albert edwards put out an extremely bearish note.p going well below a thousand potentially. one of the reasons why is he talks about how this is indirectly a result with the fed's quantitative easing. he said it's certainly inflated asset prices and now it's coming home to roost. actually, i'll hold that thought for a second. let's get to seema mody. >> here's what we understand so far. the shares are halted. the company cutting their guidance. the company also announcing a reduction in its work force by around 7%. we're just digging through the release, but we will get you more as we get the details. for now, back to you. >> all right, seema, thank you, guys. gopro is one of the few names in the groan today. do we have joshua? josh, do you have a little more context around what's going on here? >> well, kelly, just combing through the numbers here as seema is running through them, this is a stock that's been under tremendous pressure. with that release over the summer. a camera that was initially mismanaged and mispriced. you saw go

where does albert edwards fit in to the general view of where markets are going? orn and albert edwards last year were warning about global credit risk from china albert has been right on in terms of the outflows from china the counterparty risk between china and other emerging markets. they have been way out in front of this. i have to tip my hat to them, they've done a good job for our bank. >> as head of u.s. strategy, your title, do you think he's right when he says stocks could lose three quarters of their value? is that a tail risk you're thinking about? >> i will not challenge albert edwards on this program, but i would say that china is going through something very strange. they're telling the world their gdp is between 6% and 7%, but at the same time trying to control ap c capital outflows. those two things don't match up. if they let the currency deprecate too fast that presents more counterparty risk, currency risk, and it sets up an ugly global economic scenario. >> back to the banks. as we get through the week, we'll get through goldman, fifth third an

this morning, albert edwards came out with a note, he used the words coming carnage.e said the s&p could fall 75% from the peak of 2100, that would leave it at 550. sounds crazy. on a day like this where we're seeing a significant clip. i believe he was giving the outlook for the year it. caught my eye and said we better bring up this. he said the s&p could fall 75%. we are below the 3 month low of 1901. we started falling through throwers right and left lori rothman an hour before "countdown to the closing bell" which began at 3:00 p.m. eastern. what are you hearing from traders at the nyse? >> the worst start to stock, scary systems underway here, but remember the scary times of the late summer, august, september? the low on the s&p back then was 1867, and just checked with our friend sergeant stephen guilfoyle. stock markets down 2, 3%. obviously, the usual suspects, china trade was a little better than expected but portends a concerning china gdp number about to be released next week where analysts expect the worst economic picture in china in a generation. and cr

stock gen, albert edwards, issued a extremely bearish forecast, excuse me. are you getting concerned it is maybe becoming consensus. >> at some point when things trade it is consensus. it will be. that is fine. it doesn't mean we'll get a bounce. the eem is down 30% from the high in april of last year. we'll get a bounce in that stuff. but the markets, u.s. and europe and japan will play catch-up to the down side. >> and you are waiting to put the shorts on. what are you waiting for? >> what happened in january, everybody has a fresh pin and puts all of the trades on and everybody gets washed out in february and that is the time to re-set the positions properly and then trend longer. so it is kind of waiting for a bounce. >> so i'll ask you a question that people have been asking me. what change -- what changes economically? is it china qe or fed coming back with qe that would change your mind on the bear thesis? what is the good news out there? >> the fed has a long way to go from a tightening to a neutral bus and doing something and maybe on the fiscal sid