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$7-9 Billion POMO Starts

Tyler Durden's picture




 

Today's $7-9 Billion POMO focusing on bonds due 2018-2020 has started. This one wil be carefully watched because if Brian Sack can't create at least some "wealth effect" when Europe's (and America's) taxpayers have just doubled down by another $100 or so billion, then the wheels will really be falling off the Keynesian endgame wagon. As for the POMO, the most amusing inclusion CUSIP is the PC8 due 11/15/2020: this is the 10 year auctioned off just two weeks ago on November 9.

 

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Mon, 11/22/2010 - 11:23 | 746298 RobotTrader
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And as crude oil continues to collapse, discrediting the Peak Oilers...

The retail stocks continue their relentless move to 2-year highs.

Looks like the "unintended consequence" of world record money printing is an unparalleled consumer spending boom.

LOL...

Mon, 11/22/2010 - 11:44 | 746356 Dr. No
Dr. No's picture

"And as crude oil continues to collapse, discrediting the Peak Oilers..."  I find it funny (an you are not alone in this ROBO), how someone will take a couple of day's price change (up or down) to argue against a fundamental theory. When price goes up next week, what will be your rationale?

Mon, 11/22/2010 - 11:53 | 746398 Bill Lumbergh
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This is Robo...there is no rationale.

Mon, 11/22/2010 - 11:58 | 746414 Boilermaker
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But there is a chart!  Multiple charts showing upward moves in a market down almost double / triple digits!

But, what the fuck, let's hand select some up stocks and cheerlead it.  YEEEAAAHHH.

Mon, 11/22/2010 - 12:50 | 746614 Hulk
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Exponential increase in the number of oil wells, over the last ten years, to maintain flat oil production... (that should scare the shit out of everyone...who is half awake)

Your shots at Peak Oil are going to disappear as fast as your Alf charts and Johnny Bravo.

Then on to your next set of nonsensical viewpoints....

Mon, 11/22/2010 - 11:24 | 746303 unwashedmass
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um...if they can't move their HFT faves like BAC and GE higher, the game is ending.

both are red now.

Mon, 11/22/2010 - 11:24 | 746305 RobotTrader
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And poor Karl Denninger....

Watching all this POMO money lift the stocks with the most absurd P/E ratios to even higher highs....

Mon, 11/22/2010 - 11:51 | 746386 Bill Lumbergh
Bill Lumbergh's picture

Time to come out and reveal yourself as a bear dressed up in a bull costume...you read Karl Denninger, Alf Field, and Jim Willie at every opportunity.

Mon, 11/22/2010 - 11:25 | 746306 unwashedmass
unwashedmass's picture

 

um...if they can't move their HFT faves like BAC and GE higher, the game is ending.

both are red now.

AUD/JPY dropping too......not good, Brian, try harder.

Mon, 11/22/2010 - 11:27 | 746310 Boilermaker
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The REITS are continuing their gravity defying IN-YO-FACE levitation act, again.

Mon, 11/22/2010 - 11:36 | 746312 hedgeless_horseman
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Last week's must-have investment, CUSIP PC8 due 11/15/2020, is this week's buyer-of-last-resort purchase.

Thursday, February 25, 2010

 

"We're not going to monetize the debt," Mr. Bernanke declared flatly, stressing that Congress needs to start making plans to bring down the deficit to avoid such a dangerous dilemma for the Fed.

 

http://www.washingtontimes.com/news/2010/feb/25/bernanke-delivers-warning-on-us-debt/

Mon, 11/22/2010 - 11:36 | 746331 Boilermaker
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It depends on what the definition of "not", "going", "monetize", and "debt" mean.  It can get quite confusing to the lay-person.

Mon, 11/22/2010 - 11:47 | 746372 hedgeless_horseman
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Maybe Bernanke did not pinky promise, so he can't face financial-treason charges?

Mon, 11/22/2010 - 11:35 | 746330 RobotTrader
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Seems like anytime the CDO spreads start blowing out in Europe.

Investors immediately start dumping "hard assets" like gold and oil, and start pilling into "gimcrack" stocks like Best Buy.

Mon, 11/22/2010 - 11:37 | 746334 Boilermaker
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You lost me at "Investors".

Mon, 11/22/2010 - 11:56 | 746406 SheepDog-One
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What are these 'investors' you speak of? You using some new strange pig latin type language or what?

Mon, 11/22/2010 - 11:36 | 746332 Aductor
Aductor's picture

Does anyone know what Wadell & Reed is up to?

Mon, 11/22/2010 - 11:39 | 746341 RobotTrader
RobotTrader's picture

Well, one thing is for sure about these selloffs.

Money simply piles right back into bonds, driving interest rates back down to 45-year lows again.

Anything it takes to get the "Animal Spirits" going.

Mon, 11/22/2010 - 11:43 | 746351 Boilermaker
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Ewww...I like that.  It's not canned garbage, which is nice.

Mon, 11/22/2010 - 11:52 | 746387 SheepDog-One
SheepDog-One's picture

What is this 'money' you speak of, RoboT?

Mon, 11/22/2010 - 11:54 | 746399 SheepDog-One
SheepDog-One's picture

'BONDS" oh LOL that one slipped by me Robo....YEA thats surely what bankrupt unemployed foreclosed on Mr and Mrs America are doing right now, piling into U.S. Gooberment bonds!

Mon, 11/22/2010 - 11:44 | 746353 Threeggg
Threeggg's picture

Can we use tomorrow's POMO today if the 9000 million isnt enough today ?

 

Just askin ?

 

Mon, 11/22/2010 - 11:51 | 746385 SheepDog-One
SheepDog-One's picture

$9,000 million...sheesh look at this damn mess! And people are so conditioned to it they think its just the 'new normal'! 9,000 million dollars to prop the crap up just for a DAY!
HOW LONG can that garbage POSSIBLY go on for...can not be long!
I cant wait till very soon (probably already going on now) when these banksters have no more blood to suck and they start going after each other, hostile takeover style!

Mon, 11/22/2010 - 11:48 | 746375 SheepDog-One
SheepDog-One's picture

Not much 'wealth effect' materializing so far. I wonder when the POMO cavalry members will finally admit that POMO is NO'Mo?

Mon, 11/22/2010 - 12:06 | 746448 snowball777
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Sure it is....in Barbados, the Virgin Islands, St. Thomas, and the Caymans.

Mon, 11/22/2010 - 11:58 | 746409 virgilcaine
virgilcaine's picture

It does give better selling points thks pomo.

Mon, 11/22/2010 - 12:01 | 746426 Boilermaker
Boilermaker's picture

It also provides EXIT points for actual investors such as boomers.  This is a really perverted way to ensure that absolutely nothing but d-bag traders are left.

Mon, 11/22/2010 - 12:01 | 746430 slaughterer
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Looks like the worry of the day--besides POMO and the short T auctions and Ireland and "contagion"-- is if the dollar index might break out to the upside again like last week. 

Mon, 11/22/2010 - 12:04 | 746443 snowball777
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POM-Oh shit...

Mon, 11/22/2010 - 12:05 | 746446 Boilermaker
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REITS still in the green...like a bobber in the water, you just can't keep that shit down.  Stip malls and unoccupied big-box malls are just flat undervalued.   It's pretty simple, really.

Mon, 11/22/2010 - 12:07 | 746451 snowball777
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What can I say? Some people underestimate the utility of kindling.

Mon, 11/22/2010 - 12:08 | 746455 slaughterer
slaughterer's picture

REITS riding on nothing except providing a convenient toilet to the homeless villages--just like the beachfront condo strips of Venice, CA and Miami, FL.

Mon, 11/22/2010 - 12:10 | 746465 slaughterer
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It ain't over (today) until the SPX breaks 1190.

Mon, 11/22/2010 - 12:12 | 746471 Boilermaker
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Does anybody know what time they jam this and start the mysterious but relentless grind up to +22 on the DOW at the close?  I'm guessing 2:00pm EST but, hell, they might start early today.

Mon, 11/22/2010 - 12:14 | 746482 Convolved Man
Convolved Man's picture

Using Microsoft's Kinetic interfaces, traders pumping stocks will receive additional conditioning stimulus, surpassing perceived monetary reward.

Everything is proceeding as planned.

Mon, 11/22/2010 - 12:20 | 746514 slaughterer
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"Convolved Man":  a Wharton MBA should write a thesis about your avatar.   Nice.

Mon, 11/22/2010 - 12:16 | 746498 slaughterer
slaughterer's picture

Sack et. al. has to jam all the buyers of dollars right now...  They need to put the € on the PD buy-in list after lunch, then we can have a proper POMO rally.    

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