Albert Edwards: "It ends badly."

"Let me tell you how all this ends.
"It ends with investors accepting that they can pretend no longer and profits are sliding into recession.

"It ends as the equity market spirals into a deep bear market as company management reach the end of the road in the face of the recessionary conditions and 'kitchen sink' years of EPS manipulation.

"It ends as corporate bond spreads explode as years of excess debt accumulation lead to widespread corporate bankruptcies, making the recession much deeper.
"It ends with social unrest and double digit budget deficits (again).
"It ends with investors losing faith with the Fed as the resumption of QE proves ineffective in reviving the economy.
"It ends in deeply negative interest rates, currency and trade wars, helicopter money and ultimately inflation.
"In a nutshell, it ends badly."

--- Albert Edwards, Societe Generale