Why is the Fed tapering? - Paul Craig Roberts

``One possible explanation for the tapering is that the Fed has created enough new dollars with which to purchase the worst part of the banks' balance sheet problems and transfer them to the Fed's balance sheet, while in other ways enhancing the banks' profits. With the job done, the Fed can slowly back off. The problem with this explanation is that the liquidity that the Fed has created found its way into the stock and bond markets and into emerging economies. Curtailing the flow of liquidity crashes the markets, bringing on a new financial crisis. ''