The latest offering from the perma-bear community, delivered by Albert Edwards at SocGen, is, well, bearish. US corporate profits are suffering a "gut wrenching slump," Mr Edwards warns, adding "whole economy profits never normally fall this deeply without a recession unfolding. The economy will surely be swept away by a tidal wave of corporate default."
Mr Edwards says the recent rebound in the S&P 500 is misleading. "Ignore this noise", he insists, "Recent whole economy profits data show that while the Fed plays its games, the economic cycle is withering and writhing from within."