The US Fed is too late to avoid another meltdown, SocGen´s Edwards says

The Federal Reserve, under Janet Yellen, waited too long to raise rates if she wanted to avoid another meltdown in the global financial system, Societe Generale strategist Albert Edwards said.

In a research report entitled Fed negligence ... again!, Edwards said the current Fed chief was cut from the same 'over-confident' cloth as her two immediante predecessors, Alan Greenspan and then Ben Bernanke.

"Similarly I think the Yellen Fed will go down in infamy as deliberately stoking up yet another massive financial bubble," the strategist wrote to clients.

"But unlike the start of the last tightening cycle in 2004, this time the corporate bond market is already severely stressed and it may take just a tiny pin-prick to burst open the putrid excess."

He emphasised that credit growth had already reached peak historical rates.

"In short Janet, its too late!"