One of the most well-regarded analysts at Societe Generale says that it is time for the US to gird for a depression. The notion that the economy might recover is useless.
According to Reuters, Albert Edwards believes that While economic data in developed economies increasingly reflects depression rather than a deep recession, the real surprise in 2009 may lie elsewhere."
That "elsewhere" would be China. "It is becoming clear that the Chinese economy is imploding and this raises the possibility of regime change. To prevent this, the authorities would likely devalue the yuan. A subsequent trade war could see a re-run of the Great Depression."
Edwards also states that that there could be a stock 'rout.' Two weeks ago on The Big Finale, I predicted that this could happen- we most likely will experience a significant stock market correction in the first half of 2009 as panic sets in.
