Tapering - the event as it occurred.

I was always of the view that Bernanke would wait a wee bit longer to begin the so-called "tapering" exercise. So the postponement of the aforementioned event didn't come as a surprise to me, but infact my forecast/prediction worked well this time around.

Its the fragility of the US economy, which is indeed on steadier ground today, than earlier, but we all are aware that the sentimental swings these times are large and whimsical. Hence Bernanke wants to wait it out, watch some more stable economic information, before beginning to taper.

The Rickshaw insight!

With the fossil fuels unaffordable for the masses, I am one of the few who travel frequently by a rickshaw in Mumbai.

One of the days, I saw a unique psychological nuance.....or in other words...Human psychology at play.

On one of the Link Roads, my rickshaw was at the speed of about 40 - 50 km/h. There was a group of human beings waiting to cross the street. They waited and waited....until one of them gauged the speed of the rickshaw and jumped ahead to cross the street and was successful in his feat. What a revealing moment for the other group members, the "herd" jumped in and ran ahead to cross the street. Bringing then, the rickshaw to a halt.

Firstly, the first Mr. X took a long while to gauge the speed and then the "HERD" followed. The rational expectation would have been or move would have been to run across the street when rickshaw was far away. Infact all of them started running when the rickshaw approached close to them.

The HERD on the STREET phenomenon!!

Need we say more !!?!!

http://www.ibtimes.com/articles/348880/20120605/qe3-likely-at-next-fed-meeting-says-goldman-sachs.htm

Need we mention anything else, on Jan 25th, we had a conviction of QE3.

Do refer to our post on the mentioned date.

Enjoy.

THE PUISSANT