That is exactly what Albert Edwards strategist at the bank Société Générale would have us believe. Alongside RBS, he is warning of a new crash, saying oil price plunge and deflation from emerging markets will overwhelm central banks, tip the markets and collapse the Eurozone.
His comment came just as analysts at Royal Bank of Scotland urged investors to sell everything ahead of an imminent stock market crash.
He said the global developments would likely push the US back into recession and was quoted saying: “The financial crisis will reawaken. It will be every bit as bad as in 2008-09 and it will turn very ugly indeed.”
Edwards also attacked central bankers suggesting they had failed to learn lessons from the previous crisis saying that deflation is now upon us and they still can’t see it.