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Fed Completes Monetization Of $1.415 Trillion In Treasurys, Morgan Stanley's Prediction Of Issue "In Play" Spot On Again
The Fed completed its last POMO monetization for the week, buying back $1.415 billion in bonds dated 2021 through 2040. Oddly enough, the submitted/accepted ratio was a mere 5.98, after hitting north of 10 for the last three POMO actions since the resumption of QE. Stocks now rolling over as the Fed's liquidity appears to have been digested. More importantly, Morgan Stanley continues to shine in its Fed frontrunning recommendations: the firm predicted 89% of the issues monetized by notional, correctly identifying $1.265 Bn worth of the $1.415 Bn in notional bought back. All who followed Igor Cashyn's advice to Buy the 8.0% of 11/15/2021 and sell the On The Run 10 Year (and seeing how at $1.135 Bn monetized, this was the issue most clearly "in play", quite a few did) should find the Morgan Stanley analyst and buy him a shot of vodka.
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I will gladly buy the MS Analyst a vodka shot, and then kick him out the door, russian style. QE to infinity, comrade Bitchez!
Headline says 1.415 trillion...whew! Well really it wouldnt surprise me. Anyway, DOW red.
I will buy Igor a whole bottle of Grey Goose. Nazdarovya !
In the final battle to find the greatest fool, it appears the FED (and you and I by extension) is the last greatest fool left standing. All hail the ultimate printing press and the ink stained fingers of the master(s) of the universe.
CD / We hope you are well. Few realize today that (as we have repeatedly stated) "...there is no market..." Today, it is about insider trades. There are 10-15 main primary governmental participants, who after receiving allocations or directions from the Fed, reach out to 25-40 more large, major market players. From there, product is dispersed out to the general market in a very defined pecking order (large to small). In these conditions, it remains very difficult to properly manage risk. Thus, the reason the Druckenmiller's and Pelligrini's are liquidating, with more similar fund liquidations forthcoming coming in the next 12-24 months. Good luck our friend.
The Fed is the bad bank of last resort, taking our savings with it when it destroys the dollar. Making US the bad bank of last resort. But we already knew that.
Insurer of last resort - check!
Lender of last resort - check!
House buyer of last resort - check!
Government revenue source of last resort - check!
Inflation creator of last resort - check!
We are the UNLIMITED money PRINTERS and there is nothing we can't do!
Awful lot of trillions in there....billions perhaps?
BN seems so oddly small these days. Btw, what is the properly accepted abbreviation of quadrillion and quintillion? Working on excel macros...
i think it's "f'd" and "2xf'd", but i'm only guessing.
+1000
I recommend scientific notation: one billion = 1e9, one trillion = 1e12, then e15 for next month and e18 for next year.
Q or Quad I believe is for quadrillion (US) and Exa for quintillion
or maybe queef'd?
You call it monetization, but the Fed said that they were using the interest received on the MBS they hold to pay for T-bonds. Are they lying about this? If not, then its not monetization.
It's more than interest. As with any mortgage, principal is also paid down with each payment so the money the Fed is using to purchase Treasuries is the interest and principal payments received from its "investment".
And IMHO regardless of where the secondary source of funds comes from, if it's used to purchase Treasuries of any denomination or duration, it most certainly meets the definition of monetization. In this case, the Fed printed up the original money (call the process anything you wish but they printed it) so unless we agree that money laundering "legalizes" money and thus money received back or earned from the original monetization isn't "dirty" money anymore, the Fed is monetizing.
But I do understand your point. Semantics in my view. You might win the legal battle but lose the money wars. :>
Lets just move on to scientific notation to express the numbers. Maybe some day in the future scientific notion will be relabeled economic notation
$1.415 Trillion USD = $10100100101110100100100101000011000000000 USD in binary
I'm rapidly learning to write in binary as it will soon be the US national language. But how do you speak binary other than doing my best C3P0 imitation?
I'd recommend using binary notation. As the public is literally unable even to count the digits anymore, its a great way to cover the underlying, horrible information...
And imagine what it's going to look like when hyperinflation kicks in!
Cock sukers are devaluing my dollar and the sheeple are cheering.
Wow! 1.4 Billion only buys about 10 minutes of green. Not much bang for the buck. After Sept 1 when the last announced POMO happens methinks I will short the hell out of this market. Just hurry up and fail America..geez. I have been waiting 3 years now....
Boy, $1.4 billion sure doesnt buy what it used to! Only a couple minutes of green? Soon FED will have to start every morning with a few trillion thrown at these bullshit markets just to stay even!
This question asked by the Chairman of the House Financial Services Committee...
Check Youtube for 'Brawl at the FED' video, apparently Jackson Hole isnt all champagne cocktails, young rentboys and fly rods, breaking down into riots between bankster crooks.
when they start squirting eachother with grey poupon and commence the limp wrisited slaps with their white gloves, that's when i'll know they're getting down and dirty.
POMO on 30s! HAHAH yield surpression in high gears
+100 , "....are you going to sit on those positions ?" Ah,yeah ! (Reference to gold price passing 1000).
Tough Policy Changes Coming...
More Fed porn. They will get caught one o' these days and it'll be embarrassing.
Definition of "caught": J6P finally saying, "WTF!"
While I love the image, I'm not sure the words "Fed" and "embarrassment" can ever be joined without hysterical laughter spontaneously breaking out from all quarters.
If they haven't been embarrassed up to now, there's just no hope.
An SNL skit of Ben dressed up like Edgar H. would come pretty close...
JACKSONASSHOLE SUMMIT
http://williambanzai7.blogspot.com/2010/08/world-holds-its-nose.html
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