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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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Thu, 09/30/2010 - 11:06 | 615426 scatterbrains
scatterbrains's picture

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

Thu, 09/30/2010 - 10:26 | 615349 hedgeless_horseman
hedgeless_horseman's picture

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

Thu, 09/30/2010 - 10:28 | 615353 unwashedmass
unwashedmass's picture

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

Thu, 09/30/2010 - 10:35 | 615364 Pining for the ...
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?

Thu, 09/30/2010 - 11:15 | 615469 EscapeKey
EscapeKey's picture

"PPT" is what will happen.

Thu, 09/30/2010 - 11:43 | 615582 Pining for the ...
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.

Thu, 09/30/2010 - 10:31 | 615358 snowball777
snowball777's picture

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

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

Thu, 09/30/2010 - 10:49 | 615392 packman
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.


Thu, 09/30/2010 - 11:01 | 615411 Caviar Emptor
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. 


Thu, 09/30/2010 - 10:32 | 615359 Bearster
Bearster's picture

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

Thu, 09/30/2010 - 10:34 | 615366 alien-IQ
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.

Thu, 09/30/2010 - 10:37 | 615374 Tyler Durden
Tyler Durden's picture

Ergo the bold.

Thu, 09/30/2010 - 10:49 | 615390 berated
berated's picture

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

Thu, 09/30/2010 - 10:53 | 615398 alien-IQ
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.

Thu, 09/30/2010 - 11:02 | 615415 Caviar Emptor
Caviar Emptor's picture


Thu, 09/30/2010 - 12:39 | 615768 Dismal Scientist
Dismal Scientist's picture

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

Thu, 09/30/2010 - 11:08 | 615434 heyligen
heyligen's picture

And growing...

Thu, 09/30/2010 - 10:36 | 615371 Turd Ferguson
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.

Thu, 09/30/2010 - 11:07 | 615432 cossack55
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.

Thu, 09/30/2010 - 11:22 | 615512 tmosley
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.

Thu, 09/30/2010 - 12:58 | 615840 Turd Ferguson
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.


Thu, 09/30/2010 - 11:33 | 615547 Dr. No
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.

Thu, 09/30/2010 - 12:16 | 615693 tmosley
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.

Thu, 09/30/2010 - 10:45 | 615380 lbrecken
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.

Thu, 09/30/2010 - 10:50 | 615393 goldmiddelfinger
goldmiddelfinger's picture

The market will speak soon. Very soon.

Thu, 09/30/2010 - 10:47 | 615383 InconvenientCou...
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.

Thu, 09/30/2010 - 10:50 | 615394 willien1derland
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 -

Thu, 09/30/2010 - 10:59 | 615410 Xedus129
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

Thu, 09/30/2010 - 11:11 | 615445 scatterbrains
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.

Thu, 09/30/2010 - 12:04 | 615655 LoneCapitalist
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.

Thu, 09/30/2010 - 10:54 | 615399 carbonmutant
carbonmutant's picture

GMCR is finding some love this morning...

Thu, 09/30/2010 - 10:55 | 615400 Dr. Engali
Dr. Engali's picture

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

Thu, 09/30/2010 - 10:57 | 615404 no life
no life's picture

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

Thu, 09/30/2010 - 11:03 | 615408 Threeggg
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 !

Thu, 09/30/2010 - 11:04 | 615413 carbonmutant
carbonmutant's picture

RISK OFF! Russel Futures going negative...

NFLX down $9 off this mornings highs...

Thu, 09/30/2010 - 11:02 | 615417 DavidC
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...).


Thu, 09/30/2010 - 11:02 | 615418 99er
Thu, 09/30/2010 - 11:04 | 615422 bankonzhongguo
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.



Thu, 09/30/2010 - 11:19 | 615493 Shameful
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.

Thu, 09/30/2010 - 11:05 | 615425 contrabandista13
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...





Thu, 09/30/2010 - 11:09 | 615439 barkingbill
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. 

Thu, 09/30/2010 - 11:10 | 615444 jbc77
jbc77's picture

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

Thu, 09/30/2010 - 11:10 | 615446 Lord Peter Pipsqueak
Lord Peter Pipsqueak's picture

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

Thu, 09/30/2010 - 11:12 | 615457 barkingbill
barkingbill's picture

in the red baby in the red. 

their button on the keyboard got stuck...

Thu, 09/30/2010 - 11:18 | 615490 barkingbill
barkingbill's picture

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

Thu, 09/30/2010 - 11:20 | 615495 cnbcsucks
cnbcsucks's picture

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


Thu, 09/30/2010 - 11:23 | 615509 Xedus129
Xedus129's picture

U.S. stocks lose steam as technology lags

stupid technology, ruins the fun.

Thu, 09/30/2010 - 11:20 | 615500 Threeggg
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"


Thu, 09/30/2010 - 11:26 | 615522 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

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

Thu, 09/30/2010 - 11:26 | 615526 goldmiddelfinger
goldmiddelfinger's picture

love to see triple digit red after trip dig green

Thu, 09/30/2010 - 11:28 | 615529 john_connor
john_connor's picture

Looks like the $4 billion wasn't enough.  Outside In reversal day would be extremely bearish

Thu, 09/30/2010 - 11:31 | 615539 Yikes
Yikes's picture

Help me out John.  What constitutes an " Outside In Reversal"?



Thu, 09/30/2010 - 11:37 | 615564 john_connor
john_connor's picture

New intermediate high intraday (this morning) relative to yesterday high however close in the red lower than yesterday low.

Thu, 09/30/2010 - 11:44 | 615590 Yikes
Yikes's picture

Got it. Thanks.

Thu, 09/30/2010 - 11:33 | 615544 Lord Peter Pipsqueak
Lord Peter Pipsqueak's picture

Has Brian's screen got a message something along the lines of "Windows has performed an illegal operation and will now close"?

Thu, 09/30/2010 - 11:34 | 615550 dukeness
dukeness's picture

Every time I read the phrase POMO, I hear Phil Collins 'In the Air Tonight' singing "POMO POMO".

When do we get to the point where he's back singing "No More!  No More!"?

Thu, 09/30/2010 - 13:23 | 615914 Pinky
Pinky's picture

We are close to the end game. Very close. Once they get as close to 100% as they can get, the Fed will implode and take all that paper with it.  It might even be accompanied by a "WHOOPS! we just lost all our DATA!" false flag. 

A bunch of SEC case files will somehow end up as collateral damage. WHOOPS! "Who would have guessed . . . " All will be forgiven because no one will have any papers proving they own anything, or any evidence of the wrongdoing behind it. Possession being 9/10 . . . Yada yada.

So, for once the little guys are going to make out. They will get to keep their homes and (thanks to the PPT) their 401Ks. They will get "jobs:" The government will pay them to dig holes and fill them up until the economy recovers. The pirates will be recast as pirate-heroes who were really doing Gods Work after all.  All will be forgiven.

At least, that's my prediction.  I've had an inkling about this for a long time (2007ish), once I discovered the derivatives were no recourse and that US mortgage paperwork was, in many cases, "lost" along with the creation of said derivatives, aaaaand . . . Well wouldja look at that: The long-planned, economic-hitman-let's-do-this-like-we-did-Argentina-styled takedown of the US will have been officially thwarted by a team of banksters and their robot armies. And for what might be the first time ever, a group of people will have succeeded taking the master's house down, from inside the house, using the master's tools.

Kind of brilliant, actually. And THAT is why (I think) they are claiming that the recession is "over."  Not that it is, but that they're at the point where they really do think they can pull this off.  Right now Mr. Greenspan is probably sitting in his lair wringing his hands and hissing "Exxxxcelllent . . ."

You heard it here first! Or maybe not? Road to Roota, beetchez. Someday you'll thank them for suppressing the price of silver and gold: Look how much the little guys got to buy on the cheap before the implosion.

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