"I keep reading that, despite central banks spewing money into our financial system, there isn't a bubble in asset prices," writes Edwards in his latest note to clients. "And in any case if one appeared central banks, having learnt the lessons of 2008, will head it off with macro-prudent policy measures. Are you kidding me? Exactly the same bozos who missed the last bubble deny there is one now."
Two bubbles he thinks are loud and clear are the housing markets in London and China.
On London:
London house prices just rose 10% - in one month. Everything I read tells me this is unsustainable - which is just as well as prices would more than triple in a year. But make no mistake, as a life-long Londoner I have never ever seen anything like the current frenzy. We are in the midst of the mother of all housing bubbles, and although the rest of the country has yet to follow, it inevitably will do so - it always does.
The London
On China:
Meanwhile in China it looks as if the authorities have also lost control of house price inflation - again! Not only is the breadth of the rises quite startling, but the acceleration since March in the first-tier cities prices (Beijing, Shanghai, Guangzhou and Shenzhen) to over 15% yoy has been spectacular if not a little disturbing (see chart below).
The rapid acceleration in Chinese house prices since March has occurred incredibly quickly in the wake of the government's July mini-stimulus. The FT describes the September data as "staggering". Our own Wei Yao described it as "hopelessly strong".
Societe Generale
"Here we go again... and once again no-one is listening," he writes.