Bill Fleckenstein, President of Fleckenstein Capital, told King World News that even back in 2009, the Fed was talking about ‘exit strategies.’ Yet in 2013, the Fed can’t even reduce the stimulus.

Financial Post | Business

The Fed surprised markets by announcing that it would continue its monthly $85 billion asset purchase program.

This sent stocks and gold surging, while interest rates collapsed and the dollar weakened.

Bill Fleckenstein, President of Fleckenstein Capital, told King World News that even back in 2009, the Fed was talking about ‘exit strategies.’ Yet in 2013, the Fed can’t even reduce the stimulus.

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He argues that the Fed is “totally trapped”:

“Since April, the 10-Year has gone from about 1.6%, to as high as 3% recently.  Now we have to see when this rally in bonds stops.  The bond market will then roll over and then the Fed won’t have the tapering as an excuse.  It means the bond market has ceased to price in the scenario that the Fed wants, and the bond market is not responding to the Fed’s moves in the short-run.  In the…

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