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Fed Releases Latest QE Lite POMO Schedule: Brian Sack To Monetize A Paltry $14 Billion In Next 30 Days
The latest QE Lite (not QE2.5, not QE3) POMO schedule has been released. The New York Fed will purchase a measly $14 billion (so much for stealth monetization: this is about one-eighth the regular amount of monthly QE2 POMO) over 7 operations between July 15 and August 8. The biggest POMOs will occur on July 27 and August 3 when up to $3.50 billion in 10 and 7 year bonds will be monetized. The reason for the dramatic slowdown in QE Lite activity? The collapse in MBS prepayments, as we have cautioned for months. So much for stealth QE2 as others have claimed. $14 billion in flow (and remember according to the fed only Stock matters, another matter on which it is dead wrong) per month is a total joke - it is barely enough to keep Netflix at 1 million fwd P/E, and is just another reason why QE3 is coming.
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But QE3 is coming isnt it?
So i should just buy buy buy in anticipation no?
Didnt the Bernank promise it?
Infinite profits for the sheeple?
Just lube for QE3.
The silver takedown on that holiday weekend in late May was indicative of QE3 coming. No bones about it. I even posted here claiming such. These idiots at the Fed issuing PR statements about exit strategy is all smoke and mirrors.
They know, I know, most politicians know, we can't turn back. It's going to be QE forever, printing forever, POMO forever, until the dollar dies.
No question about it. No other alternative.
If "exiting" was the policy, why raid silver? Why release SPR oil to the market?
Don't listen to the headlines. Watch the action as it tells the truth.
The other way out is to have the Chinese demand monster go away, how?
Who cares?
I agree that QE is the way forward, but in the interest of prolonging this as long as possible the FED likely will not do it until people beg.
ie "deflation" rearing its head.
yup, another mini crash should do the trick.
in the meantime banks find more ways to take the assets.
banks friend you on facebook, then serve you the foreclosure papers via facebook. judges said it's all aaa-okay. electronic fontier foundation says aaa-okay. never mind that each state has it's own laws on how to serve legal papers. just point and click and your house belongs to the bank.
http://bostonherald.com/business/general/view.bg?articleid=1351465
Banks ‘friend’ people on Facebook, then foreclose on themYet the QE euphoria is played out after 2 failed QE's, its not exactly 2008 anymore. QE now is just for attempted stability of any kind, front run it.
Ben's just letting us know the bazzoka is still loaded and where it's aimed....jawbone
Get back in there and turn those machines on.
http://en.wikipedia.org/wiki/Trading_Places
not printing money tho...
Thank goodness...I was worried Brian Sack might show up in tomorrow's initial jobless claims.
Pretty sure that the Sackmasters days are much more active than this schedule shows. The real trick would be to get the non-published monetization schedule that ole sackies following on a day to day basis. I am pretty sure WB could post one on Zero hedge within a few hours.
What's interesting after looking into the new budget cuts being proposed as part of the debt ceiling show, is that the $2T of proposed cuts are to be spread over 10 years and virtually none of the cuts are to occur in the next few years. So, in other words, planet Washington has once again declared that it is going to fix none of the huge systemic debt problems facing the country. Interesting that in concert the FED is already foreshadowing more QE. You can expect 'increases' in commodity prices to abate below 2% in the next quarter opening the door for the next QE package.
It's into the rocks at speed folks. The gauntlet has been cast.
It's going to be hell of a ride.
Lets see if we can make a ton of cash.
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID3225058&cmd=show[s235939273]&disp=P
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID3225058&cmd=show[s238082247]&disp=P
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID3225058&cmd=show[s238253528]&disp=P
Translation: Blue horseshoe, Sir Lawrence wildman and Dr. Bernanke love NFLX
What are the chances of stocks dipping into the red today before the close?
ZH risk divergence signal at work.
I do love it so...
Sell the f-in rip
Why not just have Bernanke announce QE infinity and that way Bernanke can say I'll have the fed purchase all of the treasuries because it's not really debt anyway. There investments. No really.
Madoff is in jail and Bernanke needs to be told this is where he is headed.
Too bad it will apparently take the complete collapse of the country before anyone is questioned about their insane actions.
Complete collapse? This is looking more and more like an option I am looking forward to.
http://www.zerohedge.com/article/when-you-own-gold-youre-fighting-every-...
by TruthInSunshineon Wed, 06/15/2011 - 12:18
#1371339
Rickards still hasn't told his readers how he arrived at his figures on how much repurchasing of tnotes the Fed can handle assuming a windup of official QE operation is going to happen, or, in other words, how much 'bang' the "maturing assets" on the Fed's existing balance sheet will be able to purchase going forward.
As for gold, he is correct conceptually, but if the situation became so dire that more than 2% of people were openly transacting commerce for everyday goods and services in precious metals, including gold, the government would make doing so a felony; whether such measures would deter such activity, I leave for the individual to use his or her best assessment.
Back to the "rollover of maturing assets on the Fed's balance sheet" issue that Rickards speaks of, and which he claims will allow the Fed to continue significant 'stealth' QE operations, here is what I wrote months ago in response to this claim (which Zero Hedge backed my argument up - The Fed Does Not Need QE3 And Can Fund Debt Monetization Merely From Rolling Debt And MBS Prepayments? Wrong ):
Rickards predicted this.
Here is my question for Jim Rickards and anyone else who claims that by rolling over income on existing assets that they own (MBS and Tnotes), the Fed can do large scale purchases of additional Tnotes for very long -
http://www.zerohedge.com/article/fed-complete-830-million-7-day-reverse-...
Jim does good work, but he is an economist, so he doesn't know anything.
:)
He's an attorney, also; the best of both world's?
I jest...I jest.
I find JR intelligent, but can forgive him for the tragedy of being fallible (aka human).
I increased my position in SPXU today. Market overbought on what...The Fed saying that they MIGHT implement QE3 if conditions worsten?
Same for silver and gold. I'm still stacking, but I sold my miners into this rally. People didn't listen to Bernanke speak. He didn't authorize QE3 TODAY...he said that shit has to get a lot worse before the Fed even CONSIDERS it.
One last time to BTFD.
*cntrl alt del* any matters about conditions having to get a lot worse before any QE is considered, time to knee-jerk and price in QE equity crack party!
the storming of the shrews
the drowning of mice and men
Pigmans Open Market Orgasm
Print Our Moneyz Often
How bad are things going to look fast forward 2015.
It's scary to think what the rest of this decade will bring.
How can he be stopped?
if he is shaven he will lose his power.
After years of POMOing now, does anyone know who are new proud owners of stocks which are POMOed - bought with POMO cash?
Assume small investors and funds sold ... but who are legal POMO entities which stepped in?
FED owns it all now, with no one to sell it to. Therefore going forward their only option is try to keep the bubble they own inflated.
This just won't do. The stock market doesn't love it. It was looking forward to a couple of zillion dollars.
Crackhead equities were expecting at least a couple Zillion free money, if not Quadzillions. $14 billion, sorry we are not impressed.
it's summertime. after making $12MM in the last year, the banksters are off on vacation trying to figure out who are these people who usta be their kids.
slewie recommends going for a bike ride and getting fuked up together down by the creek.
QE Light is not much, but it is enough to hold off them damn BRICs until QE 3 is released to carpet bag the world! The world!
http://www.msnbc.msn.com/id/21134540/vp/43738112#43738112
at the 5 minute mark.. is when the description of America’s Voting Habits is described accurately.
After being long Treasuries for six months, I'm
1. cutting back my postions, raising cash
2. cutting duration, moving into 3 year notes (orignally 10, last month 5)
I'm torn between these opposing forces:
a. Big Risk Of moment hasn't happened yet; when it downs, yields will rip even lower.
b. Treasury prices have run up a lot already, and Bernanke could whip out QE3 sooner than expected.
Equity rally fading...fading...
Brian could do that in 1 afternoon and then have a nice long Summer in the Hamptons. The market will be at 900 when he gets back though if thats what he decides.
Ill pack for you Brian.
BUY BUY BUY
You call this capitalism? Chinese socialists beating communist hating Americans at their own game!
http://www.youtube.com/watch?v=whVf5tuVbus&feature=related
23 Things They Don't Tell You About Capitalism
Just a question to someone who has more government and fed insight than I do.
If the debt limit doesn't get raised, then does that stop the possibility of QE3. Then the only bonds that could be issued would be equial to the amount that were closed out correct. The Fed could still buy these (because honestly we all know they are the only buyer there today anyway), but wouldn't it limit the amount that they could print?