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$7.8 Billion POMO Ends, Fed To Pass $1 Trillion In Treasury Holdings On December 21

Tyler Durden's picture





 

The countdown to $1 trillion is on: with today's $7.8 billion POMO just completed, at a very low 2.3x submitted to accepted ratio, meaning PDs had been perfectly positioned to ramp risk higher, total Fed holdings has now risen to just over $966 billion. And with just over $37 billion in scheduled POMOs through the end of December 21, the Fed will hold just over $1 trillion in US Treasurys on the day of the winter solstice. We are confident that pagan Fed frontrunners everywhere will be celebrating with $1,000 bottles of Cristal. As for today's POMO, while we did see a monetization of the just auctioned off 7 Year PK0 Cusip, it was a token $60 million, as even courtesy of the Fed's generous commissions and wide spreads, the PDs still will be hard pressed to make free taxpayer bonus money on a bond that priced at 2.253% three short weeks ago, and is now at 2.68%.

 

 


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Mon, 12/13/2010 - 12:33 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Quadrillion will be the new Trillion in 2011.

We'll all be billionaires.

Such a warm and fuzzy feeling.

ORI

http://aadivaahan.wordpress.com

Mon, 12/13/2010 - 12:34 | Link to Comment TWORIVER
TWORIVER's picture

What will PD's do when POMO runs out on 12/21?

Mon, 12/13/2010 - 12:38 | Link to Comment EscapeKey
EscapeKey's picture

The next one will be announced.

Mon, 12/13/2010 - 12:42 | Link to Comment cunningtrader
cunningtrader's picture

Who gives a crap about these meaningless auctions? At the end of the day, the owners of the USFED /NYFED own America's ass, through indebtedness, they will have their new world order by debt or war, either way, they win.

Here is a link to a tree chart, showing How the Rothschilds and Rockefellers, have majority shareholdings in the USFED/NYFED. Link:  http://www.save-a-patriot.org/files/view/whofed.html  ** Source: Federal Reserve Directors: A Study of Corporate and Banking Influence. Staff Report,Committee on Banking,Currency and Housing, House of Representatives, 94th Congress, 2nd Session, August 1976. The Rothschilds own everybodie's ass, when you have a lazy Quadrillion or two kicking around in the vaults:

Accounting for the Rothschild Wealth and Influence


Morton (1962) noted that the Rothschild wealth was estimated at over $6 billion US in 1850. Not a significant amount in today’s dollars; however, consider the potential future value compounded over 147 years!

Taking $6 billion (and assuming no erosion of the wealth base) and compounding that figure at various returns on investment (a conservative range of 4% to 8%) would suggest the following net worth of the Rothschild family enterprise:

$1.9 trillion US (@ 4%)
$7.8 trillion US (@ 5%)
$31.5 trillion US (@ 6%)
$125,189.1 trillion US (@ 7%)
$491,409.0 trillion US (@ 8%)

Mon, 12/13/2010 - 13:05 | Link to Comment SheepDog-One
SheepDog-One's picture

Thats the whole point, this is all just a more refined total purchase of a nation, as grandaddy Rothschild did in England. Back then, he spread false rumors thru the media he bought that Napoleon had won and England had lost....when the markets collapsed overnite he bought everything for a song then reversed the headlines. England had won, but had been totaly taken over and purchased by Rothschild.

Same thing here, collapse the markets, then 'save' us thru monetizing the debt, end of the day the banks own the USA lock stock and barrel, every piece of rock and grain of sand in the FED's pocket. 

I dont care about bulls and bears and whats green for the day, the country is gone and youre just a landless peasant, thats the whole game.

Mon, 12/13/2010 - 13:25 | Link to Comment prophet
prophet's picture

All this is then pretty much old news and widely known.  Amazing how people are so slow to catch on.  Maybe, they already know all that and it means little to them so they move on and enjoy their lives (kind of like life's version of buy the dip).  Leaving the stunted idealists to lament over it all.  Oh the humanity.

Mon, 12/13/2010 - 14:52 | Link to Comment dnarby
dnarby's picture

The Fed only exists at the pleasure of the gov't.

The gov't is still elected by the people.

Things might have to get worse before this changes, but if they get much worse, believe me... They will change. 

Tricky balancing act for TPTB..!

Personally, I think they've overestimated their capabilities, as there's an awful lot of momentum built up for things to get worse...  But I'm an optimist (ain't irony grand?).

Either way, I'm shrugging out until this resolves.  Why bother?

Mon, 12/13/2010 - 13:27 | Link to Comment merehuman
merehuman's picture

cape cod high end homes catching fire. Arsonist leaves graffity on fence claiming the rich caused it.

Mon, 12/13/2010 - 13:59 | Link to Comment NotApplicable
NotApplicable's picture

Next, the rich person pays arsonist, and another underwater mortgage dries up.

Mon, 12/13/2010 - 14:07 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Goldman Sachs is already trading 'arson derivatives.'

I hear they are well-hedged, too.

Mon, 12/13/2010 - 12:44 | Link to Comment wiskeyrunner
wiskeyrunner's picture

Fake rigged market, all propped up by the FRBNY. The days of buying something on sale are gone. The younger people are stuck with artificial inflated assists. Get out of our market FRBNY.

Mon, 12/13/2010 - 13:53 | Link to Comment More_sellers_th...
More_sellers_than_buyers's picture

+1   !!

Mon, 12/13/2010 - 12:46 | Link to Comment John McCloy
John McCloy's picture

Many years ago we used to POMO $8 Billion annually. I thought that was all the money in the world. Now, it’s a day’s pay.

-Gordon Bernanke

Mon, 12/13/2010 - 13:23 | Link to Comment Max Hunter
Max Hunter's picture

I was saying to a friend: I remember back in 2003/2004 when we were running a deficit of 450 billion per year the release of budgets with these numbers back then caused the dollar to tank and many to talk about how this was not sustainable..

At this time, Congress is about to pass a bill that will add this amount per year for the next 2 years on top of the deficit. Hardly a peep from the markets..  The bond market WILL get ugly..

Mon, 12/13/2010 - 12:47 | Link to Comment gloomboomdoom
gloomboomdoom's picture

critics of QE2 miss the whole point....if rates go up
because of economic recovery then QE2 is a minor attempt to help
the whole process...economic recovery is what Bernanke and Obama want...my
gravest fear is the country hands the economic reins over to an internet blogger that has an agenda due to the fact he is upset the economy isn't collapsing quickly enough.

Your solutions? Allow a Crushing Deflationary Depression so you can take your millions and "buy up" America from Mom & Dad that lost 20% of their money during the previous recession.

America is getting ugly. The sad truth? It is totally unnecessary!

Mon, 12/13/2010 - 13:00 | Link to Comment Nucking Futs
Nucking Futs's picture

Where are you getting your kool-aid?  I'd like some, this whole financial goat rodeo is kind of depressing.

Mon, 12/13/2010 - 13:37 | Link to Comment merehuman
merehuman's picture

ok anyone really wanting to fix the problem..

1 bad guys go to jail

2 outsourcing made illegal

3 tariffs on all goods

4 tax the rich and the corporations

5 Stealing our resources (water) must stop.

6 Total honesty, you lie =you die until trust is reestablished.

7. move from "profit" to "fair exchange"

I am not a college grad, not even highshool i hope it doesnt show too much.

In any case, you and i cannot do business if we dont trust each other. Without that trust we are going no where. Whats true for you and i is true for all transactions

Mon, 12/13/2010 - 17:37 | Link to Comment Max Hunter
Max Hunter's picture

Until your mind has been poisoned with the knowledge of modern economic mechanics you will continue to take a realistic and honest view of the way things should be.

You will be called all kinds of names like commie, socialist, idealist, dreamer, etc... But the truth is, we need common sense and need to restore the character of this nation.. This so called free market we have is nothing but a cover for the predators to consume the weak and unfortunate.  It's sad but I feel only a complete collapse will change things.

We live in a plutocracy where the ruling elite has 90% of our population under hypnosis and convinced they are free and we live under free market capitalism.. Nothing could be further from the truth..

Mon, 12/13/2010 - 12:48 | Link to Comment Traianus Augustus
Traianus Augustus's picture

Another day and another robbery by the banking cartel.  Integrity and trust still nowhere to be found in the land of the "FREE"

Mon, 12/13/2010 - 13:05 | Link to Comment gloomboomdoom
gloomboomdoom's picture

Participation in the "robbery" is volantary. Always has been. When Soccer Moms are getting better returns, it's time to stop the dead-wrong dooming. No?

Families are thankful to recover nearly all their loses thanks to Ben and the FED. THANK THEM! Don't hate them!

Mon, 12/13/2010 - 12:49 | Link to Comment Ahmeexnal
Ahmeexnal's picture

So do you love him yet? Do you?

http://www.marketwatch.com/story/five-reasons-to-love-bernanke-2010-12-1...

 

Ignore the pundits and politicians who have read a few chapters by Milton Friedman and think they know something (or anything) about monetary theory. These economic illiterates believe the expansion of the Fed balance sheet means more inflation and debasement of the U.S. dollar. They do not understand that classical monetary theory was developed in a bygone era of fixed exchange rates and the gold standard.

 

 

The final reason that I love Ben Bernanke is the simplest: The man is independent. He reports to no one. He listens to, but does not have to obey, politicians.

 

Now y'all pull out your praying rugs and get on twenty nails 5 times a day towards Ben Bernuklear.

 

Mon, 12/13/2010 - 13:01 | Link to Comment gloomboomdoom
gloomboomdoom's picture

Milton Friedman was a libertarian,Very wise man indeed.

He just also happens to be chairman Bernanke's greatest mentor!

Mon, 12/13/2010 - 13:05 | Link to Comment jahbless
jahbless's picture

MF is also indirectly responsible for thousands upon thousands of deaths globally due to the economic shocks backed up by military force that is his business model.

I think we're seeing that once you run out of people to kill and loot, the machine grinds to a halt.

So who do we use for fodder now?

Mon, 12/13/2010 - 13:07 | Link to Comment gloomboomdoom
gloomboomdoom's picture

fair enough, good point.

The "projection" of Military Force is largely what has allowed the United States to retain its trophy as World's Reserve Currency.

Important reason why cuts to the military budget should be the last.

It's working! Other countries are free to *drop* the USD anytime they may

Mon, 12/13/2010 - 13:05 | Link to Comment TruthInSunshine
TruthInSunshine's picture

I believe that Michael Shulman is someone many would refer to as a 'useful idiot.'

Is the Wall Street Journal, a Murdoch owned enterprise, full of useful idiots, mouthpieces and advocates for Bernanke's madness?

Mon, 12/13/2010 - 13:01 | Link to Comment TruthInSunshine
TruthInSunshine's picture

8 billion a day used to put up A LOT more points on the indexes.

I'd be worried, Ben Bernanke. Really and truly worried...

Mon, 12/13/2010 - 13:02 | Link to Comment Mark Medinnus
Mark Medinnus's picture

Beware the Ori.

Mon, 12/13/2010 - 13:20 | Link to Comment mikla
mikla's picture

Mon, 12/13/2010 - 13:10 | Link to Comment squexx
squexx's picture

Someone fly a plane into the Fed!!!!

Mon, 12/13/2010 - 13:10 | Link to Comment prophet
prophet's picture

Mon, 12/13/2010 - 15:01 | Link to Comment plocequ1
plocequ1's picture

But, But, But they cant do this. What about the deficit? What about the bond market? What about gold? AHH, Fuck it. I better Just buy stocks and shut the fuck up.

Mon, 12/13/2010 - 13:32 | Link to Comment RobotTrader
RobotTrader's picture

Yes, the fake, rigged, market is now making new high for the move. Lots of screamers on fire, like LNN, NOV, etc. breaking out to new multi-year highs. Pretty crazy.

Mon, 12/13/2010 - 13:36 | Link to Comment dan10400
dan10400's picture

So the US taxpayer will be the bag holder as these holdings tank in a rising interest rate environment?

Mon, 12/13/2010 - 13:38 | Link to Comment Sophist Economicus
Sophist Economicus's picture

Insanity out in the open!  

High bullish sentiment, Rosie throws in the towel, 11% rise in S&P forecasted for 2011, Central Banks everywhere buying Gubermints dung, Leo still buying dips in Solar stocks.    I dunno about you guys, but me thinks something big is about to happen REAL SOON....

Mon, 12/13/2010 - 13:48 | Link to Comment HarryWanger
HarryWanger's picture

Nothing "big about to happen" just a nice slow move upward. .25-.50% daily grind higher. The market has bought at least two more years of gains with all the money thrown in. At least keep playing along with it while you can. Anything contrary to that is fairly stupid.

Mon, 12/13/2010 - 13:58 | Link to Comment More_sellers_th...
More_sellers_than_buyers's picture

Challenge....we will see....but since when has following the sheep led to anything but slaughter... im not a bull or a bear...but i wouldnt want to be long and walk away from my screen to take a shit, because this is gonna turn fast

Mon, 12/13/2010 - 13:55 | Link to Comment Al Huxley
Al Huxley's picture

Don't bet on it.  Eventually, something big will happen, but at the moment, there's no evidence for impending doom in the way the markets are acting.  Fake or not, the uptrend is alive and well, and probably will be as long as the FED keeps giving away money.

Mon, 12/13/2010 - 13:58 | Link to Comment DavidRicardo
DavidRicardo's picture

Here's something new to wrap your head around:

 

 

Yields don't matter.

Mon, 12/13/2010 - 15:51 | Link to Comment I Am The Unknow...
I Am The Unknown Comic's picture

....I just fainted.  Thank goodness I'm already breathing into a sack!

Mon, 12/13/2010 - 14:13 | Link to Comment 99er
99er's picture

SPX

The fat lady is just about done singing.

http://99ercharts.blogspot.com/2010/12/spx_13.html

Mon, 12/13/2010 - 14:19 | Link to Comment Sophist Economicus
Sophist Economicus's picture

Good!   She was starting to grate on my nerves

Mon, 12/13/2010 - 16:27 | Link to Comment Mad Mad Woman
Mad Mad Woman's picture

This is insane. How much longer can the Fed keep doing this? At some point it has to blow up, right?

Mon, 12/13/2010 - 17:22 | Link to Comment I Am The Unknow...
I Am The Unknown Comic's picture

I just found this and can't wait to share it.  I think I'm in love....

http://www.phydiux.com/bill_lumbergh_soundboard.cfm

 

Mon, 12/13/2010 - 19:23 | Link to Comment goober
goober's picture

QE2 hasn't worked as well as expected, at least not yet? Not sure exactly what to make of it, whether it is actual market reluctance or some kind of headfake? I seriously wonder if some of the hedgy's and maybe a few PDs are having their doubts based on their positions. The view from their window is likely quite different than from everyone else's. Been following ES and AUD/JPY as a very consistant indicator previously, but not as strong of late. Still working to a degree though ? Today they showed the turn in late afternoon prior to TF and NQ. This QE thingy is getting very dicey indeed ? I have not been able to identify an consistant indicator in the bond realm ? Any suggestions, hints ?

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