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18 Jun 2013
Flash: The Fed 'tapering’ will happen - Nomura
FXstreet.com (Barcelona) - The Fed ‘tapering’ is going to happen, says Nomura Strategist Bob Janjuah.
According to Janjuah: "Gap between central banks and fundamentals is at dangerous levels, with positioning, sentiment, speculation, margin and leverage at levels unseen since 2006/2007"
Janjuah thinks that the main Fed's concern now is not allowing, or be perceived to allow, "the creation of any kind of excessive leverage driven speculative bubbles which, if they collapse, go on to threaten the financial stability of the US" Janjuah said.
So for Janjuah, ‘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."
Janjuah expands 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."
According to Janjuah: "Gap between central banks and fundamentals is at dangerous levels, with positioning, sentiment, speculation, margin and leverage at levels unseen since 2006/2007"
Janjuah thinks that the main Fed's concern now is not allowing, or be perceived to allow, "the creation of any kind of excessive leverage driven speculative bubbles which, if they collapse, go on to threaten the financial stability of the US" Janjuah said.
So for Janjuah, ‘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."
Janjuah expands 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."