Biggest bubble ever set for extreme hard landing - Edwards

Société Générale strategist Albert Edwards has warned investors who own Australian government debt they face the 'mother of all hard landings' if China's economy slows down as they expect.

Edwards, well known as a serial pessimist but nonetheless widely respected, said Australia's consistent economic growth over the last two decades had left bondholders with an 'excessive' appetite for the country's debt. He warned these investors are now facing a sharp fall from grace if Chinese growth derails. "The absence of any recession since 1991 has led Australians to have an excessive appetite for debt in the belief the future will reflect the past," he said. "But for us, suppressed volatility is merely storing up an even bigger crash further down the road." He said the Au...