Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Albert Edwards slams Haldane’s ‘grotesque’ property claim

2 Comments
Albert Edwards slams Haldane’s ‘grotesque’ property claim

Albert Edwards has described Bank of England (BoE) chief economist Andy Haldane’s claim that property is better than pensions as ‘grotesque’.

Societe Generale's famous uber bear is still struggling to comprehend how Haldane is still in his job after his prognosis made last August.

Back then Haldane told the Sunday Times that property will outperform pensions as long as there is a strain on housing stock.

‘It ought to be pension but it’s almost certainly property,’ Haldane said at the time.

‘As long as we continue not to build anything like as many houses in this country as we need to…we will see what we’ve had for the better part of a generation, which is house prices relentlessly heading north.’

Edwards, who described the comments as ‘totally stupid’ at the time, used his global strategy presentation on Tuesday as another opportunity to launch a broadside at Haldane.  

‘Andy Haldane, the chief economist of the Bank of England, what an incredible thing he said when he was quoted in the Sunday Times saying ‘property is a better bet than a pension,’ due to continually rising house prices,’ Edwards said, according to Business Insider.  

‘That is a grotesque thing for a policy-maker to say. Quite frankly I’m surprised he’s still in his job after he said that. He shouldn’t be in his job.’

Edwards continued: ‘[That] reminds me of [former Federal Reserve Chairman] Ben Bernanke in 2006 when he was asked about the house price bubble, he said “Hey, I don’t even accept your premise there is a bubble.” That assertion came around a year before the US sub-prime mortgage market collapsed.' 

Haldane is building a reputation for colourful views and is even prepared to have a dig at himself.

Last week he compared the BoE economic warnings on the wake of the Brexit to the forecasting skills of legendary weatherman Michael Fish.

'It's true, again, fair cop. We had foreseen a sharper slowdown in the economy than has happened, in common with almost every other mainstream macro-forecaster,’ Haldane confessed.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play On the Road Challenge: Clay pigeon shooting with Thesis' Lansdowne

On the Road Challenge: Clay pigeon shooting with Thesis' Lansdowne

Eleanor Mahmoud goes clay shooting at the National Clay Shooting Centre with Sam Lansdowne from Thesis Asset Management

Play AA-rated Flood on gov't bonds: 'the maths doesn't add up'

AA-rated Flood on gov't bonds: 'the maths doesn't add up'

He also addresses why his Newton Multi-Asset Income fund has such a high cash weighting and why he sees renewables as such a good opportunity.

Play AAA-rated Ali: Identifying the peripheral European plays

AAA-rated Ali: Identifying the peripheral European plays

Citywire AAA-rated Tawhid Ali thinks that plenty of good stocks in the European periphery are being thrown out with the proverbial bath water.

Read More
Your Business: Cover Star Club

Profile: Brewin's Cardiff boss on the Welsh opportunity

Profile: Brewin's Cardiff boss on the Welsh opportunity

Prior to becoming head of Brewin Dolphin Cardiff, Welshman David Myrddin-Evans had only previously visited the city to watch the rugby.

Wealth Manager on Twitter