Right now the markets are going to continue to decline as long as the fed stays on this taper timeline. And I think the Fed is going to be connaissance of that. If you remember, they are basing the taper on the recovery which is the result of the wealth effect of a rising stock market and a rising real estate market. That allows us to lever up and borrow more money to buy more stuff that we can`t afford. But as these bubbles deflate, because the Fed is threatening to remove the props, now all of a sudden the recovery disappears, we are heading right back into recession and the only way to stop the markets from falling and reverse the illusion of a recovery is to do more QE and that is what the Fed is going to do, unfortunately.
Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.
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