Brian Sack Is In The House: Today's POMO Begins

Tyler Durden's picture

Today's POMO of bonds maturing between 2021 and 2040, pretty much everything that still has any yield, has begun. Brian Sack is about to hand out around $4 billion to the Primary Dealers, as the Fed is hell bent on taking over as the second largest holder of US Treasuries within two weeks - Japan held $821 billion as of July, the Fed hold just over $800 billion and is buying about $10 billion a week. Which means that in about a month the Federal Reserve Bank of the United States will be the single biggest holder of debt issued by the United States of America! If that means that Netflix, BIDU and AMZN will need a billion to one stock split within the same time frame, so be it. For full results - same time, same place.

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scatterbrains's picture

Is pomo taking a poop or should we wait till 3:30 ?

hedgeless_horseman's picture

Ctrl-P, bitches!!!!!!!!

unwashedmass's picture

looks like everyone front ran the POMO today in stocks...should be interesting when it ends today.

Pining for the Fjords's picture

Yes and I wonder what will happen when the nitrous runs out around 11:30? A boat-load of bad news, flash crashes, the mortgage fiasco uncertainty... do the shorts line up for a quick strike when the pump is over?

Pining for the Fjords's picture

They better get it in gear then- DOW down 120+ in the last 2 hours, despite pomo.   SPXU at 11:00 has been tempting me for some time on these days... damn.

snowball777's picture

How many weeks until the Fed crosses-over with China?

(the Reds dropped what, 10% of theirs over the last year?)

packman's picture

Yes - not sure why China's left out of the discussion.  As of July they held slightly more than Japan (though going in the opposite direction the last few months, being net sellers for a while now).

Japan's buying like crazy again too ($93B over the past year) - presumably in their effort to strengthen the dollar vs. the Yen.  So even if the Fed goes above $821B, that doesn't mean they've surpassed Japan.


Caviar Emptor's picture

The Alliance members still trying to sustain un-reality by keeping yields low and creating inflation. That's an elite protecting its own interests. It's a desperate scramble and the stakes have gotten much, much higher. Meanwhile money flows out of the US and the alliance as fast as it can be replaced. 


Bearster's picture

Interesting that 10- and 30-yr yields are up.

alien-IQ's picture

I think the headline here buried the real lead. To me, the Fed becoming the single largest creditor is the real meaty story. There's more there to be had...dig in, you'll find gold in that story.

berated's picture

There's a Viking joke in there somewhere...

alien-IQ's picture

I'm looking forward to more on it from ZH because heaven knows we won't be seeing the MSM touch this story until they get around to a postmortem Biography on Bubbles Bernanke.

great job, as always, Tyler.

Dismal Scientist's picture

Better not own too much of your own debt, otherwise you'll look like Japan and the $ will strengthen...

Turd Ferguson's picture

Off topic but...keep an eye on gold today. The EE is trying to force an outside reversal day. If successful and they are able to shove it back down under 1300 by the close, a short-term top may be in.

So far, our buyer(s) of size have come in and driven price back up, nearly to unch. Let's watch the final three hours of trading to see what happens.

cossack55's picture

But the EE has all that old gold....wait, thats a cigarette.  Will american tobacco become the new gold?  Inquiring minds want to know and have another drink.

tmosley's picture

We got a friggin psychic medium here with a link straight to the minds of the EE.  Here we are with gold just above $1300.

Good call.

Turd Ferguson's picture

Wow! The buyer(s) of size are really pissing off the EE today. Anytime in the past, today would have been a $20+ down day. Today, not so much.

Now that said, Dec10 gold is still down about $2.50 as I write. Any type of down close, even if its only $0.50, will paint an ugly, outside reversal black candle on the chart.

A very, very interesting final 30 minutes to come.


Dr. No's picture

Its an epic effort! down to $1296 and look at silver.  It was to be expected, SLV was WAAAY over bought.  Grabbed a few puts this week on that signal.  After a drop to sub $20, I'll cash the puts and buy physical.

tmosley's picture

That's a good strategy.  I'm just afraid we might not see $20 again.  I'll just be buying with cash whenever I can.

lbrecken's picture

Why is not Congress more spec GOP putting an end to this sham.  The whole system should collapse this damn bubble BEN buying almost $1 T in debt when we only have what $13T oustanding cause GDP is under 2%?  Some better start saying something.

goldmiddelfinger's picture

The market will speak soon. Very soon.

InconvenientCounterParty's picture

The U.S. is like that idiot relative that shows up drunk to Thanksgiving dinner and hits everyone up for money. It goes on for years then finally, mercifully, the offender is thrown in jail with no one willing to post bail.

willien1derland's picture

I wish ZH had a cable channel because the yo-yos I work with are all 'AMPED' about the 'good' economic news - I wish, in some ways, that i could achieve that level of naivety-POMO adjusted equity values are one issue & I greatly appreciate the coverage - but what is with the collusion with the large media outlets? Spin is one thing, outright fraud another - my concern is that the company I work for wants to increase production (i.e. inventory) due to the longer lead times from suppliers - the issue is our cash position does not support this optimistic approach & with banks about to come under additional pressure credit lines will contract & well....Need to choose the RED or BLUE pill I guess - thanks for the forum to rant -

Xedus129's picture

Reminds me when I told this software company I interned for that they should diversify and stop selling to real estate brokers (in 2007).. They laughed at me.  Now they laid everyone off.. ha ha ha

scatterbrains's picture

seems pretty simple to me..  the "media" moves stocks.. they front run their  own news stories.. I'm sure the SEC looks the otherway probably because all these crooks have dirt on eachother so better for the SEC to pretend they didn't notice anything going on.

LoneCapitalist's picture

I know what you mean. Ignorance truely is bliss. It would be nice to go to bed just one night thinking everything is right with the world.

carbonmutant's picture

GMCR is finding some love this morning...

Dr. Engali's picture

What happens when the fed has to unwind this trade? Do they hold them to maturity?

no life's picture

The Sack must of lost his sack.. market going flaccid!

Threeggg's picture

"Until it doesn't work anymore"

From the looks of it today that could happen at any moment.

I think that wall street and "the man" have under estimated one thing that emplores the common man to seek the truth.

"The Internet"

It's a war between Wallstreet and Gold.

Man 4 billion buys less than 2 hours of "Pump"

I guess a Dollar doesn't buy what it use too.

Oh well, Back to watching the POMO fail !

Have a great day !

carbonmutant's picture

RISK OFF! Russel Futures going negative...

NFLX down $9 off this mornings highs...

DavidC's picture

$4 billion?

That's a bit more like it, the $550 million the other day was pathetic and only caused a 100 odd point Dow turnaround upwards following the dismal figures.

With the Dow today doing a 100 point turnaround DOWNWARDS, let's see what $4 billion can do.

Sarcasm and irony off (as someone missed this on one of my comments the other day...).


bankonzhongguo's picture

Just as a refresher, when the Fed was empowered in 1920-30s, it was only done on condition that the US government could provide ITS banker with a steady revenue stream .  Presto! Payroll Taxes.

Now, 100 years later, the Fed is emerging as the OWNER of America; its wealth, its future labor of its Citizens, the rights to the Land.  What new demands will the Fed (its ahreholders) levy upon us next?

Things are so openly corrupt in this; the Fed orders the Tresasury to issue bonds, which the Fed buys en mass, which the Fed then negotiates a later settlement when Obama defaults.

Would we would be better off if Al-Qaeda nuked the Fed?

Would it be an act of terrorism to destroy all paper and electronic and tax/title records in the local county assessor/recorder's office?

I don't think Congress will do it.



Shameful's picture

Why would the CIA...errr... terrorists attack part of their power structure?  There was a coup a long time ago and they are just finishing up devouring all our wealth and rounding us up into physical, psychological, legal pens.  At least if people got focused on the Fed we might have a way out when people ask how they have so much power and no accountability.  I'll bet there has been a lot of regret over letting the Internet come to the masses, to much information about their crimes.

contrabandista13's picture

I need a close basis s&p under 1136 and a gap opening under 1114 tomorrow for the back to back snake eyes....  It's a long shot, a real long shot, however I have a feeling that someone is going to shake the tree and if they shake it hard enough, there's a few elephants that might drop....


Someone throw me a bone here... Eco needs a pair of Guccis...





barkingbill's picture

both faber and rogers think the market is going will eventually. wall street will eventually be humbled . im looking forward to it. 

jbc77's picture

Whats up with the market faling off a cliff right after POMO?

Lord Peter Pipsqueak's picture

Turn the machies back on............,Brian where are you.........Brian?..............

barkingbill's picture

in the red baby in the red. 

their button on the keyboard got stuck...

barkingbill's picture

the dow, nasdaq is running off a cliff, AAPL down 1.50% and falling

cnbcsucks's picture

As goes AAPL, so goes the whole market...


Threeggg's picture

Man !

Benny is going to have to cut down another stand of tree's to get this POMO going.

I predict.........................................

"Tree's will become an endangered species within the next few months"


Dollar Bill Hiccup's picture

I think Brian had his half brother, Li Ka Mi run this operation today.