ALBERT EDWARDS: The Party Is Over, The US Is Just One Recession Away From Japan-Style Doom

Here’s your happy thought of the day from SocGen strategist Albert Edwards:

Over the last 15 years most investors have refused to contemplate that events in the West are playing out in a similar fashion to Japan in the 1990s. But the latest inflation data out of both the US and eurozone should ram home the fact that we are now only one short recession away from Japanese-style outright deflation. Similarly, investors refuse to believe that equities can fall in an environment of rampant QE. They are wrong.

Basically, we’re so close to deflation, that all it will take is another downturn, and we’ll be toast.

Screen Shot 2013 05 02 at 8.14.54 AM

So is another recession on deck?

Edwards says yes, and he says that “Dr. Copper” is declaring the party’s over.

Screen Shot 2013 05 02 at 8.17.50 AM

So yes, deflation, Japan, falling stocks, and recession.

This is why people love Albert Edwards.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.