My Dear Extended Family,
QE is attacked as ineffective.
It was for Main Street, but not for Wall Street.
It was for Main Street, but not for the bond markets of the Western world.
It was for Main Street, but not for the mountain of eternally growing OTC derivatives.
QE is a trap that once embarked upon cannot be stopped or even tapered. We are approaching the point of no return.
To taper QE will open the cracks that have begun to show in the bull bond market of generations.
To taper QE will turn business psychology as negative as indicators are now pointing.
To taper QE will end the bull market in equities.
The try and restart QE will be totally futile in terms of markets. The point of no return is the point of losing control of markets, from currency to equities. The point of no return could easily be any day now.
The biggest mistake of the moment is that to taper is a meaningless event.