Fed Releases New POMO Schedule: To Monetize Only $97 Billion In Bonds Through May 11

Tyler Durden's picture

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Larry Darrell's picture

"As we had expected, the QE Lite component ($17 billion) is plunging due to a substantial halt in MBS prepays with the Fed."

Tyler, what's it like to live in a permanent state of deja vu as you study data, see things, report them, and then watch them happen?

 

ghostfaceinvestah's picture

Rickards is so off base.  It doesn't matter if the Fed maintains the size of their current balance sheet.  To sustain this charade of a recovery, they need to GROW their balance sheet.  Reinvesting principal paydowns and expiring debt ain't gonna cut it.

They stop growing their balance sheet and the market starts cratering, followed quickly by the real economy.

r101958's picture

Ghost....you are exactly right. Well stated!

sex4king's picture

i dont see how they can possible stop QE2 even for a little while...

NonAggressionPrinciple's picture

Yeah i dont get how they could really believe that ending QE wouldnt result in anything but cratering of all markets and slowdown in the economy.

 

Rickards made sense because he said ending QE was just a diversion and not true which makes sense because you dont want to extend QE and have the US bond and dollar to unravel.

 

But 17 billion isnt enough to substantiate Rickards theory?

 

Anyone with any ideas?

cindycheng's picture

I feel really happy and grateful for providing me with such priceless sound track. All are good here simply best. I want such article again and again.   pellet mills

NOTW777's picture

ben, i swear we dont monetize

Cash_is_Trash's picture

I'm glad the Fed is accountable for their actions...

Even if the metals come down, its still sound money.

The mining shares sure bite when the PM's come down though...

SheepDog-One's picture

Looks like the training wheels will be off the FED retards bicycle pretty soon. Im betting lots of band aids and gauze and splints will be needed.

Cdad's picture

No way Dog.  They'll just need to renegotiate E. Burnett's contract over at the BlowHorn [CNBC] to be on more hours during the day...so that her adorableness gives more buoyancy to the markets.  Simple.

More stories about burritos and leotards!

Triggernometry's picture

Erin Burnett in a leotard.

Mmm, leotard...

plocequ1's picture

This is unacceptable. The owners are displeased. Try again.

treemagnet's picture

Put Niedermeyer on it.  He's a sneaky little shit.

duncecap rack's picture

How much of the $600B left after this?

Mr Lennon Hendrix's picture

Is this a trick question?

I shouldn't snark, but QE to infinity.

Jason T's picture

Tis a deal with the Devil, the Father of Lies.  

Mr Lennon Hendrix's picture

Really light at the back end of the curve, but I guess what they do not monetize, the PDs will just flip back to the Fed.

Hansel's picture

This everything is too stupid for words.

earlthepearl's picture

The non-uniformity of the activity just hints at manipulation doesn't it?
Why are some days 6-8 and others 1.5-2.5, I would like to have this clarified,

Mr Lennon Hendrix's picture

The want the indirects to own as much long term debt as possible.

I Am The Unknown Comic's picture

14.3 trillion feet high and rising

the jobs don't grow

there's nothing to sow

better go and blame it all on the snow

14.3 trillion feet and rising......

How high's the water Papa?

virgilcaine's picture

We are going to see 5% on the Ten Yr US Tsy and Dow 8k in 2011.. 30 Yr Bond Mkt Bull run over.

 

vc

Mr Lennon Hendrix's picture

With inflation raging like a dungeon dragon pensions need Dow equities to stay above 11k.  Bernanke will do everything imaginable to keep the fiat ponzi rolling downhill, even if that means having The President's Working Group on Financial Markets owning every share of equity on market and a lot of corporate debt too, not to mention MBS, T bills, bonds, precious metal short positions, etc.

Cognitive Dissonance's picture

If he purchases my lousy stamp collection I'll get on board.

DUNTHAT's picture

I'm buying Calls on TBT

Any suggestions on the time structure of those calls??

willien1derland's picture

Damn - Perhaps Ben & The Fed are a little fatigued, I mean, when you are so ambitious that you execute the ultimate fraud with zeal attempting to subjegate as many people to poverty as you possible can in the least amount of time, well, that can wear on even the most criminally motivated....I think da Bernank needs to speak with a few Super Market owners  - they can introduce him to "Double Couponing' - Twice the taxpayer losses in half the time - even Adam Smith would admire such efficiency - after he stopped vomitting out of disgust - Ben Bernanke you are inhuman - it is people like you who remind me why liberty requires eternal vigilance!

Coldsun's picture

Funny how they were already wearing helmets, elbow and knee pads before they got near the bike...

kito's picture

dammit!! what the hell does that mean!! please, for the layperson here, in a nutshell, what are the implications of these POMO readings????!!!

JW n FL's picture
Dow
 

   12,263.60
 

   -117.53 (-0.96%) 
 

     Nasdaq
 

   2,744.79
 

   -26.72 (-0.97%)  
 

   S&P
 

   1,314.16
 

   -10.30 (-0.78%)

 

 

Looks like it was priced in.. down 117.53 or almost 1%... POMO we need more POMO or CowBell?? I forget which.
lettuce's picture

guys, the point of this announcement today is that there are only 20bn remaining in the QE2 program after this 80bn is purchased. prepare for QE2 to end on or around may 18.

Strategery's picture

It's over and didn't work: get busy, Ron Paul!

TheGoodDoctor's picture

So, does this mean that the markets rally through 5/12?

thedrickster's picture

That......... would be the relevant question.

Davilis's picture

And in further news, the Federal Reserve, a privately held company with no reserves, declared bankruptcy...

Now THATS monetizing the debt!

aoter's picture

Damn - Perhaps Ben & The Fed are a little fatigued,642-504 test I mean, when you are so ambitious that you execute the ultimate fraud with zeal attempting to subjegate as many people to poverty 642-165 test as you possible can in the least amount of time, well, that can wear on even the most criminally motivated....I think da Bernank needs to speak with a few Super Market owners - they can introduce him to "Double Couponing' 646-364 test - Twice the taxpayer losses in half the time - even Adam Smith would admire such efficiency - after he stopped vomitting out of disgust - Ben Bernanke you are inhuman - it is people like you who remind me why liberty requires eternal vigilance!

jimmight's picture

Finding and shorting Chinese frauds is turning into a nice little cottage industry. Soon everybody is going to be looking for their own.
sscp certification \vmware certification \sun certification \scjp certification \scwcd certification \scbcd certification \scmad certification \scjd certification \

cindycheng's picture

I never read whole articles but the way you wrote this information is simply amazing and this kept my interest in reading and I enjoyed it. I read your post and I found it amazing. Your thought process is wonderful.

Regards,
moulin farine

cindycheng's picture

I will get to know more new information. Even the website layouts and the designs impress me a lot.
oilseed presses