zerohedge.com / by Tyler Durden / Oct 9, 2016 11:55 AM
Societe Generale’s Albert Edwards is more worried than ever… and more hopeful than ever. His weekly note has a smattering of Good (hope for a Kevin Warsh Fed), Bad (the ignorance of a Larry Summers debtfest), and Ugly (corporate leverage has never, ever, been higher)…
Much to my own regret I had never familiarised myself with the views of Governor Warsh, who was at the Fed from 2006-11, and played a key role in navigating the Fed through the crisis. He got a rousing reception from the BCA audience as he talked a lot of sense – in particular on how the Yellen Fed has lost its way and current policy is deeply flawed.
He explained that the Fed has been “captured” by a groupthink of academics led by the “Secular Stagnation” ideas of his friend, Larry Summers. Rather than admitting they are wrong, this group, who failed to predict the current economic malaise, have constructed this theory to explain why ever more stimulus is required.