Crispin Odey issues warning about possible stock market plunge

Hedge fund manager Crispin Odey has issued a stark warning about a possible stock market plunge that will be "remembered in a hundred years."

Read more from The Guardian:

One of the UK’s most successful hedge-fund managers has issued a stark warning that the global economy faces a downturn that will be “remembered in a hundred years” and leave stock markets facing devastation.

Crispin Odey, best known for anticipating that banks would go bust in 2008, made his gloomy predictions in a missive to clients of his Odey Asset Management business in which he warns that the European Central Bank’s €1.1tn (£730bn) bond-buying programme announced last week will not stave off a slump.

He is not only pessimistic about the firepower of the central bank to inject life in to moribund eurozone markets but also about China, where recent data showed growth had slowed to 7.4%.

Acknowledging he is gloomier than rivals, Odey said: “This down cycle is likely to be remembered in a hundred years … Sadly this down cycle will cause a great deal of damage, precisely because it will happen despite the efforts of central banks to thwart it.”