Fasten Your Seatbelts: June 2013 Could Be A Major Turning Point To The Global Financial Markets
June 22nd, 2013
Rick Santelli Rages: “What Is Bernanke So Afraid Of?”
BOB JANJUAH: Ben Bernanke Is Scared
He will be forced to taper.
Nomura’s bear Bob Janjuah believes the “why” is fear.
From his note last week:
So for me, ‘tapering’ is going to happen. It will be gentle, it will be well telegraphed, and the key will be to avoid a major shock to the real economy. But the Fed is NOT going to taper because the economy is too strong or because we have sustained core (wage) inflation, or because we have full employment – none of these conditions will be seen for some years to come. Rather, I feel that the Fed is going to taper because it is getting very fearful that it is creating a number of significant and dangerous leverage driven speculative bubbles that could threaten the financial stability of the US. In central bank speak, the Fed has likely come to the point where it feels the costs now outweigh the benefits of more policy.
Price of Gold Plunged, Panic Deepens on World Financial Markets