SocGen's Edwards: Clients cannot see an immediate trigger for the financial Armageddon heading our way

Dovish tightening cycle

Société Générale's bearish strategist Albert Edwards has warned the current market situation is "even worse" than the lead-up to the Global Financial Crisis (GFC) as policymakers are "so scared" of financial bubbles bursting, they are putting the needs of Wall Street before the needs of the economy.

By central banks flagging when they intend to hike rates, Edwards said the predictability compresses risk premia, which in turn encourages higher leveraging and risk-taking. This meant the current tightening...