by Bill Bonner, Acting-Man.com:
Wednesday is the big day. Investors are on the edges of their seats, waiting to find out what the Fed will do. Taper? No taper? Or maybe it will taper on the tapering off?
Our guess is the Fed will not commit to a serious program of reducing its support to the bond, equity and housing markets. It’s too dangerous. Ben Bernanke – the man who didn’t see the housing crash coming – won’t want to see the stock market collapse just before he leaves office. He’ll want to go out on a high note…
…and that means guaranteeing more liquidity.
Investors don’t seem worried. On Monday, the Dow rose 130 points. Gold was up $10 an ounce. Most of the reports we read tell us the economy is improving. Unemployment is going down. Meanwhile, manufacturing levels are rising. Compared to Europe, the US is a powerhouse of growth and innovation, they say. Compared to emerging markets, it is a paragon of stability and confidence.
Please follow SGT Report on Twitter & help share the message.