be kidding. He lost his game a long time ago. Or did I miss the wit, irony and sarcasm in your own comment?

_ConanTheLibertarian_'s picture

Facebook, Twitter, Whatsapp and Uber solve some of the world's most technical problems???


F em all but 6's picture

I see a bright future for you MDB. As a speech writer for Obama/Hillary. Keep up the good work. The Kool Aid has never tasted sooo sweet.

newworldorder's picture

Your "sarcasm tag" is missing. - AGAIN !

Cloud9.5's picture

Some of the brightest minds at MIT,  you know the guys that are good at math, well, they said we would be reaching the end of growth about right now.



oklaboy's picture

Do you work for Soros or Hillary? But I repeat myself.. 

lunaticfringe's picture


It's time to find something else to do. For a couple years your schtick was cute. All you have become now is an unwanted guest who refuses to leave.

lasvegaspersona's picture

We all know MDB is the 'happiness bot of ZeroHedge' but somedays I'd like to be able to think the way he does. It would be delusional but like a character from the Matrix....sometimes I just want to tatse the juicy steak.

dubaibubble's picture

first off, fork scummy Israel big time and all the other parasitic countries the USA gives money to


most people walking the earth today have their heads up their ass, the world economy is toast with this massive money printing fiasco


this MDB guy is a truly retarded brain-dead clown

Goldbugger's picture

RECOVERY??? So there were 24 Million on food stamps in 2008 and now 46 Million on food stamps. What RECOVERY????

DontWorry's picture

Right you are, time to normalize interest rates to 8%

t0mmyBerg's picture

ZH has become stridently anti-government, which I applaud.  The gmen (not to be confused with Gartman), or their supports in the private sector (the cronies who make their literally filthy lucre off of their relationships with those in power, as if this were China) however hire hackers who know how to wreak havoc.  I have been hacked by such before on home hosted web and email servers that had anti-government stuff on it, some aimed directly at certain senators and congressmen (who relaly has time to maintain a proper DMZ and act as a really good sysadmin on their linux boxes?0

My guess is ZH is getting some payback from the Ma(e)n