Albert Edwards: Central banks to blame for impending disaster

The Société Générale global strategist said the recent sharp decline in household saving ratios (SR) in the UK and the US was last seen in 2007 just before the global financial crisis.

This week, the US saw a substantial downward revision to its SR, with 1.5% lopped off the estimates taking the ratio to 3.8%, a level which Edwards claimed was last seen prior to the recession.

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He said: ‘I'm genuinely getting tired of bashing the major central banks, but every day more evidence mounts that almost exactly the same debt excesses that caused the global financial crisis in 2008 are present today.

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Edwards previously said he believed the US corporate sector ‘borrowing binge' will take ‘centre stage in the next credit crisis', but now thinks the household sector will play a bigger part thanks to the latest SR data.