Albert Edwards: A bigger crash is coming

Societe Generale's chief global strategist, Albert Edwards, is known for his gloomy outlook on the markets. The self-proclaimed "uber-bear" warned in 1996 that Western economies and equities were in danger of following Japan into a deflationary bust. He now thinks we may be in line for an even bigger crash.

Central banks just don't learn, says Edwards. China is the latest example of "loose money" inflating a stock bubble and ending in tears, but it is merely a small preview of what's to come.

"I have not one scintilla of doubt" that central banks, having blown up the bubble again, have laid the foundations of "an even bigger version of the 2008 Great Financial Crisis/Recession". Only this time, the authorities won't be able to cut interest rates or up government spending to combat the fallout. As a result, quantitative easing will be stepped up significantly. You'll "hear the roar of the printing presses from Mars".

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But there's one shaft of light in the gloom: gold. Gold has taken a hit lately and the recent price slump could continue as low as $900 per ounce, but bulls won't be fazed. For them, the dip is a welcome prelude to "lift-off".