With the Evergrande crisis unfolding, threatening global economic recovery and global markets, it is a wonder if Fed Powell has the guts to announce a taper this week. My feeling is that he won't as he would want to buy more time, but yet prep the market for a possibility towards the end of the year. Besides, he has not been re-appointed yet and should any taper decision exacerbate fragile market sentiments and cause a market crash, then that would be the end of him as Fed boss.
So market bears, this may not be a walk in the park. A sharp market rebound is a possibility if the market has now imputed a worse than expected outcome(s). And do not expect a Lehman Bros style collapse for Evergrande, this is a known known, the pain from the fallout is likely to be more over time...this is why we should not be inventing derivatives to allow people to short to kingdom come and drive the whole house of cards down...that would have happened in America.
