from Zero Hedge:
With the FOMC set to announce the decision to taper or not taper, forward guide or not forward guide, cut thresholds or not cut thresholds, we thought a reminder of the seven reasons to delay the taper (following what BAML’s Ethan Harris calls the recent “punch in the stomach for the economic recovery story”) and the four crucial reasons why the Fed can’t (or won’t) delay the Taper.
Even if housing is just leveling off, this a punch in the stomach for the economic recovery story. Housing is supposed to be at the core of the strong growth in the next couple years. And the timing of the weakness makes sense: it comes in the wake of a 100 bp rise in mortgage rates. Up to now, economists could shrug off any near-term housing weakness and stick to the strong momentum story. That confidence must be shaken.
Please follow SGT Report on Twitter & help share the message.