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The Fed's Almost Daily POMO Market Intervention In Progress
Right on schedule, the Fed will put in about $3-4 billion in new indirect Amazon purchase orders via the 18 primary dealers. Vacuum tubes everywhere rejoice. Results at 11:00 unless SkyNet has not taken over the internet by then.
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May the Lock Limit be with you.
Ask myself daily why they do this. I know it's a con and is so obvious but are we as a country this inept to realize what's going on?
As long as we have face book and the biggest loser to keep our fat lazy asses distracted they can do anything.
This.
Tactical Upcoming Election Tactics... and because "they can..."
I ask myself daily why I follow this or care anymore. Oh ya 15 years and all that training. Following what I love doing....all that shit.
Fuck them all for ruining the system.
I understand your point - less years in it myself but i dont ask myself why i care. I care because i seek to understand why, and perhaps one day be different in this field.
The system is ruined, but the system is only as good (read: fucked) as who runs it.
How would anyone know? You don't expect the media to explain or report this do you?
Even the ones who claim to be telling us the truth aren't telling us.
The media, and I mean "all" the media is useless at this point. Except for telling us what they want us to hear, and to keep the divisional talking points flowing.
I don't expect the editorializing of the media ever. But i read what data does come out and I read into The bullshit.
Same reason why Mad Money is still on air after buy recommendations for Bear Sterns and Wachovia.
you need to post teh fed days the day before!!!!!!
bad zero hedge!!!
come on
he did on monday. i think next week its on tues and thurs, but ZH should confirm
google is an amazing tool: http://www.newyorkfed.org/markets/tot_operation_schedule.html
Thats 2 or 3 times a week? WTF
Indeed.
Whatever it takes. Which is why i find it amusing how people in some threads yesterday were bragging about their shorts. Intraday, fine...good for you. Anything overnight is simply asking to get burned.
Gold $1,300! Do I hear $1310? $1310?
Wait until gold is no offer. At the rate they are jamming money into the markets, that day is coming soon.
Then silver will quickly follow.
HERE'S BENNY
http://williambanzai7.blogspot.com/2010/09/debasing.html
That's hilarious.
plus 1298...One of Jack's classics.
The market has promised to check itself into rehab just after this one last hit.....you know...... for old times sake.
Yeah, you know that feeling after your first few sniffs of coke??? yeah we have been sniffing for 2 weeks running now...and the effects are still high.
Wouldnt look forward to the after effects...a vicious spiral to oblivion.
Yeah, the market's got no nose left. They have to pour the shit into it's face with a funnel!
I was thinking more along the lines of injecting heroin in between their toes or even in their eyes. Good veins are so hard to find.
It was Nikki Six who used to do so much coke when he partied he'd get paranoid and hide in his closet and the only thing that would calm him down was heroin. HA.
We've all commented on AAPL's frothiness before now,but why is AMZN now a rocket going to the moon - why AMZN specifically?
So we can claim we've transitted
to a virtual economy as they board
up all the malls and retail storefronts.
It's the "new paradigm" circa 1999
again. Don't look at the falling down
bricks and mortar commercial RE.
because everyone in the world wants to own a major retailer moving into possibly the worst christmas retail season in the last 100 years.
what's the matter with you?
I see a horrible Xmas retail season as being the case when using logic and reason. However, my wife, a manager at the Disney retail stores, has been talking to me about their daily/weekly/monthly sales and they are exceeding past sales pace at an alarming rate. Makes no fucking sense to me at all. How much longer will the American CONsumer keep buying stuffed pieces of shit for their children? Judging by my mother-in-laws purchasing habits and glaring insolvency, this illusion of prosperity can't last too much longer.
Hi Head,
This is something ive noticed as well, regarding the N.A. consumer and their spending habits. AFAIK, those who have money, still spend it just as much and aren't one bit frugal. Kinda like the Citigroup motto, keep dancing until the music starts playing.
Who cares about the millions on food stamps, the unemployed, the poor. People are very egocentric, human nature.
Hard to say if it is egocentric or ignorance or vengeance. Egocentric could be a play here, but I can also see a side of vengeance whereas people are charging it up and worrying about the consequences later. If you are fortunate to have a good job right now and you pull together the path of the federal government, it would make sense to dump your dollars for pretty much anything. Hard to tell, but I would vote for ignorance. Very few are paying attention to anything really, so they don't know.
Saving fiats in the bank is a guaranteed loss of purchasing power. Wall street is a white-shoed con game. Most don't understand comodities or precious metals. Currency markets make no sense to anyone not in the financial world. Where do you go with your money? Pay down debt? Why? Buy shit. Could this be the beginnings of hyperinflation based on the pure ignorance of American boobous?
All high beta techs now a rocket ship up courtesy of the Nazz moving up to the top of the Flash Crash... 2400 here we come. (Then let's see what these S.O.B's pull out of their f-ing hats)
Where else but online can you get sales tax free holidays (until they start 1) reporting or 2) remove the online exclusion).
llllllllllllliiiiiiii"""" -- passing it to you Rag
lol...those durable goods numbers
should have been good for maybe a 25
point Dow bounce. The rest is our
idiot gubbermint and insolvent PDs
at work. 18 times GAAP earnings for
this crap and GDP going down the
toilet.
A market rising sharply on no volume? But this time is different, right?
So at 11:00 when the nitrous runs out, and the traders are sprawled out on the floor surrounded by empty whipping cream cans wearing goofy smiles, is it time to hard short? For a day trade, I am sorely tempted...
Next thing on the Friday Plan is an Gold Price plunge.
1280 or lower.. i guess.
I hope so...
Chart: ES Daily
No more upside from here...buckle up.
http://99ercharts.blogspot.com/2010/09/es-daily.html
It's punishment to all the Mom & Pops for taking their money out of the market. Look what your missing. The last chance to lose your entire retirement in a single flash.
No shit, it's unconscionable to bait people like this over the course of months. I hope my dad is out of this market.
They don't care. Really they don't.
They are made that fat cats get rich off them.
They know better than wall st the real economy. Why would you buy stocks when you can t find work or see real estate crumbling?
Hay...Tyler how do you mathematically and visually model...a DOW/S&P/NASDQ head job...from another dimension...eh. Does it have lips like a hybrid between Mick Jagger and Jolie *whats her skinny boney ass* last name.
Skippy...just asking...on the grog and need mental stimulus, it's a TBTF issue...roflmao...
excuse my ignorance, but what is "ES"?
http://en.wikipedia.org/wiki/E-mini_S%26P
The symbol of the S&P 500 futures. Sometimes there is an added letter at the end, denoting the expiration month traded. So ESZ is December expiration. If a number is added it is the year of expiration. ESZ0 is Dec 2010 expiration.
http://www.quote.com/us/futures/
Did anybody notice end of Q3 coming up next week? Wouldn't fund managers be embellishing their books?
Not to worry. Since everything is
correlated 1:1 now, China and the
Eurozone will end screwing up
Benny and Timmy's grand strategy
anyway. And then there is Israel.
I'm not completely sure what this means. The POMO is when the Fed buys long bonds? Is that right?
The POMO is when the Fed buys Government Bonds from the Primary Dealers who are forced to buy them at every treasury auction. This forced buying ties up a lot of capital and creates and illusion of demand for US Government Debt.
When the Fed buys those bonds off the Primary Dealers they pay the PDs a premium as well. So POMO activity creates a bunch of liquidity which is then injected in S&P mini-futures (ES).
It's all a giant cherade to:
1) Make it seem like people actually want to buy US Government Debt. Basically it allows the Treasury to say the Fed ISN'T the only buyer.
2) Give PDs a free cash injection which they can use however they want although many people think there's a "Gentleman's Agreement" between Ben Bernanke and the PDs to invest at least some of this free money into stocks.
Thanks.
So this is all out in the open? Or we have to infer it?
They will never admit to it. It's a
circle jerk designed to fool the public,
and it does.
In the long run, it doesn't even
work. Witness Japan.
Just so I understand - the PDs buy or have bought the treasuries cheap and then resell them to the fed?
Yeah, same question.
A ZH wiki with explanations of these things would be very useful. Unfortunately, the Wall Street Journal and others aren't exactly open about how the economy really functions.
Mike Maloney just made a good video explaining our monetary system (or lack thereof):
http://www.youtube.com/user/WealthCycles#p/a/u/0/uzef43gdupk
Treasury/Fed feels bad you are a broke
stupid banker and have nothing. They sell you an
empty soda can on credit for 4 cents at auction,
knowing full well you can sell it back to them
a week later at the Fed recycling center for a nickel. You
net a penny, keep a half penny and stick
a half penny into stocks as your end of
the deal. You are now an employed banker.
Correct. The PDs are reselling treasuries directly to the Fed, taking home a nice premium for the effort.
How does the Fed get the money to buy all this debt? They just create it out of thin air. This is the modern version of money printing, instead of paper it's another digit in some ledger. There will never be a failed Treasury auction EVER. This POMO mechanism is essentially designed to prevent Auction failures. All we'll see is the amount of debt picked up by foreigners start to fall, nothing will change. Any default will occur in the US Dollar market when people dump dollars because they realize POMO's are a complete farce.
You forgot the best part. All the biz
channel TV girls then report that the rally
is due to a fine durable goods report.
This gets some poor sad sack thinking
things are getting better and he needs
to get into stocks. So the bankers sells
the sad sack the stock he bought as his end of the
Fed/Treasury deal at an inflated
price. Mission accomplished.
Got it. Thanks.
This sure doesn't sound to me like a stable system.
"We will create inflation" -Ben
The threat of QE2 changes the "Bernanke put" into the Bernanke Short Butterfly Spread: we only lose if the market is unchanged. Otherwise we either create inflation or it already created itself and takes off wild.
You know Its all a gamble when its just a game
you treat it like a capital crime.....
everybodys doing the time
take me down to the paradise city..... GunsNRoses
This market goes from funny to farce today...so we are up 20pts now on the SP and an hour into trading..where do we go from here? 4-5% up day?
blowing it's wad.....
http://montypython.joolsc.net/downloads/sounds/OPERATN.WAV
Anyone hearing stories of panic buying at Costco or gasoline stations? The dollar could easily collapse here; my guess it might take just a few hours or even minutes.
Here comes the gold smack, even as the USD drops. They like to be obvious about it.
Finally able to post.
Thank you zerohedge for your hard work.
Z
This is the equivalent to a company doing a stock buyback. Nice steady bid coming in..................
Here's to POMO! Her name is Vasso Vilegas and she's the hottest thing to hit Greek reality TV. I just heard an interview with her and was mesmorized by her beauty and the fact that a Venezuelan Greek speaks better Greek than most Greeks. She's dating some soccer player from AEK (ok, she's not perfect!). Robo, where are you??? My Greek hormones are on overdrive and I am still buying them dips!!!
I agree with whatever she is saying.
Never to be found on a bad day huh
I think Minute 0:30 is saying: Buy Solars.
resisting temptation...
You know the market is broken when even Harry turns bearish. lol
Days like today are frustrating, but when I look at the Consumer Metrics Institute Daily Growth Index vs GDP, I know that eventually reality will prevail. That is the *only* reading that matters. Last time the reading was this low was August 2008 -- right before the freefall.
I read that Doll from Blackrock said the chance of a recession is only 10%. He forgot to put another zero...
Meanwhile, ECRI declines and points to the sure recession again...
So "Buy Buy Buy"...you fuckers.
Solars baby, buy them while you still can. :)
Do they spoil if you leave them out in the sun?
Floor trader buddy just told me JPM bought 500 of the big S&P futures at 1141.80 and 200 at 41 10 minutes ago. Viva la pomo!
Today's market just goes to show how dumb Al Qaeda was to try and damage Wall St. or D.C. Christ, these guys in NYC and D.C. are their best friends when it comes to taking down our country...
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