SocGen's Edwards: BoE is the midwife of any impending credit bust

Credit bubble primed to burst with recessionary consequences

Société Générale's bearish strategist Albert Edwards has said the Bank of England and the Federal Reserve should "hang their heads in shame" for overseeing another "impending disaster".

Permabear Edwards, who has been a long-term critic of central banks' actions, pointed to the US and UK's household savings ratios (SR), which had fallen to "shockingly low" levels last seen in January 2008. In particular, Edwards highlighted the BoE's failure to unwind its bond-buying programme and raise interest rates, which he believes the Bank should have done a long time ago. On 3 August, the BoE once again voted to hold interest rates at 0.25% with only two members, Ian McCafferty and Michael Saunders, voting for a rise to 0.5%. The Bank has not raised rates since July 2007. T...