I’ve given it a little more thought, and have put a few more pieces of the puzzle together over the past 24 hours.
I am now 100% certain that the Fed will yank the taper here very, very quickly and implement additional measures to “increase QE”.
Seeing that Japan’s GDP numbers have disappointed ( as well considering the ticking time bomb Fukushima in the backyard ) I am also 100% positive that the Nikkei will continue to fall, and that Abe will have no other choice but to “push print” – much sooner than later ( I don’t think as soon as tonight/tomorrows monetary policy meeting) – likely late March.
Another huge contributing factor has it that China looks less and less likely to implement the “proposed reforms” discussed at the 3rd Plenum Meeting some months ago so the “looming debt/credit crisis in China” may just as well continue on. A further “kicking of the can” if you will.
The EU Zone is a complete and total disaster as it has been, and as it will continue to be.
So…..all things considered, I find it highly unlikely that “ripping the band-aid” really stands a chance here, and imagine you can “once again” thank the good ol U.S Federal Reserve for screwing this up so badly – that at this point…there really is no choice. The rest of the planet has now become so dependent on the constant flow of “funny money” that markets don’t even appear to be concerned.
The data out of the U.S is terrible, housing will immediately collapse, blah blah blah….
The printing “must” continue. To bad it won’t work regardless.
Bond yields are gonna shrink back down. USD is going to make its final trip “to the basement”, stocks are gonna take one more shot to the moon before the entire falls into the ocean.
More as the week gets rolling…….