Market Extra: Uber-bear Albert Edwards warns the Fed is about to sow ‘seeds of destruction’

Ever warm and fuzzy, Société Générale’s famed uber-bear Albert Edwards on Thursday warned that the Federal Reserve will sow the “seeds of destruction” in the bond market if it moves to hike interest rates next week as widely expected.

“Accelerated Fed rate hikes will cause tremors in the Treasury bond markets, forcing rates up, most especially in the two year — just like 1994,” said Edwards in a report.

1994 marked a historic bond market rout after a rate hike by the Fed that February sent long-term bonds into a tailspin and ultimately led to the bankruptcy of affluent Orange County, Calif.

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