This page has been archived and commenting is disabled.

Fed Cancels POMO

Tyler Durden's picture




 

Who would have thought that monetizing our way to a bright Weimar future is "market contingent." With the EU dude crashing the market at 10:59 am and spooking the Primary Dealers, what does one expect?

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 03/16/2011 - 11:13 | 1060621 cossack55
cossack55's picture

Ran out of ink. I've been warning about peak-ink.

Wed, 03/16/2011 - 11:19 | 1060673 scythian empire
scythian empire's picture

GS heard you and their 48 hour old puts are working out lovely.

Wed, 03/16/2011 - 11:18 | 1060674 Tail Dogging The Wag
Tail Dogging The Wag's picture

"peak-ink"

Brilliant!

lmao

Wed, 03/16/2011 - 11:22 | 1060699 scythian empire
scythian empire's picture

GS heard you and their 48 hour old puts are working out lovely.

Wed, 03/16/2011 - 12:33 | 1061262 frank
frank's picture

Why would they cancel the POMO? I had my life savings in a wheelbarrow ready to go to the grocery store and get a loaf of bread.

Wed, 03/16/2011 - 11:13 | 1060624 DonutBoy
DonutBoy's picture

Actually I expected them to double to treble it.

Wed, 03/16/2011 - 11:14 | 1060629 CPL
CPL's picture

Anyone want to play the call game.

 

Lowest point, -2.00%...end of day close will be 0.01% positive.

Wed, 03/16/2011 - 11:12 | 1060631 AnarchoCapitalist
AnarchoCapitalist's picture

With the EU dude crashing the market at 10:59 am

 

LOL

Wed, 03/16/2011 - 11:21 | 1060684 iota
iota's picture

+1

Wed, 03/16/2011 - 11:22 | 1060705 iota
iota's picture

+1

Wed, 03/16/2011 - 11:12 | 1060633 hedgeless_horseman
hedgeless_horseman's picture

If it is all going to shit, can it please do so before April 15th?

Wed, 03/16/2011 - 11:18 | 1060676 tmosley
tmosley's picture

lol, i've been putting off doing my taxes for the exact same reason.

Wed, 03/16/2011 - 11:26 | 1060731 Dr. Richard Head
Dr. Richard Head's picture

Hey, there are more of us in this boat than I anticipated. 

Did Benny just roll snake eyes?  Time to crack the bubbly?

Wed, 03/16/2011 - 12:23 | 1061180 I Am The Unknow...
I Am The Unknown Comic's picture

I'm can't think of a better year to file for an extension, which I am doing. 

Wow, just think what would happen if everybody who owes taxes files an extension this year.  The treasury would run out of money and we would hit the debt ceiling faster, as they still have to issue refunds in a timely manner, yet revenues from tax receipts would be way down.  Hmmmm......

Wed, 03/16/2011 - 12:56 | 1061453 StychoKiller
StychoKiller's picture

You still have to pay taxes on time, the extension only allows you to file the tax return at a later date.

Wed, 03/16/2011 - 13:49 | 1061750 CPL
CPL's picture

Claim you are dead earlier than expected, rent/purchase everything cash, stop using facebook and setup a new online identity?  Basically vanish.

Wed, 03/16/2011 - 23:30 | 1065223 Double.Eagle.Gold
Double.Eagle.Gold's picture

How to be Invisible, on Amazon.

From cyberspace to crawl spaces, new innovations in information gathering have left the private life of the average person open to scrutiny, and worse, exploitation. In this thoroughly revised update of his immensely popular guide How to Be Invisible, J.J. Luna shows you how to protect yourself from these information predators by securing your vehicle and real estate ownership, your bank accounts, your business dealings, your computer files, your home address, and more.

J.J. Luna, a highly trained and experienced security consultant, shows you how to achieve the privacy you crave and deserve, whether you just want to shield yourself from casual scrutiny or take your life savings with you and disappearing without a trace. Whatever your needs, Luna reveals the shocking secrets that private detectives and other seekers of personal information use to uncover information and then shows how to make a serious commitment to safeguarding yourself.

 

There is a prevailing sense in our society that true privacy is a thing of the past. Filled with vivid real life stories drawn from the headlines and from Luna's own consulting experience, How to Be Invisible, Revised Edition is a critical antidote to the privacy concerns that continue only to grow in magnitude as new and more efficient ways of undermining our personal security are made available. Privacy is a commonly-lamented casualty of the Information Age and of the world's changing climate-but that doesn't mean you have to stand for it.

Wed, 03/16/2011 - 11:13 | 1060634 Id fight Gandhi
Id fight Gandhi's picture

What? Mo info!

Wed, 03/16/2011 - 11:14 | 1060635 doomandbloom
doomandbloom's picture

its over....the dream is collapsing...

Wed, 03/16/2011 - 11:17 | 1060669 AccreditedEYE
AccreditedEYE's picture

It's been collapsed for some time doom. Now they have to face the reality of it. Papering over problems and always finding an optimistic spin only works until the rest of the world calls you out for what you (the U.S.) are: a fraud.

Wed, 03/16/2011 - 11:24 | 1060711 cossack55
cossack55's picture

Drudge is reporting the Fraud-in-chief is going to Rio for the weekend.  What are wind patterns to Rio looking like?

Wed, 03/16/2011 - 11:28 | 1060749 papaswamp
papaswamp's picture

Wrong hemisphere...that is WHY he is going there. The Jet stream will carry the 'stuff' right through the middle of the US.

http://squall.sfsu.edu/gif/jetstream_norhem_00.gif

 

Wed, 03/16/2011 - 11:35 | 1060799 cossack55
cossack55's picture

That was my sneaking suspicion.

Wed, 03/16/2011 - 11:13 | 1060641 Mudflap
Mudflap's picture

Maybe it's really being run out of the Fed's Tokyo office and everyone left town...

Wed, 03/16/2011 - 11:15 | 1060648 luk427
luk427's picture

Bernanke's printing press is in full meltdown.

Wed, 03/16/2011 - 11:29 | 1060741 Dr. Richard Head
Dr. Richard Head's picture

His printing core is exposed now isn't it?

So what happens when the $4 billion a day of stock support, as POMO is cancelled, disappears?  Does it really disappear?  If primary dealers are flush with Benny two-ply and no one sees it, can you wipe your ass?

Wed, 03/16/2011 - 12:34 | 1061275 frank
frank's picture

Well it is such a large operation that it needed its own nuclear reactor.

Wed, 03/16/2011 - 11:15 | 1060649 Bill Lumbergh
Bill Lumbergh's picture

Who needs POMO...the way S&P 500 is trading with huge volume after any sizable selling I would say PPT will take the reins.

Wed, 03/16/2011 - 11:14 | 1060651 99er
Wed, 03/16/2011 - 11:16 | 1060655 camoes
camoes's picture

Just BTF SELL FIRST ASK QUESTIONS LATER, bitchez

Wed, 03/16/2011 - 11:16 | 1060656 bob_dabolina
bob_dabolina's picture

This is a smoothe move by Ben.

Go to buying SPY directly.

Wed, 03/16/2011 - 11:15 | 1060658 nobusiness
nobusiness's picture

Fed needed the cash to buy IYR, SPY, and IWM

Wed, 03/16/2011 - 11:16 | 1060662 TruthInSunshine
TruthInSunshine's picture

The BOJ and other central banks might as well pour all the fiat they're printing on top of Daiichi.

Wed, 03/16/2011 - 11:30 | 1060663 Mesquite
Mesquite's picture

edit

Wed, 03/16/2011 - 11:29 | 1060665 Mesquite
Mesquite's picture

edit

Wed, 03/16/2011 - 11:28 | 1060671 Mesquite
Mesquite's picture

edit

Wed, 03/16/2011 - 11:19 | 1060672 Mesquite
Mesquite's picture

Someone posted quite awhile ago:

'It's like picking up nickles in front of a steam roller..'

No sh*t..!!

Wed, 03/16/2011 - 11:22 | 1060695 lunaticfringe
lunaticfringe's picture

4x? Wtf messkit? You got DT's?

Wed, 03/16/2011 - 11:31 | 1060778 Mesquite
Mesquite's picture

popular topic..server jammed..

sorry

Wed, 03/16/2011 - 11:20 | 1060679 potatomafia
potatomafia's picture

So did you buy the dip? 

 

 

MUST.CLOSE.GREEN.

Wed, 03/16/2011 - 11:21 | 1060682 chancee
chancee's picture

Nice PPT work at 11:10.

Wed, 03/16/2011 - 11:20 | 1060685 jkruffin
jkruffin's picture

The delusional longs still thinks the FED has their backs?  LOL 

It's time to run for the hills when they cancel a POMO, it means trouble, and Benny doesn't want to catch the falling knife anymore.

Wed, 03/16/2011 - 11:20 | 1060687 oogs66
oogs66's picture

They needed their powerful computers to help Ben do his bracket picks so no POMO today.  Some things are more important than printing money.

Wed, 03/16/2011 - 11:20 | 1060689 oogs66
oogs66's picture

They needed their powerful computers to help Ben do his bracket picks so no POMO today.  Some things are more important than printing money.

Wed, 03/16/2011 - 11:20 | 1060690 oogs66
oogs66's picture

They needed their powerful computers to help Ben do his bracket picks so no POMO today.  Some things are more important than printing money.

Wed, 03/16/2011 - 11:22 | 1060692 JLee2027
JLee2027's picture

Treasury out of Cash???

Wed, 03/16/2011 - 11:21 | 1060696 eddiebe
eddiebe's picture

Who believes Ben anymore?

Wed, 03/16/2011 - 11:22 | 1060697 billwilson
billwilson's picture

Straight POMO to Japan. Thinking that Fed is buying back paper direct from Japan, instead of the market.

Wed, 03/16/2011 - 11:32 | 1060783 TwoShortPlanks
TwoShortPlanks's picture

This is Crash Prep....a big one too!

The Fed wants a crash now...they can blame something else.

The Bernank knows what "purge the rottenness from the system" means.

Wed, 03/16/2011 - 11:22 | 1060698 chancee
chancee's picture

Nice PPT work at 11:10.

Wed, 03/16/2011 - 11:24 | 1060723 alien-IQ
alien-IQ's picture

shit...meets...fan.

Wed, 03/16/2011 - 11:26 | 1060728 Smaug
Smaug's picture

Should I buy the fucking dip.

Wed, 03/16/2011 - 11:26 | 1060733 spanish inquisition
spanish inquisition's picture

I thought they only had $14.3 left and needed to POMO?

Wed, 03/16/2011 - 11:27 | 1060739 joetunn
joetunn's picture

Treasuries are up anyway, they safe the money for later...

Wed, 03/16/2011 - 11:45 | 1060748 baby_BLYTHE
baby_BLYTHE's picture

"The money printer will continue to print, that I’m sure."

Wed, 03/16/2011 - 11:29 | 1060750 johny2
johny2's picture

This mean they are now desperate, as it seems that even with all the disasters, wars etc dollar is not getting off the floor? 100% Sure Bernanke is confused about it.

Wed, 03/16/2011 - 11:29 | 1060756 oogs66
oogs66's picture

The fed/treasury have been using Pimco the entire crisis to tell the public what it needs so that when the fed/treasury implement Gross's statements as policy everyone thinks its smart.  I didn't think his decision not to buy treasuries was part of this strategy, but on other hand....   But go back to every major fed/treasury policy decision in past 3 years, and Gross has telegraphed it in advance on CNBC.  Could this really be start of the end of QEX?

Or could it be that the PD's agreed to prices that were below where they immediately traded after the EU energy minister comments and since the policy is to enrich the PD's they cancelled the trades?

Wed, 03/16/2011 - 11:51 | 1060914 MachoMan
MachoMan's picture

If it meant an end to QE X, then it would necessarily mean the price of treasuries would increase given the inherent requirement of the FED to defend its book/solvency...  QE is only ended when there is sufficient external demand for U.S. debt...  (i.e. only in temporary bursts at best and only in the short to medium term).  A failed auction is not an option given it necessarily defeats their ability to continue printing through status as the world's reserve currency.

Wed, 03/16/2011 - 11:29 | 1060758 deepsouthdoug
deepsouthdoug's picture

Interesting to know the Fed realizes it might not be able to fight a tsunami of fear.  Keep that in mind the market conditions can compel the Fed to throw in the towel.

Wed, 03/16/2011 - 11:30 | 1060772 Everybodys All ...
Everybodys All American's picture

All hands on deck ... Fed will just simply buy stocks now.

Wed, 03/16/2011 - 11:33 | 1060784 sbenard
sbenard's picture

No POMO? We're doomed, just doomed!

Wed, 03/16/2011 - 11:32 | 1060788 Henry Chinaski
Henry Chinaski's picture

Don't be caught short or underestimate TPTB ability to extend and pretend. 

Wed, 03/16/2011 - 11:32 | 1060791 What_Me_Worry
What_Me_Worry's picture

Just when you think you got Ben figured out, he throws you a curveball.

Wed, 03/16/2011 - 11:34 | 1060792 Double down
Double down's picture

The prices are too high, bonuses too small.  After all POMO has to be "cost effective".

Wed, 03/16/2011 - 11:42 | 1060854 TideFighter
TideFighter's picture

The Fed's balance sheet indicates that it will receive more than 500B in income from assets. I am wondering, what would stop the Fed from creating more debt against those assets without calling it "printing for POMO"?  

Wed, 03/16/2011 - 12:41 | 1061343 mophead
mophead's picture

Nothing will stop them. That's precisely what they'll do. QE forever....

 

Wed, 03/16/2011 - 11:47 | 1060868 sbenard
sbenard's picture

Is this one-day event, or is POMO cancelled for good?

Wed, 03/16/2011 - 11:51 | 1060892 system failure
system failure's picture

The bottom fell out when they announced it in flash crash style, and once TPTB seen the effects, decided they had better coninue or else the true bottom was going to be realized.

 

Hopefully, everyone got a glimpse of just what is destined ahead without QE munipilation, because we got a nice snapshot today.

Wed, 03/16/2011 - 12:00 | 1060991 sbenard
sbenard's picture

But treasuries are rising. This seems to be a reflexive exit from stocks and a run for cover. But eventually, the awakening will come that US gov debt isn't such a good place for safety. Then, look out!

Wed, 03/16/2011 - 12:02 | 1061009 buzzsaw99
buzzsaw99's picture

frost y sack only pomo at prices too high from their friends. in a panic situation their friends can sell at a profit elsewhere.

Wed, 03/16/2011 - 12:04 | 1061016 zebra
zebra's picture

u r crazy.

it's not gonna happen

Wed, 03/16/2011 - 12:58 | 1061484 HedgeFundLIVE
HedgeFundLIVE's picture

 

Markets Will Crack: Why It Is Not Too Late to Short-

 

http://www.hedgefundlive.com/blog/markets-will-crack-why-it-is-not-too-late-to-short

Do NOT follow this link or you will be banned from the site!