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Frontrunning Today's Monetization Of Just Issued 2 Year Bonds
Readers know our fascination with pointing out the relentless "flip that bond" game that the FRBNY's team of Sack Frost and the 18 Primary Dealers enjoy playing with each other, which just happens to be funded to the tune of millions of dollars each day when there is a POMO (which would be everyday). Two days ago we pointed out the most blatant case of documented taxpayer rape to date, when Brian Sack monetized 71% the just issued 2.125% of 12/15, even though it was not anywhere among the 10 cheapest bonds. We had nothing to add to that - at this point only Congress, and perhaps Rand Paul, can do something about this shovelling of taxpayer money into the banker hole on a recurring daily basis. All we can do is continue to monitor. Which is why we present today's cheapest bonds that the Fed should be buying. These are the bonds that the Fed should be buying as they represent the best IRR to taxpayers. This is at least the theory. What will happen, is Sack Frost will instead most likely end up buying either the PW4s issued in December: the 0.625% of 12/31, or and this would be just stunningly daring, the PR5: the 0.5% of 1/13, auctioned off two days ago, which has not even settled yet.
We can't wait until 11 am to see just how daring the Fed's criminal syndicate can get.
The cheapest bonds are in the box on the right. None of them are either the PW4 or, obviously, the non-settled PR5.
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Tyler, you should be sending this data to Ron Paul's staff...I think it might pique their interest.
If I were less libertarian and more bad ass, how easy it would be to have the
Bernank snuffed out. Then again, what would be the point? MBA programs keep churning them out like al qaeda training camps.
- Ron
Here is a song for today's equities:
http://www.youtube.com/watch?v=WcZrTQr-F7U
"Everything's Gone Green"
Help me, somebody help me
I wonder where I am
I see my future before me
I'll hurt you when I can
It seems like I've been here before
Confusion sprung up from devotion
A halo that covers my eyes
It sprung from this first estrangement
No one have I ever despised
Is this the way that you wanted to pay
Won't you show me, please show me the way
Is this the way that you wanted to pay
Won't you show me, please show me the way
Someone should definitely send them this stuff. You know the Ron Paul supporters could make it viral over the internet
The headlines on yahoo finance tell it all: 1) claims surge 2) caterpillar profits quadruple. so someone's economy is booming but it isn't ours. I don't know what you do if you are the policymakers. I hate all the stimulus and market manipulation but the economy is anemic
Cat had booming numbers .... noooooooooooooooooooooooooooooo , really ?
You guys like stories like these from BBC:
More than a quarter of shoplifters arrested in Japan in 2010 were over the age of 65, police have said, as the number of pensioners committing the crime hit a record high.
In an annual report, the National Police Agency said 27,362 pensioners were arrested for shoplifting in 2010 - almost equalling teenagers.
Most of them stole food or clothes rather than luxury items, the NPA said.
Japanese society is ageing rapidly and its economy remains stalled.
More than 20% of the population are now over the age of 65 - a figure which is expected to rise to about 40% by 2050.
A police official told the Mainichi newspaper that pensioners were shoplifting not just for financial reasons "but also out of a sense of isolation peculiar to the age".
In recent decades the traditional three-generation household structure has changed - more young people have moved to cities to find employment, leaving elderly parents on their own.
Pensioners who want to work have also found it harder to find jobs because of the economic crunch.
Police say the record high - with pensioners comprising 26.1% of all shoplifters - represents a persistent trend.
When record keeping began in 1986, the number of pensioners arrested stood at 4,918. It has climbed since then, hitting 10,000 in 1999 and 20,000 in 2004.
"Sack Frost" lol
2 things: 1. The fed/gov will do everything in their power to keep the equity markets from sinking. Why? Because everyone---EVERYONE---looks at the DOW and NASDAQ and SP before doing anything else. It is the #1 "indicator", for the entire nations, with regard to the economic (and social, and political) health of the country. AND OF COURSE WE KNOW WHAT IS GOING ON. But tell me: even though you know that the DOW is a totally tweaked market, don't you still check the index obsessively? When the markets go down, doesn't it change your heart rate and your "voice"? The government knows this. They KNOW that a DOW in the green means calm in America.
2. POMO is a dance. The operational reality is that the fed/gov could inject liquidity into the equity markets anytime they wants---it's simply a matter of turning on a few computers and changing the numbers in certain accounts. We see POMO and Open Market Ops and the whole bond-dance as a necessity...but it is only a normative necessity. Just as singing the national anthem before every professional sporting event is a normative necessity. The game would go on, if one day we stopped singing the national anthem. The song has nothing to do with the game.
The song is the game. That song is TBTF. POMO is just the latest stanza after TARP, HAMP, QE x.whatever. The game is to fatten the TBTF's to the point that they will still be standing after the inevitable smackdown that is coming. Once fat enough they will happily let the market crash and pick up the pieces for pennies on the dollar. Oceania is upon us.
I prefer Frosty Sack over Sack Frost.
Tyler, is there nothing that anybody can do about this fraud.
How about a class action suing the Fed. If nothing else, at least we will draw attention of this rape of the people and maybe get the populace fired up enough to stop this madman from destroying all to save a few of his banker wankers.
But to heck w/economics...this is the BEST:
http://www.koco.com/money/26631329/detail.html
Yes we can!
Can someone explain what is occurring here? I understand the taxpayer is being short-changed but how exactly is this being done? Can anyone refer me to a previous, more in-depth article written on this? Thanks.
http://www.zerohedge.com/article/xtranormal-cartoon-explains-pomo
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well....firstly, they got this new anal lube over at the Fed...
They must have to settle before the fed buys them because the PR5 isn't even on the list today.