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Fed Throws $3 Billion At Market Via Second-To-Last POMO
Today the Fed repurchased $2.949 billion of 7 year bonds via its second to last POMO. There is $2.7 billion of dry powder left: one last arrow in the QE quiver, best used on yet another down day.
Here is the cumulative UST balance: $2.7 billion left. QE2?
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Chump change. Beat this, $4B a day.
http://www.ny.frb.org/markets/mbs/
Gross purchases from October 1 through October 7: $51,840 million
Net purchases from October 1 through October 7: $20,000 million
I liken it to chemotherapy. The Fed trades the banksters cash for poisoned mortgage backed securities and other crap, and hopes the systemic effect of all those toxic assets sickens the dollar just enough to kill the cancer (by creating inflation) without flat lining the entire economy.
There is no way they can shut the printing press off unless ... they stop spending money.
The fact that there are no buyers is not a problem.
Since all currencies are relative ... in the process of devaluing the dollar ... we do so to the world as well.
Dang ... I hope they don't get pissed off.
The end is very fucking nigh.
So what happens when that is done? Has it happened before?
Sincerely,
Still short
Ok ZeroHedge Community, I respect most everyone here. Could you give me feedback to the following which I sent to Rep Grayson and Rep Ron Paul. I am not a redistribute the wealth fan, however in WALL Street this year I have to make an exception. Here is what I sent to Rep Grayson:
Message Text: Mr. Grayson, I have much respect for you and Ron Paul for your efforts on exposing Wall Street Corruption. I emailed Ron Paul a minute ago, and wanted to include you also with a thought. I know Wall Street companies are going to announce RECORD bonuses this year AFTER being BAILED OUT. How about taking that bonus money (hopefully 100%) and putting it to the SERVICEMEN and SEVICEWOMAN mortgages. Wall Street Caused and PROFITTED from their horrible mistakes, please let's reward good people and NOT REWARD corruption. THANKS+1
Why are servicemen/women more deserving than the rest of us? It's an all-volunteer military. I'm a good person too, and I do a lot more for the country than many of the more mundane military job classes who nonetheless qualify as "servicemen." Not a whole lot of the military is personally facing enemy fire any more. Some of them have jobs not far removed from getting paid to play videogames.
I took a mortgage I could afford and have made all the payments on time. I even completed my mortgage application truthfully! Why don't I deserve a bailout? I'm far more worthy than all those NINJAs who probably should be in prison or deported to some place like Guam. Thanks to them, the mortgage-fraud-enabler industry (aka "FIRE") and the banksters, my house is worth less than I paid for it, my cash is worth less in spending power or gold than it was, my stock portfolio is slaughtered, and my country is sliding downhill fast. Bail me out.
No slight to our servicemen/women...I'm a veteran of the first Gulf War....but have to agree with Mad Max's post. Just because they have volunteered to serve, shouldn't make them any more deserving of a bailout than the rest of us.
I especially think the soldiers facing fire, daily patrols in Afghanistan and Iraq deserve special treatment, as well as the ones who have been serverely injured, handicapped. Some jobs are support, logistics in the states, I do feel they should not be the priority.
These soldiers (facing fire) do sacrifice much more than you and I sitting here. We are safer because of them. I am not in the military. It seems they are forgotten or taken for granted by the MSM and citizens in general.
I feel we have a responsibily to help them first. I guess you either feel like this or not.
I am very grateful for the responses. The pay the soldiers receive is horribly small, many take this path because of the high unemployment.
I understand this is a dangereous precedent, I cannot fathom seeing the leeches on Wall Street profitting from the mess they cause. If it cannot be returned to the tax payer (who bailed them out), then let's help those who are most deserving, I think it's the soldiers.
how about returning it to the kids of taxpayers who funded this crap?
"These soldiers (facing fire) do sacrifice much more than you and I sitting here. We are safer because of them. I am not in the military.."
Let me state that I am in no way anti-military. I seriously considered joining the army, and I have numerous relatives who have served. I would like to make some pragmatic comments:
-conditions for front-line troops and the more endangered supply line troops in 'Stan and Iraq do suck. Perhaps a change in the level of combat pay would be a more reasonable and fair approach to this than some byzantine bailout scheme. Also keep in mind that most soldiers get moved around every 2-3 years, generally between communities with a large military presence, so their mortgage situation might be quite different from the rest us.
-Another great thing to do would be shortening their tours of duty!
-While we're at it, why not provide adequate funding and oversight of the VA hospital system?
-How about adequate equipment for the troops, like body armor and armored vehicles? I guess this is mostly taken care of now, but sure wasn't a few years ago.
-Best of all, why not bring them home from W. Bush's fantastic wars of foreign conquest. He gets a special prize for picking the country where empires go to die. Alexander the Great was the last outsider who could make any claim on having conquered that country, and even that didn't hold.
There is also the fundamental issue that excessively glorifying the military tends to be a tool of dictators and tends to result in a totalitarian state. There are a few small exceptions (US propoganda during WW2, maybe) but this is the general rule. It's much better to keep the military small by keeping the need for military force small.
I know the responses are in no way anti-military. My fear is next we would be buying mortgages for public school teachers; then some other special interest category. Paying more and the veteran hospitals are very good suggestions. Bringing them home I agree with, Iraq overwhelmingly does not want us there.
The spending by this government (republicans and democrats) can only end in disaster, either a new currency or purchasing power decline of 50%. Anyway, thanks Mad Max, serendipitous_one, koaj, oso and Anonymous (for the funny picture). I'm sure nothing will come of my email, I did not send money with it.
Let's support our troops by removing them from Iraq and Afghanistan.
Please don't tell me about fighting those big bad terrorists over there so we don't fight them over here. This is bullshit propaganda. These wars are wars of empire and imperialism. We want to control that part of the world. Thus we fight wars there.
Bring the troops home.
Army - so easy a caveman could do it.
http://www.navycs.com/gallery2/v/useful_images/photos/armysoeasy.jpg.html
excellent idea because i know the wall street conservatives in NYC would never want to be seen as not supporting our men and women in uniform...and yes extend the program to all veterans
ps all exxon mobil oil profits from oil procured from iraq should also be devoted to veterans
2nd last POMO...right! My A$$!
2nd to last?
lets not count our chickens...
Ya mean penultimate?
From Wiki..
The related words penultimate and antepenultimate refer to the second-to-last and the third-to-last item in a series, respectively.
Just showin that we too can obfuscate the simpler things ;-)
Anyone who thinks this is the last POMO better think again
Within 3 months the next 500B will be allocated
Within 3 months the next 500B will be allocated
I'm guessing your timing might be a bit early but we will need Rahm Emanuel to clear that up depending how he sees the mid terms unfolding.
Though it is said that only a fool can make market calls, I'll take that risk and say this: do not even think of shorting the u.s. equity markets next september, october, and early november. don't.even.think.about.it.
+1
ghost beat me to it.....
Considering the amount still thrown at the MBS market you also need to consider that the QE "policy" is what is reported. They have bought MUCH more than they report...bet on it.
MS
i wonder if the spy shares held at stt are considered off balance sheet?
One more POMO then the market needs its annual October "rest".
It'll make sure there won't be a big coupon spike.
Rinse.
Repeat.
Just like last year.
BB
Once the S&P drops below 900 another round of QE will be announced which should probably be right around the end of this year or early next yr. Do you really think Ben Bernanke is going to say no to these thugs on wall street?
I know that to be a trick question, but I'm going to answer....Ben won't say no to the thugs.
Am I right? Am I?
Sorry George, Ben is a thug!
Ben is the thug, why didn't I answer, Ben is the thug. Ask me again?