SocGen's Edwards: Carney has taken BoE monetary policy to 'new level of schizophrenia'

Warning of consumer credit bubble

Société Générale's bearish analyst Albert Edwards has warned there has been little change from the "incompetence" shown by the Federal Reserve and the Bank of England ten years ago, when they allowed the global credit bubble to balloon out of hand.

Permabear Edwards said there was compelling evidence of a consumer credit bubble in the US and UK, but expressed concernes about the "bizarre" reaction of the Bank of England. Though BoE Governor Mark Carney has warned "banks are forgetting the lessons of the past" and increased bank capital requirements on consumer loans, the central bank has also just increased its programme of lending to banks at preferential rates to increase bank lending in such areas as consumer credit. Edwards said: "I have heard stories of credit card loan search engines spewing out money on four-year, 0% teas...