When The Debt Bubble Bursts, Central Bank Independence Will Disappear: Albert Edwards

As the up-again, down-again stock market exhibits some of its highest rolling monthly standard deviations in recent history – sharply contrasting the almost absurdly low volatility that was manufactured in 2017 –Societe Generale's permabear Albert Edwards shakes his head. Edwards, in characteristic fashion, seems to delight in discussing risk management topics that are avoided among the polite company in the long-only Wall Street set – and his Thursday report is no exception. There is an illusion that has been created, an asset bubble that is about to pop. And at the end of this road might come the end of US Federal Reserve independence, he says.

When the US stock market recorded...