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Fed Puts In $1.35 Billion In New Liquidity To Briefly Spike Stocks, Morgan Stanley Predicts 6 Out Of 8 Repurchased Cusips
Those puzzled by the recent pick up in stocks need not be puzzled much longer: today's POMO operation just closed, and the Fed just monetized $1.35 billion of bonds, an amount which apparently was enough to push stocks by about 0.5% higher, and see a slight sell off in Bonds as holders sold into the Fed's buyback. The submited to accepted ratio was a solid 12.8. Far more relevantly, Morgan Stanley continues to be on a roll in predicting precisely which bonds the Fed will monetize: today, Igor Cashyn got 6 out of the 8 repurchased issues correct. Frontrunning the Fed continues to be the most profitable trade.
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Have I got a deal for Ben.
"Predicted 6 out of 8 CUSIPS"
Predicted?
Predicted?
Really?
Stochastic, Gaussian or Fractal Based?
Guessed?
Push pin and Darts?
Jarts!
And it all happened when nobody was looking. I wasn't there, nobody saw me, I was in the john pooping.
Happy as a Bishop in Boy's Town.
They should at least have to actually PRINT all those bucks before they start wiring them around to their friends, that would slow them down. And not print that paper on one side only, to save ink, like Weimar Republic did.
No problem. They could start with the $10,000 Reagan. The 100,000 GHW bush, the million dollar Clinton, the 10 million W and the 100 million Barry.
"A billion Barry's, please."
Ha a nice ring to it, no?
0.5% seems like a low impact for $1.35 billion plus leverage. Someone used POMO to dump shares to banks with fresh Fed bucks.
Afternoon selloff today? We might see a -3% day.
When Da Fed is the only one left in the market it doesn't take much to move the indices any which way they want.
Sooner or later, even the FED's railroad tanker cars of lighter fuel won't be enough. The last step at that point is self immolation.
FED barbecue bitchez.
Yep - but not today. Evidently.
"The last step at that point is self immolation."
Then will Bernank-ster and Krugman leave us in peace?
After the BBQ, will Bennie and Paulie dejectedly slink back to academics at their brain brilliant economics department Alma mater Princeton?
Cheaters
From their point of view, it ain't cheating when you make the rules and you know what's best for the plebs. Let everyone else eat cake.
Unemployment for those making $150,000 per year and up is 3%. Brings a different perspective to the world when you don't see any problems in your peer group.
Problems? I don't see no stinking problems.
Ben needs an introduction to Marie (Antoinette).
"Initially charmed by her personality and beauty, the French people generally came to dislike her, accusing "the Austrian" of being profligate, promiscuous, and harboring sympathies for France's enemies." http://en.wikipedia.org/wiki/Marie_Antoinette
Initially charmed by his "knowledge and deep studies" of the Great Depression, the American Sheeple eventually came to dislike him, accusing the "Keynesian" of being unduly forgiving of gambling banksters, an asset inflationist, and harboring contempt for the "Financial Economy's" enemies.
He sure seems to pretend to know what appropriate Bond prices should be...
i call them Ignorati
I won't be happy until we hit 9XXX today. But we'll rally tomorrow.
Puke and rally bitches.
Is it bad I want to see the stock market crash?
Not at all. I'm rooting for a meltdown as well. I want the central bank elitists to get kicked right in the fucking throat.
This is loonacy, madness, they have fucked up our markets.
PPT is on scene, DOW 10k will be defended tooth & nail bitchez!
at 10:00am today, the first words out of my mouth were "Bullshit!! This muffugga should be tanking? wtf just happened?".. I used to feel guilty about wanting this shit to go down in flames like it was some horrid wish that the American economy and thus America would cease to exist. Now it's more like "Uncle Sam can't keep his mouth pursed, and finger over his lips to keep the vomit from coming out, because if he keeps doing that, he's going to have to swallow it and that'll surely kill him". Better to puke it up and let it go so we can get on to a real recovery. I'm almost saying that wishing for this market to continue on like this is the polar opposite of wanting success.
Time for America to stick its finger down its throat and puke up all the crap. I have better things to tend to, like actually trying to make a life for my family which is increasingly more difficult given what's going on in the economy.
I'd rather not have the punch to the balls later.. I'll take the gut shot now, please..
I love your description. It fits perfectly into what I believe too. I wish the markets would FLUSH THE SH-T already!
I get increasingly angry because I know how much worse it's going to be in the end. I'd rather face it now while there are still resources available. Putting this off is futile.
So maybe this is what they want, severe stress to cull the herd. But not before the last portable (and not so portable) assets have been carted off and appropriated by the stronger from the weaker. After all, most of us are just useless eaters, right?
Don't disregard the mindset of someone who thinks along those lines. And consider what those who possess that mindset are capable of when considering outcomes. If the cost to maintain the slave exceeds the slaves output, the business decision is clear and alternatives considered regarding how to deal with the (useless eater) issue narrows to just a few, none of them pleasant for the non-productive useless eater.
Expand your mind or contract your waistband.
You may be right CD, but never rule out ego.... especially when it comes to the elite. In his mind, he MUST make his thesis work. His entire credibility is built on it. I believe he really does think he can pull the ship out of the vortex. What he needs to realize is that the size of the liabilities is far too great. He watches the front but is ignoring the back. We are degrading our credit further and further. The world is not stupid, they see it already.
Not sure if we are talking about the same thing here.
I was saying "they" intend for the system to self destruct. And regardless of how much you and I are aware of the game, when we're hungry and stressed, the vast majority of us will go where we are led. Which I contend is the slaughter house, where all useless eaters are sent.
This process will end when it has exhausted itself, not from some uprising. Unless, and I'm being sincere here, unless there is a rise of consciousness and awareness in the general population. And maybe I'm simply practicing wishful thinking or looking to satisfy my need for confirmation bias but I'm seeing signs of precisely that, a growing fundamental awareness everywhere. Yes, it's slow and yes it might still take a great deal of pain before it blooms. But from where I sit, it's coming.
Sorry, I focused on Helicopter Ben and the fact he will drive us to that exhausted state you just referenced due to his ego. However, I hope you are right about the rise of awareness. I'm growing weary of this delay of the inevitable by TPTB. Many are hurting, some of those hurts are already realized (no home, no job, no food) some are unrealized (household net worth, no college money for the kids, no inheritance to pass on to keep your family social status). These bastards act as though they have our best interests at heart while they continue to destroy the middle class.
Nah . . . sooner or later, folks will notice that everything around them in their daily lives is, and has been falling apart and collapsing, and the stock market won't matter much anymore.
Is it bad to want it land on red after you placed your hondo on red?
Is it bad I want to see the stock market crash?
The real question is whether it's bad to be contrary to the herd. Since we are by nature (and I contend by training/conditioning) a herding animal, it's emotionally painful to go against the flow. In this case, against the flow is expecting, no hoping, the markets drops to validate your contrary position. By doing so, you will eventually be leading the herd and thus back where you really want to be, within the herd but at a higher status.
UNCLE SCAM
Bring on the hyperinflation!
As my theory goes: Rehab first. Party hard second.
It is as if I see the day when the Bond Vigilantes will take pleasure in monetizing the asses of those in charge of the Fed. Hashish bitchez!
Mark if ur reading this. I just shit a squirrel and I made fart noises with my mouf.
Due to Fed Mentat training:
"It is by Ben alone I set my money in motion. It is by the juice of the Fed that money acquires speed, the balance sheets acquire stains, the stains become a warning. It is by Ben alone I set my money in motion."
With apologies to Frank Herbert.
Utter bull shit. Lets monetize debt and buy the S&P with the cash. They are trhowing the kitchen sink at trying to keep this market propped up. Madness.
Oh, right, now the markets are only down 0.6%. The news weren't really that bad.
It looks as if they put a ruler down, drew a line from 10k at 10am to 10.2k at 1pm, and is sticking to it.
And with Gold, the drew the line at 1235. "NONE SHALL PASS".
Manipulation. It's so blatant.
...and housing stocks (kbh, tol, phm) are up on the day?!?!?
Yeah, it's great news for the house construction industry that old houses don't sell. That obviously means that consumers are looking for new houses rather than old.
its called con man amerika.
They continue to defend technical points in the indices. This time its 1050 on the S&P. I'd expect they'll keep doing this to prevent a freefall in the markets until it doesn't work anymore at which point they'll unleash another monetary bomb.
Even then without a corresponding fiscal response I doubt QEII will be as effective as the first.
It'll be as effective as my Viagra is when I have whiskey d***. I still won't be able to "win".
Updated S&P500 chart showing head and shoulders with target.
http://stockmarket618.wordpress.com
You clearly have no clue about what the Fed is doing.. There is no "new" liquidity being added to the system.. Merely mortgage coupons and principal paydowns being recycled into Treasurys..
Thanks for such a great post and the review, I am totally impressed! Keep stuff like this coming!...
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