by Mac Slavo, SHTFPlan:
With corporate earnings for the first quarter of 2016 set to be the worst since the Great Recession, Societe Generale economist Albert Edwards is warning that the United States is about to be hit with a tidal wave.
A tidal wave is coming to the US economy, according to Albert Edwards, and when it crashes it’s going to throw the economy into recession.
…the profit recession facing American corporations is going to lead to a collapse in corporate credit.
“Despite risk assets enjoying a few weeks in the sun our fail-safe recession indicator has stopped flashing amber and turned to red”
Whole economy profits never normally fall this deeply without a recession unfolding. And with the US corporate sector up to its eyes in debt, the one asset class to be avoided — even more so than the ridiculously overvalued equity market — is US corporate debt. The economy will surely be swept away by a tidal wave of corporate default.
Giving us further confirmation that something is amiss we need look no further than the brain trust known as our Federal Reserve. Earlier this week current Fed Chair Janet Yellen joined her predecessors Ben Bernanke, Alan Greenspan and Paul Volcker, all of whom argued that the U.S. economy is not only not in a bubble, but is on solid footing and a good trajectory.
Via Zero Hedge:
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