- Econophile11/12/2010 - 18:46
- williambanzai711/12/2010 - 14:16
- derailedcapitalism11/12/2010 - 14:13
QE2 Frontrunning Begins As Fed Gives Primary Dealers 7.229 Billion Reasons To Close Market Green
Brian Sack proves that all who thought a little technical glitch can stop the Fed from destroying America's middle class and the dollar, are idiots. Today's POMO closes as $7.2 billion of bonds due 2014-2016 are monetized, at a perfectly median 4.0x submitted to accepted ratio. Elsewhere, CNBC is now officially pimping QE2 as its last resort attempt to get greater fools in the stock market. And just like Michele Caruso-Cabrera, who obviously has absolutely no idea how POMO is run, we are eagerly awaiting the price and the yield on the buybacks. We anticipate to wait about 50 years for said data: about the time the Fed's records are declassified.
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Posted on: Friday, November 12, 2010 05:37 PM
Author: Tyler Durden
Subject: QE2 Frontrunning Begins As Fed Gives Primary Dealers 7.229 Billion Reasons To Close Market Green
Brian Sack proves that all who thought a little technical glitch can stop the Fed from destroying America's middle class and the dollar, are idiots. Today's POMO closes as $7.2 billion of bonds due 2014-2016 are monetized, at a perfectly median 4.0x submitted to accepted ratio. Elsewhere, CNBC is now officially pimping QE2 as its last resort attempt to get greater fools in the stock market. And just like Michele Caruso-Cabrera, who obviously has absolutely no idea how POMO is run, we are eagerly awaiting the price and the yield on the buybacks. We anticipate to wait about 50 years for said data: about the time the Fed's records are declassified. Full results:
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Posts
on Fri, 11/12/2010 - 11:37
#722250
Inject your venom!
http://www.youtube.com/watch?v=jckHydivJg8&feature=related
on Fri, 11/12/2010 - 11:38
#722253
ok, quick sideline to Mish...
Investor for 17 years, runs his on fund for 12 years, blogs for 3 years, disappears without warning... my suspicion... HACKED
All your bloggers are belong to us, make your time...
CKF
on Fri, 11/12/2010 - 11:55
#722352
That seems to be the most likely explanation! Amazing!
But do you think they hacked him, then deleted his blog? Is that what you think is likely to have occurred? If so, then he will probably be back within a few days?
He must be pissed as hell!
...or is all this even more sinister? I don't know!
on Fri, 11/12/2010 - 12:13
#722419
It would be amazing if the markets close down at least 1% even in the face of a 7bn POMO. Of course, like I said last week, the insiders are taking this 1 month window to liquidate every single share they own. It may be the start of a new trend.
on Fri, 11/12/2010 - 11:58
#722368
Mish's blog is working fine for me...
on Fri, 11/12/2010 - 12:09
#722413
Back up...
on Fri, 11/12/2010 - 11:39
#722254
Chart: SPX
Wheeeee!
http://99ercharts.blogspot.com/2010/11/spx_5198.html
on Fri, 11/12/2010 - 12:23
#722463
ditto... looks like a turning point today.
on Fri, 11/12/2010 - 12:39
#722538
OK,
This is interesting... They are hitting the bid big time and we are way down on the days lows... Either they are clearing out the weak longs and preparing to POMO up for the rrest of the session or there is something else (Europe?, China?) going on.
Going long at 93 quarter.
on Fri, 11/12/2010 - 11:39
#722257
Off topic, but anybody seen Mish? His blog is gone.
http://globaleconomicanalysis.blogspot.com/
on Fri, 11/12/2010 - 11:40
#722265
see my post above... just a suspicion
on Fri, 11/12/2010 - 11:41
#722269
I just called him. Hes in vegas ...
on Fri, 11/12/2010 - 12:03
#722384
Did he lose his blog at the poker table?
Wait - he's back!
on Fri, 11/12/2010 - 11:40
#722260
Elsewhere, CNBC is now officially pimping QE2 as its last resort attempt to get greater fools in the stock market.
Too funny! The Fast Money crew was baffled why the market wasn't down much more yesterday yet not one mentioned that the Fed is pumping. Are they really that stupid? They thought the market not crashing was a sign of strength in the markets but never mentioned the whole underlying reason - POMO. Yes, Virginia, they are pretty stupid.
on Fri, 11/12/2010 - 11:48
#722274
I looked but couldnt re-find your post on AAPL TBTF. I think AAPL is rolling.....very slow, but down since its peak. Need a decisive move down to panic everyone but it continues to be a down side watcher.
EDIT: Flash crash??? Stockcharts as well as my broker account shows a flash to $212!!!!
on Fri, 11/12/2010 - 11:50
#722325
It IS TBTF. It's only off about 3% from its recent all time high. It should be off way, way more IMO. But it can't. It's TBTF - if AAPL goes down, the entire market goes with it. Won't happen. Fed will support it until every human being on the planet has an iPod, iPhone, iPad and some version of a MacBook.
on Fri, 11/12/2010 - 11:54
#722346
And the apple tv for glee ... Lol.
on Fri, 11/12/2010 - 12:02
#722388
+100
on Fri, 11/12/2010 - 11:56
#722356
TBTF actually means TBTFITCSI...
Too Big To Fail If They Can Stop It... And they can't.
CBs are not bigger than the market, despite all their posturing to the contrary.
on Fri, 11/12/2010 - 12:18
#722443
...nice BrainSack!
on Fri, 11/12/2010 - 12:46
#722567
...I gotta be me, y'know. Or not.
on Fri, 11/12/2010 - 11:51
#722327
Its beginning to look a lot like Christmas.
on Fri, 11/12/2010 - 11:41
#722270
amazing that cnbc reports this as "news" with no comment; its normal.
today ben added more gas to the fire burning down the usa
on Fri, 11/12/2010 - 11:43
#722271
Um... nobody look now, but the yield on the 10y is up right through POMO.
Houston, we have a .... Houston? Are you there?
on Fri, 11/12/2010 - 11:42
#722272
And now we begin creeping upwards towards a green close. Take it away Robby robot.
on Fri, 11/12/2010 - 11:42
#722275
PDs might wait for lower prices. They are not fools
on Fri, 11/12/2010 - 15:39
#723226
It's 4 hours later. Are the geniuses still waiting?
on Fri, 11/12/2010 - 11:43
#722276
Its about fucking time. Ive been waiting for the OTB Chart all morning. Ill put $200 on Horse 912828KRO and $300 on 912828NZ9.
on Fri, 11/12/2010 - 11:43
#722278
Pretty neat how gold is almost back down to pre-QE2 level.
Way to go Bart! Congrats Gary!
on Fri, 11/12/2010 - 11:43
#722282
My BrAinSack is filling up with hot money and I'm about to jiz all over every ass-et!!!! Just look at my Avatar - look at it bitches!!!!
on Fri, 11/12/2010 - 11:48
#722307
.....either that or I will come into my shorts...again....
on Fri, 11/12/2010 - 11:43
#722283
arghhhhhhhhhhhhhhhhhh, let's call this shit what it is
A NATIONALIZED 401K PLAN, for if we didn't have it all mfund mgrs would be dumping stocks, most balanced funds have recovered most of the losses, all them retiree's see these numbers and they will dump em
why are the numbers bigger and longer, cause it takes more cash to keep pcln, nflx, appl, bidu all up up up
monday is dday, if oil is down big, the pigs will puke everywhere, everything, and pomo will just be a vehicle for the street too sell at good prices into options week
i see black swans everywhere, lol...................
on Fri, 11/12/2010 - 11:43
#722284
Do the advanced math captchas keep retail investors away?
on Fri, 11/12/2010 - 11:47
#722300
POMO Fail?
on Fri, 11/12/2010 - 11:48
#722306
Crap! What's happening to Gold? Anyone know?
on Fri, 11/12/2010 - 11:49
#722318
Turd you said ....
on Fri, 11/12/2010 - 11:51
#722335
Please refer all questions to JPM's help desk at the CFTC.
on Fri, 11/12/2010 - 11:54
#722345
Now that's funny.
on Fri, 11/12/2010 - 11:59
#722372
volatility
on Fri, 11/12/2010 - 12:02
#722387
G20 meeting. They need to make this look good.
on Fri, 11/12/2010 - 11:49
#722309
Could someone please explain to a POMO neophyte the significance and interpretation of the RATIO data. What should I/we be looking for?
on Fri, 11/12/2010 - 12:08
#722403
Tyler's highlighting that there's 4 times as many people offering to flip their treasuries to the Fed than the Fed is buying today.
The bid to cover on the auctions is usually between 2 and 3.
Meaning that nobody actually wants treasuries because they think we're going to pay them back, they just bought them to flip them back to the Fed at a profit.
Which kind of shoots CNBSs notion that there's any real demand for Treasuries right in the ass.
on Fri, 11/12/2010 - 12:14
#722426
Thank you for the clear explanation.
on Fri, 11/12/2010 - 12:45
#722563
Yes, thanks!
Perhaps we are seeing the opening salvo of a "buy the rumor, sell the fact" run for the exits. It's going to get interesting!
on Fri, 11/12/2010 - 12:35
#722520
Where it goes...
on Fri, 11/12/2010 - 12:58
#722600
sweet relief
on Fri, 11/12/2010 - 13:07
#722634
LOL banzai
As for today, it loks like POMO is an acronym for:
Pissed on my Oxfords
on Fri, 11/12/2010 - 11:49
#722316
Did they pay everyone in DIS stock? Look at that pig fucker fly today after yesterdays fiasco.
on Fri, 11/12/2010 - 11:53
#722330
We (the taxpayers<the Treasury<the Fed) over paid. GUARANTEED.
on Fri, 11/12/2010 - 11:51
#722333
My god, the market was down today, I simply couldn't figure it out...
on Fri, 11/12/2010 - 11:52
#722339
My great-grandkids just texted me about this from the future in their home in New Beijing City (formerly New York City)...."Great Granddad...more debt for us? Really? WTF are you guys thinking?"
on Fri, 11/12/2010 - 11:53
#722342
Fed Buys $7.23 Billion in Treasurys as Second Round of Quantitative Easing Ends (click here)
WOOT!! QE2 is OVER..
Have to love the Breaking News Headline at CNBC. Yes, QE2 was only $7.23B..
Nevermind the remaining $592.77B - $792.77B....
on Fri, 11/12/2010 - 11:58
#722370
They. Know. Nothing!!
/hypocrite
on Fri, 11/12/2010 - 11:57
#722358
Any PD below 1200 spx will be called market intervention. Aka Japan
on Fri, 11/12/2010 - 11:57
#722360
... and the effect shows where? Not in stocks. Not in commodities. WTF?
on Fri, 11/12/2010 - 11:57
#722361
POMO jumps the shark today. QE2 fails to restore wealth effect on day 1....
on Fri, 11/12/2010 - 11:59
#722369
1200 spoos is a nice round number. Let the buying begin ...
on Fri, 11/12/2010 - 12:00
#722374
Tweet @Ben Ben, this is Timmy, why the fuck isn't the stockmarket skyrocketing right now? You said this would work...
on Fri, 11/12/2010 - 12:00
#722375
Market isn't up because that POMO went toward the bonus pool
1st things first!!!
on Fri, 11/12/2010 - 12:01
#722379
priorities, bitchez!
on Fri, 11/12/2010 - 12:04
#722392
+1
on Fri, 11/12/2010 - 12:16
#722425
With the 2010 banker bonuses at $144B, today's $7B money creation only covers 5%.
on Fri, 11/12/2010 - 13:02
#722617
still 42 "shopping" days till christmas...
models and bottles y'all
on Fri, 11/12/2010 - 12:07
#722404
Tweet to Ben is "why isn't the BOND market soaring???" All stars "in alignment" right? All "risk assets" getting clobbered, right? "That includes treasuries, now BB." You need to ask yourself "just who precisely are you bailing out, Ben" by monetizing the debt? IT'S NOT THE TAXPAYER that's for sure.
on Fri, 11/12/2010 - 12:16
#722434
Taxpayer bailouts??? HAHAHAH
The elites plan to divide and conquer is alomost complete. It appears that the plan all along was to have the sheeple debate gays, god, and guns all the while TPTB were orchestraing the greatest coup never televised.
on Fri, 11/12/2010 - 12:15
#722427
Guys fuck the markets....let's get with the program...
http://www.youtube.com/watch?v=0bJK9K05Hgo&feature=player_embedded
on Fri, 11/12/2010 - 12:16
#722431
I am sooo glad I didn't try to "get in on" this POMO thing.
Wall Street's bread and butter has been running over the shorts for a year and a half.
Looks like they've decided to start shearing any longs they can flush out now.
on Fri, 11/12/2010 - 12:20
#722452
Hope you all can haz puts!
http://www.google.com/finance?client=ob&q=NYSE:GLD -3% !!
on Fri, 11/12/2010 - 12:23
#722456
I have a hard time believing that the POMO is going to float the markets for all that long. US markets have value on the order of tens of trillions of USD. POMO is only $600 billion over 8 months. It is Helicopter Ben pissing in the wind!
on Fri, 11/12/2010 - 14:17
#722929
its $600 bl multiplied by 20x leverage, which PD's do.
on Fri, 11/12/2010 - 12:23
#722464
Chart: SPX
Fuck POMO.
http://99ercharts.blogspot.com/2010/11/spx_5404.html
on Fri, 11/12/2010 - 12:24
#722468
The reason the market is still falling today is that it is drained of liquidity and margin calls are forcing liquidations. Although the POMO auction was today, the banks who tendered don't actually get the cash settled to them until Monday. This is why the schedue states both auction date and settlement date.
Only when they get the cash can they juice the market. No cash today. No juice today.
on Fri, 11/12/2010 - 12:41
#722549
Bankers can't haz credit? what? Cash only?
on Fri, 11/12/2010 - 13:11
#722644
Its like Peter Lugers now.
on Fri, 11/12/2010 - 12:48
#722572
and yeah - so what you are saying is, 'buy and hold' till Monday? have fun with that.
on Fri, 11/12/2010 - 12:25
#722470
Since QE2 isn't buying (many at least) cmbs, we won't see the massive flood of cash into this mkt. QE1 worked by allowing banks to sell their shitty mtg bonds (to you and I, btw) and buy treasuries. If they marked those mtg bonds mark-to-market or even close, the price difference was just gravy that went into equities (nflx, aapl, open, and other popular names in an attempt to get the individual sucker investor in the market). Since equities ran up so high and so fast, no one fell for the "banana in the tailpipe". With no one left to hold the bag, banks won't be buying equities bc they won't be able to pump and dump - they'd be pumping themselves. No reason for the banks to buy more treasuries - they just sold them. So where will the $$ go??? (they won't be lending it out for fear of getting caught in a future negative carry trade) Commodities and emerging markets seem to be the only place.
on Fri, 11/12/2010 - 12:30
#722496
I was all set to buy my 4th flipdown screen for our 3rd car which we park in our 2nd home my newfound "wealth." Now i'm not feeling quite as confident now. Thanks a lot, B. SacK.
on Fri, 11/12/2010 - 12:58
#722603
Let's face reality. This market is set up to crash.
And it is always driven by excess leverage, a change in the rules and a sudden change in where leverage flows. Now from the markets to the FED. More signs...
VIX swing 22-18-21 in one week
Massive leverage in commodities crushed by margin in silver
Selling of liquid assets to meet margin in commodites... more margin tightening must be coming
Insider selling avalanche
Fed's magic bullet is spent. They have to think of another "tool"
Europe PIIGS default may happen soon. That story line is just like Lehman.
Bernanke is a LIFELONG academic 35 years in the ivory tower. He is clueless about what ACTUAL consumer inflation (incl. food energy) is doing to buying power and confidence.
on Fri, 11/12/2010 - 13:09
#722640
but H. Wanger said we have "decades" for this all to play out!??
on Fri, 11/12/2010 - 13:07
#722632
POMO in the kisser right on your keister.
on Fri, 11/12/2010 - 13:39
#722781
Brian Sacks is about to hit the buy button, it would be a bad PR if markets closed in red.
on Fri, 11/12/2010 - 14:35
#722973
Today creates the "dip" which filters Christmas bonuses into the Santa rally ... uh, I mean, the black hole.
on Fri, 11/12/2010 - 14:46
#723009
POMO has utterly failed me! *cries deep into night*