So. No more exit strategy.

Ben doesn't even dare to talk about exit strategy (i.e. selling bonds) now, after all the rhetoric in recent years. Over the years, people were arguing with me that he has an exit strategy. But if one really does his homework and look at the actual numbers, one will realise that it's not tough to call his bluff. 

A mere mention of tapering (i.e. stop buying so much bonds) has already made bond holders so nervous. I started shorting bonds in March, and so far it has been profitable. Didn't expect bonds to fall so early. I was thinking it will fall towards the end of the year, and wanted to stick a foot in. Fortunately, I entered the trade early.

It will be interesting to see what he says in the next FOMC at the end of July. I will wager that the rate of money printing (sometimes euphemistically called Quantitative Easing) will be increased in the future. They will only reduce the rate of money printing if they dare to allow the government to default, or if they dare to allow the too-big-to-fails go bankrupt. 

Over the years, I've compiled soooo many news and opinion articles by economic commentators, who have been cheering for economic recovery and cheering on the Fed. In time to come, I will post the links to those articles (hopefully the links are still working). I do this not for the purpose of naming and shaming the authors - not at all - but to show how much irrational exuberance there can be in the market. It is hard to be aware that one is in a bubble. Is this complacency? Over-confidence? In my opinion, not so. It's more about wrong economic theories. I hope that as we see more and more financial turmoil in the world, the world will increasingly be more aware of some basic Austrian Economics, and make some effort to understand it. Only then will things start to make so much more sense.