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Meet The Fed's POMO Desk... Which Doesn't Even Have Bloomberg Terminals
Over one year after Zero Hedge made POMO, and the Fed's open market operations group a household name, and Brian Sack a household curse, the NYT has finally decided to write an expose on the people who are charged with enforcing America's transition to central planning. And they just happen to be the grizzled 40 year old Mr. Sack, a 34 year old supervisor, two 29-year olds and a 26 year old ... who goes to NYU. Yes, ladies and gentlemen, these are the people who are gifting billions in commissions to the Primary Dealers on a daily basis. You see, the FRBNY whiz-kids have a "computer algorithm that works out which [offers] to [lift]. The computer compares
the offers from Wall Street against market prices and the Fed’s own
calculation of what constitutes a “fair value” price." In other words, taxpayers are getting raped during each and every single POMO but that's ok - the Fed's algorithm, probably created by yet another ex-Goldmanite, determines that said raping is "fair" and with absolutely no transparency anywhere in the process, except of course the Fed telegraphing in advance what bonds will be monetized, there is no way to ever check... Because that kind of mutually assured destructive disclosure would mean the financial world would promptly implode in a case study of total protonic reversal. After all, only smart people (and we are talking Wall Street smart) can handle the responsible truth... of daily Primary Dealer Subsidies.
Behold what the nerve center of 21st century central planning looks like. Note the abundance of Bloombergs:
Blake Gwinn, left, and James White in the operations room at the Federal Reserve Bank of New York.
As for the lovely pre-cleared narrative of how a few people run the world on behalf of Wall Street, pardon, revive the economy, here is the spin, courtesy of the NYT's Graham Bowley.
In a spare, government-issue office in Lower Manhattan, behind a bank of cubicles and a scruffy copy machine, Josh Frost and a band of market specialists are making the Fed’s ultimate Wall Street trade. They are buying hundreds of billions of dollars of United States Treasury securities on the open market in a controversial attempt to keep interest rates low and, in the process, revive the economy.
To critics, it is a Hail Mary play — an admission that the economy’s persistent weakness has all but exhausted the central bank’s powers and tested the limits of its policy making. Around the world, some warn the unusual strategy will weaken the dollar and lead to crippling inflation.
But inside the Operations Room, on the ninth floor of the New York Fed’s fortresslike headquarters, there is no time for second-guessing. Here the second round of what is known as quantitative easing — QE2, as it is called on Wall Street — is being put into practice almost daily by the central bank’s powerful New York arm.
What exactly is the Operations Room task? Why to gift huge bid/ask spreads to the Primary Dealers of course, making sure that bonuses of traders in the govvie desks of the PD crew are well padded, and those same people continue to cooperate in the pumping of the ponzy pyramid. But in NYT speak, this is known as getting the "best possible price" - too bad this is the best possible price for Goldman, not for Joe Sixpack, who is unaware that the bent over Vaseline treatment proceeds daily with every single POMO, which directly funnels tens if not hundreds of millions of dollars to the Primary Dealers (we don't know - you see the Fed does not disclose the asking prices that ultimately are lifted, contrary to what the NYT will have you believe.
Each morning Mr. Frost and his team face a formidable task: they must try to buy Treasuries at the best possible price from the savviest bond traders in the business.
The smallest miscalculation, a few one-hundredths of a percentage point here or there, could unsettle the markets and cost taxpayers dearly. It could also embolden critics at home and abroad who say QE2 represents a dangerous expansion of the Fed’s role in the markets.
“We are looking to get the best price we can for the taxpayer,” said Mr. Frost, a buttoned-down 34-year-old in a striped suit and rimless glasses.
Unfortunately, the best price for the taxpayer is one which results in billions in commissions to Primary Dealers at the end of any given QE program (and there will be many after the current one is done).
Louis V. Crandall, the chief economist at the research firm Wrightson ICAP, said Wall Street bond traders were driving hard bargains. The Fed has tipped its hand by laying out which Treasuries it intends to buy and when, giving the bond houses an edge.
“A buyer of $100 billion a month is always going to be paying top prices,” Mr. Crandall said of the Fed. “You can’t be a known buyer of $100 billion a month and get a good price.”
Nevertheless, Mr. Frost and his team have been praised on Wall Street for creating a simple, transparent program. Neither the Fed nor Wall Street want any surprises. The central bank is even disclosing the prices at which it buys.
Mr. Frost and his team work out of a small, beige corner office with arched windows that used to be a library. There, at about 10:15 most workday mornings, one of them pushes a button on a computer. Across Wall Street, three musical notes — an F, an E and a D — sound on trading terminals, alerting traders that the Fed is in the market.
On one recent Tuesday morning, what Mr. Frost and his five young colleagues did over a 45-minute period might have unsettled even a seasoned Wall Street hand: they bought $7.8 billion of Treasuries.
As for the actual people who push the buttons to see of this symphony of taxpayer rape, meet 26 year old Tiffany Wilding (who will graduated from NYU in 2013), 29 year old Blake Gwinn and 29 year old James White. These are the people who every day (and in some cases twice daily) proceed to monetize billions in bonds.
The real work is done by three traders who are referred to during the operation as trader one, trader two and trader three. They sit at a long table against the wall, tapping at seven screens.
On one recent morning, trader one was Tiffany Wilding, 26. While she reviewed the stream of offers and then the prices finally accepted by the algorithm, trader two, Blake Gwinn, 29, double-checked her decisions and trader three, James White, 29, made a duplicate of everything in case the computers crashed.
All the while, Mr. Frost stood behind his colleagues, ready to intervene — and even cancel the Fed’s purchases — at any sign of trouble.
Too bad the only sign of trouble is if the Primary Dealers are not extracting their daily allotted ten/hundred million pounds of flesh.
And between the talented Mr. Sack, and the NYU students who actually execute the billions in dollars, there is the mysterious Mr. Frost:
Mr. Frost — a Rutgers math grad who has worked at the Fed for 12 years, lives in the Borough Hall area of Brooklyn and takes the subway each day to work — is fairly well known within the dealer community. He and his team talk to the big banks most days.
The job carries great responsibility and is prominent within the Fed.
So prominent and so responsible... yet his entire QE2 operation has been an abysmal failure - note the rates on the 10 Year today, and 2 months ago when QE2 started. Oops...
Mr. Frost, and his boss, Brian P. Sack, insist the program has succeeded. Mr. Sack, 40, joined the Fed 18 months ago to run the entire markets group. He has a Ph.D. from M.I.T. and worked most recently for a Washington consulting firm. In 2004, he wrote a paper with Ben S. Bernanke, the future chairman of the Federal Reserve, and another economist about unconventional measures for stimulating the economy in extraordinary times — just like large-scale purchases of Treasuries.
“We didn’t know then that the Fed would be putting it to the test,” he said.
He said the Obama administration’s $858 billion tax compromise with Congressional Republicans in December complicated the macroeconomic picture.
But the biggest reason for the rise in interest rates was probably that the economy was, at last, growing faster. And that’s good news.
“Rates have risen for the reasons we were hoping for: investors are more optimistic about the recovery,” said Mr. Sack. “It is a good sign.”
And there you have it: to "prominent and respected" puppets within the Fed, evidence of the the adverse outcome is proof that the desired outcome has been achieved.
With lunatics such as this who needs Kool Aid... and who cares if teenagers with a penchant for Jersey Shore push the "Buy" buttons (also known as Any Key) at the heart of US central planning. After all it is more than clear by now that even Snooki knows to BTFD.
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Looks like Winthorpe and Mortimore are reading Zero Hedge.
lol. +1
So , ..... what's this Margarattaville worth ?
60 trillion..
Poofters - all of them.
Nancy Boys
Homosexuals.
Flubbery lipped, small dicked, limped wristed, fudge packers.
Rulers of the Universe, I think not.
Their hands not soiled by hard work, their minds twisted by what they have been told but not thought through. Working brain cells of a smashed Crab.
Our future? - Fuck that - the unwind (fat tail) is going to stain shit to their underpants.
And is that bald eagle giving me the "Bird"
(maybe that poof is giving the World the Bird)
http://www.youtube.com/watch?v=2WNrx2jq184
Guys, and this is not rocket science:
That is the whole point of QE2, to raise long-term rates. That pushes the yield curve and artificially lowers the short-term rates. (It creates an effective negative interest rate for the shortest bonds.)
You cannot pretend that QE is a "failure" when the whole goal of the thing is to increase long-term rates and to inject inflation (== growth) into the picture again.
Yes, the exit path will be a problem of course, but you guys dont even understand the very first step involved ...
QE will be a failure if deflation takes hold again, if the yield curve flattens again, if the long-term prospects of real growh in the US will be more and more remote.
As Tyler himself said it in the article the exact opposite is happening right now so how can you possibly call it a "failure" with functioning brain cells and with a straight face??
Too much right-wing kool-aid perhaps? "It's the Obama administration hence every measure is a failure, regardless of actual results - q.e.d."
I must admit I'm stunned - and that's hard to accomplish.
You come on this board spewing forth your observations & opinions, knowing full well this place is infested with some of the most knowledgeable political & financial operatives & observers, and then you proceed to category declare that:
Wow. {Shaking head.} Well, anyway, thanx for that tidbit. I'll keep it in mind the next time I skip one of your comments.
And, oh, by the way, inflation is the net increase in total credit/money aggregates, not an increase in prices and/or interest rates.
The real point of QE, in conjunction with manipulated gov't stats, a full court press by state-run propaganda, some bread (SNAP, UI, etc) to keep the prols off the street, and some circii (mortgage forbearance courtesy Fan/Fred) to keep them buying, is to restore CONFIDENCE.
That is, to get the sheep once again initiating debt. 'Cause, just like heroin, there's nothing quite like millions/billions of individuals mainlining credit to jump start a dead economy.
well said. This is a debt based economy based upon a historically unique and soon extinct world of never ending and ever expanding energy and raw resource. It is the only economic world they know. And its going to end soon.
Long-term inflation expectations are equivalent to the size of money aggregates in a ZIRP environment only in some tortured monetarist faction's drug-enhanced visions about how modern economies work :-)
That's the main problem of ZIRP traps: the money aggregates stop conveying the Fed's interest rate parameter to the rest of the economy and the Fed is unable to ease efficiently.
There's even historic precedent for that: in the late 90s Japan tried a money-aggregate only intervention and failed to get out of its deflationary trap. It had a (drastically) balooned money aggregate but inflation remained below zero for more than a decade and that trend is continuing as we speak. Against the doomsday "hyperinflation!!!" prediction of monetarists back in those days.
Inflation expectations are what foreshadow growth and it's difficult to measure but there's a strong correlation of most metrics to long-term yields. The Fed does not control long-term rates, it can only "hope" that its signals about inflation will trickle down to the tail end of the yield curve. Failing that it can try direct market intervention to influence the yield curve.
In the period before QE2 the 10Y yield was dropping like a stone, as disinflation went on and deflation expectations got hard-coded in the economy gradually. We actually had the lowest core CPI reading on record, since 1957 - so serious was the situation.
Since QE2 long-term rates/yields have been raising steadily. That is generally seen by the market as a sign of raising growth expecations by various economic players (companies moving from bonds into investments, etc.) and the equities markets seem to show this shift in expectations as well.
Now if you were interested in an informed discussion you might validly question the link of causality during an intervention, but instead you are spewing out paranoid nonsense about some grand conspiracy of the Fed and the evil guvnmint trying to rip off people.
You need to grow up and you need to read more stuff written by people who disagree with you. That way you will at least get their goals and expectations right.
This is probably not fair, but Tiffany Wilding looks like a grocery store clerk. Clean up in treasuries in isle 3.
I'd hit it.
But, she's not an Ivy Leaguer, so you have to wonder if her tramp stamp says Patsy, or Scapegoat.
Trained by
DePauw University.
Thats so Comforting - don't you think?
On August 2, 2010, Princeton Reviewranked DePauw as the #10 party school in the US for the 2010-2011 school year, which includes all colleges and universities.
So maybe she has talents that are not immediately obvious.
And somebody dropped a bucket of gold paint the the FED paintshop on the floor. Please clean it up before "inspections" arrive.
The signal for Wall Street's dogs to begin drooling.
Ok, I admit it, I clicked on her name to see if she was hot. Didn't see any pics though when I did.
More like Beavis and Butt-head discovered a computer.
I'm putting this here so it's up top -
EVERYONE:
This article really gets better. There is a 'flowchart' that shows how QE (POMO) works, and it says, and I quote, under step 1:
"The Federal Reserve creates money and credits it to its own account."
http://graphics8.nytimes.com/images/2011/01/11/business/11fed-gfx/11fed-...
But....but....I thought Bernake told Scott Pelley on '60 Minutes' that "the Federal Reserve is not printing money?"
They're just pulling it, wholecloth, out of thin air or their assholes.
And Bernanke is yet again proven to be one of the worst liars....ever.
Well technically they aren't printing it. They are just creating it and storing it in computers. They don't want to buy HP ink cartridges because that goes to pay for nefarious things.
Aha!
Bernanke isn't physically printing money.
He's keystroking it, binary style.
He's so clever.
Bill Clinton's "definition of is is" has got nothing on The Berbankster.
I did not have inflations with that woman.
That's not my commission on her blue dress.
Did the...uhmmm....soiled blue dress ever really exist, or was it a ploy to get Clinton to admit the deed was done?
It depends on what your definition of 'exist' is.
They are exchanging Sex flicks with the SEC on a peer to peer platform.
“Rates have risen for the reasons we were hoping for: investors are more optimistic about the recovery,” said Mr. Sack. “It is a good sign.”
I call Bullshit!
The truth shall set ye free...
The reason rates are rising is excessive monetary stimulus created via the ongoing QE programs resulting in unparalleled record levels of net free reserves in the baking system.
Which (and somewhat over simplistically) if not removed, which will be nigh politically impossible, when velocity increases, which it ultimately shall, will result in inflationary pressures unseen in modern times.
To whit, the recent disparate performance of standard fixed coupon obligations and TIPS.
That's the reason rates are rising at the moment, goosed along by false impressions of an organic, self-sustainable recovery taking hold.
Yep.
Also, this is directed at you Tyler, there is a very good reason why the Fed is leaving so much cash on the PD's tables: P/E valuations would get really out of whack if POMO operations kept lifting prices without concomitant earnings increases. (At least in certain sectors.)
Imagine for a moment if the PD's margins were getting hammered. Lower earnings combined with artificial POMO prices would begin to make the markets look overvalued. This way, price/earnings seem to increase in parallel.
Not meant for your consumption, distribution, or publication.
The Israel Project's 2009 Global Language Dictionary
http://www.docstoc.com/docs/8303274/The-Israel-Projects-2009-Global-Language-Dictionary
no wonder they don't have Bloomberg....they usually look at porn...do some bond buying and that is it...it is because of cost cutting...hm,recession?
What's that in the back, an old white Dell Optiplex from 1998? The whole setup looks ghetto.
JT Marlin HFT server.
that's the funniest shit I have read in a while, thank you.
At least I don't see any CRT displays. But dang, those LCD monitors are THICK! So 2008! 640 x 480? Can't even watch porn on them things - oh... that was the SEC who did that.
You'd think that when you're conjuring money out of thin air everyday, you'd have a better setup:
http://www.godwinsq8.com/wp-content/uploads/2010/04/Lego-06.png
The banality of evil.
Why would they need Bloomberg Terminals. Godman Shafts and Co. never have a bad month. They manipulate and decide all. They just short what's over bought and go long and push up what is under bought. Rinse and Repeat.
http://www.hulu.com/watch/1389/saturday-night-live-dont-buy-stuff
Nope...that's an Xbox 360. After all, what else are they going to do from 11:15 till end of day?
You ask too much. Just ask the SEC what they do on their computers all day....
Dell Optiplex with floppy drive!
From Ghetto to Banking Cartel. Simple semantic word play meaning legalized financial rape.
Same Federal Reserve staff are members of this Ipad concert band.
When do they have time to practice?
http://goodthoughtsgoodwordsgooddeeds.blogspot.com/
AT 286/370, bitchez!
(370 Cobol compiler disks available on request. Don't think SAFECO ever noticed I downloaded them. Hell, they never knew what a 286/370 was capable of, back then.)
Don't laugh - a good programmer writing with MASM and C on a DOS platform could do more with a 286 than most PCs can do today owing to all the bloatware they ship with.
NERDS!!! http://www.youtube.com/watch?v=gZEdDMQZaCU
I ain't laughing. Didn't even need MASM (there was no C back in my time) to violate every security doctrine they had. A 4361 on hand helped. I figure they went TU because I quit, and they were then dependent on the clods in the 'systems dept'.
I may have stayed at 4x my salary, but maybe not. Been retired since.
18 yrs ago....at 39
Min SS quarters and a pittance into Medicare, keep working, you wage slaves!
You mean real 360 / 370 Cobol on a Windows PC? How nostalgic that would be.
Typing turned out to be the most useful course in high school, especially when coding Cobol. Still remember the tinny clack of those IBM (3270?) terminal keys ...and we could adjust the "clack" intensity :)
Even more disappointing than the wizard of oz
That's a horse of a different color.
Indeed, I liked it better when they were faceless quasi-bureaucrats.
at least their hot air balloon is bigger
Even more disappointing than the wizard of oz
ROTFL
Hal expose, cool.
So what will America and the world say when they find out the finance world is run on an algorithm from hell?
They already had this on NPR a few months ago....
Right, and so the libs that listened think what about it exactly? Did they listen or were they too busy on their mocha lattes to look up from their ipods?
If you are listening to NPR then you are a lib.
You are listening to NPR.
Thus, you are a lib.
Are you sipping, listeners??
NPR and other leftish groups should understand thoust' Fed is the devil!
But they saw no pictures thus,no comprehension.
TIP to zerohedge
A better questions is why was Congresswoman Gabriel Giffords subscribed to Jared Lee Loughner's youtube channel sometime after 12/26/2010 and all the way till the night of Jan 9th 2011? And who on Youtube and why unsubscribed her from Jared's channel as she is obviously in the hospital. http://www.youtube.com/giffords2. Screenshots have been saved, just in case.
Are you suggesting - young love?
But Sheriff Nudnik........
Her subscription to his disappeared over the past 24 hours.
As somebody earlier suggested, it was probably some sort of hack into her account.
Or, just a really bad decision from one of her staffers.
James White's index finger look eerily similar to another shrewd operator's:
http://pzrservices.typepad.com/advertisingisgoodforyou/images/2007/05/24...
Computer algorithm??? Is the same one that LTCM used? AIG? Lehman?
Put some guitar hero in their hands and watch Harry Wanker cry while his portfolio goes to zeroooo!
Never underestimate the power of human stupidity to drive the pig higher and longer, to where no man has gone before.
Thank you for taking Maglev....
These tools of our destroyers are both rookies and academics...
You don't need a PhD to burn a currency and generations of savings. Give my kids a flamethrower and the keys to our treasury and I bet they could accomplish the same for much less.
"Hey Biffy, do you think Motorino's Pizza delivers down here in the vault?"
forget the audit
abolish the fed
Abolish the audit, just fuk the Fed. Turnabout is foreplay.
This was posted on Itulip in 2008 ... Ben is in total control.
By - ($#*) -
I have serious doubts about the dollar ratchet ... IMHO there is something else happening ... it's the Fed's Hammer Drill. The whole debate about the inflation deflation is irrelevant in the medium and long term.
A hammer drill employs forward-backward shocks in order to facilitate the screwing advance motion of the drill, and it's very useful for drilling holes in concrete, brickwork and ... the vaults of foreign central banks, the crumbling walls of our homes, pension funds etc.
It works like this:
1) The fed prints a ton of treasuries in a screwing motion ... and screws the dollar.
2) Foreign central banks of the countries that manipulate their currency (OPEC, China, Russia, Brasil, India Vietnam etc) start vacuum cleaning all those treasuries (our dollar - their problem) and the surplus is recycled in Wall Street "profitable" investments mainly through Sovereign Wealth Funds but also through investment made by subordinate banks or gubernment agencies .
3) Wall Street recycles their surplus of treasuries in "innovative" technologies to create bubbles of various sorts. That rapid inflation phase of a bubble is the strike-forward motion of a hammer drill that creates inflation.
4) The bubble collapses and all the derivatives created in the bubble vanish in thin air. That create the strike-back or release motion of the hamer drill. The volume of the pyramid of liquidity contracts by the evaporation of the "imaginative" derivatives and other notionals . The losses are absorbed by the foreign central banks which were recycling their surpluses on Wall Street.
5) The treasuries recycled by foreign banks are transformed from sub-inflation rate, pathetic-interest bearing notes into negative interest loans. (imagine you could get a credit card with -50% interest rate as the Fed got from the $4.4 billion invested by Singapore in Merril Lynch, which resulted in a 2.4 bil loss for the foreign investors). There are signs of deflation.
6) The Fed tries to keep the volume of the liquidity pyramid constant by pouring treasuries and modifying the distribution of levels by increasing the amount of power money. Threfore the Fed is screwing more the foreign central banks and produces more negative interest loans. (With negative interest loans, the more you loan from a bank the bigger profits you get - it's the prefect investment ).
7) The negative interest loans combined with a fresh influx of trashuries (released by the Fed in order to avoid a deflationary collapse create the ideal conditions for national bubbles (See what happens in China with the real estate and stock market bubbles)
8) Trying to keep things under control foreign central banks are trying to prop national economies being bled dry ( how do you think that the Central Bank of China is looking now desperately for a loan, when China is supposed to have $2 trillion in reserves?.)
9) The collapse of foreign national economies that were manipulating their currencies at 2) become unstable and there is a capital flight back to US markets:
10) A miraculous economic boom occurs in US as it happened during Clinton's time in office. Clinton was raising taxes, the deficit was vanishing, US economy was booming, unemployment was down, US economic growth was a record ... a true economic miracle in US while the rest of the world sucked ( Clinton had nothing to do with it, but was he was given all the credit .The same will happen with president Obama ;) He will be falsely credited with the Great Economic Recovery, without having anything to do with it.)
11) The FIRE hits the fan resulting in deep economic crises in the targeted foreign economies like it happened during the Asian Tigers Crisis. The only chance to avert a collapse is the pegging of national currencies to the dollar at an artificially depressed level. That's why China escaped virtually unscathed from that crisis ( they were doing such a currency manipulation since '93-'94 and they were able to do it because of the strict communist control). If the governments of the countries in crisis try to keep the status quo and try prop their currencies.... you get the Argentine scenario.
12) Recovery eventually starts to occur in the emerging market countries due to the currency peg manipulation. The dollar is still high and outsourcing of US jobs becomes the new trend. US economy begins to suck and US deficits are picking up . A 360 degree screwing/rotation movement ends. The cycle repeats from 1)
So, let's recap:
1)The whole mess we are in now was created by flooding the international markets with treasuries (ballooning US debt).
2)This mess was created by the same people who are now supposed to "rescue" us from the "Great Depression of 2008"
3) The solution offered by the Hankie-Benkie is ... flooding again the international financial markets with treasuries ... What a surprise and what an original solution!
And it seems it works ... everybody is wearing brown pants, crying "Uncle (Ben)!" and asks/begs for .... more flooding with treasuries:"........
Longest explanation of a roto-hammer I have ever encountered....
His China call in 2008'
Ladies and gentlemen here we have the Fed's Hammer Drill hard at work:
http://uk.reuters.com/article/market...29524820081222
BEIJING, Dec 22 (Reuters) - China's foreign exchange reserves, the world's largest stockpile, shrank in October to less than $1.89 trillion, their first monthly fall since December 2003, a source familiar with the situation said on Monday.
[...]
The reserves stood at $1.906 trillion at the end of September, the last date for which official figures have been reported, meaning they fell by at least $16 billion during October.
The source, who wished not to be identified, declined to say whether the reserves continued to fall in November. The only other month since the start of 2000 during which the reserves fell was Dec. 2003.
[...]
A fall in the reserves would mark a drastic contrast to their rapid accumulation over the past few years, as the People's Bank of China, in an effort to keep the yuan stable, has bought up many of the dollars coming into the country through the large trade surplus and inflows of foreign investment. The reserves rose by $280.6 billion in the first half of 2008 to $1.809 trillion. For all of 2007, they rose by $461.9 billion, compared with increases of $247.3 billion in 2006, $209 billion in 2005 and $207 billion in 2004.
In the third quarter of this year, the last period for which figures are available, they increased by less than the sum of the country's trade surplus and foreign direct investment inflows during that period -- a very rough benchmark for gauging whether the country has witnessed capital inflows or outflows.
Couple that with the last entry in Brad Setser's blog:
http://blogs.cfr.org/setser/2008/12/...ght-to-safety/
This is getting hilarious ...
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I guess that nobody grasps the importance of that Reuters article about the decrease in China's foreign reserves....
Let's put it in another way... What happens when China cannot afford anymore to both offer subsidies to the export sector AND sterilize trade surplus dollars, by increasing its level of dollar reserves (in order to keep the yuan down and exports "competitive") ?
Do you remember that strange piece of news, back in September, that PBoC was trying to go hat in hand to IMF for a measly $5-10 bil loan?
It didn't make any sense then. Why China with $2 trillion in foreign reserves would need a small loan from IMF? Why such a successful investor like Bernie Madoff, with $50 bil in assets in his funds and good , solid returns was looking for a measly $2bil loan from a few banks at the beginning of November?
But if we consider that the Chinese Ponzi scheme of export growth engine based on currency manipulation and FDI recycling into subsidies, had it's Madoff moment/beginning-of-the end in October (as implied by the decrease in reserves).... it makes a lot of sense that PBoC tried to get a small IMF loan in September.
Of course many would refuse to believe the Chinese economic miracle (which had produced double digits growth for the last twenty years) could be based on a Ponzi scheme.
Many refused to believe the Madoff funds which have achieved 12%+ returns for the last 10-15 years could end up as a Ponzi scheme...
When evolution of events in history don't make any sense, usually that means we are missing the important details and we don't understand what really happened then and there.
So in a nutshell what does that all mean? That China is going Boom Boom Pooow?!
And also "Loughner's mom is Jewish, according to Tierney" - Bryce Tierney is his friend.
I just imagine how many banksters will be put out of work in the financial services sector as the complete and total economic collapse goes full bore. It helps me to sleep at night.
Not surprising.
China is pulling a Nathan Rothschild on Europe and the world. The Federal Reserve is providing China with the liquidity to buy up Europe and the entire world.
Didn't China just buy a sea port in Portugal?
Just think how well we'll be doing when rates exceed 10%
We'll have to raise rates even higher just to bring them back down
yummmm....30%.....got TBT yet? It's still cheap.
I commented on this in an earlier thread, and, well, I guess that great minds think alike:
by TruthInSunshineon Mon, 01/10/2011 - 16:13
http://www.zerohedge.com/article/guest-post-v-vendetta-2011#comment-865027
"Federal Reserve's minion claims they're trying to get "best price for taxpayers" in buying government treasuries.
Really?
1) Why is Federal Reserve spending taxpayer money?
2) Wouldn't the best price be had buying directly from the Treasury Department, rather than on the open market?"
The smallest miscalculation, a few one-hundredths of a percentage point here or there, could unsettle the markets and cost taxpayers dearly. It could also embolden critics at home and abroad who say QE2 represents a dangerous expansion of the Fed’s role in the markets.
“We are looking to get the best price we can for the taxpayer,” said Mr. Frost, a buttoned-down 34-year-old in a striped suit and rimless glasses.
The Fed’s QE2 Traders, Buying Bonds by the Billions
Market = Fed + a few peons, like China, so where can a miscalculation come from?
For the late arriving crowd, the banks (PDs included) own The Fed.
Meethinks the PDs are a cover for the Fed. Will know when one is sacrificed on the altar of believability.
Heck they could use Commodore 64's for all I care. As long as the economy keeps recovering the POMO "juice" makes my longs go up that much faster--LOL. Dusted off my Dow 13K a few days ago. Just wondering if I'll be sportin' it this summer or have to wait until X-Mas. BWDIK, I'm just a Joe-Six Pack long-LOL
@onlymyopinion
Congratulations motherfucker. You're cheering for the guy who dropped the chlorine tablets in the "showers" at Auchwitz.
by onlymyopinion
on Mon, 01/10/2011 - 22:10
I'm just a Joe-Six Pack long-LOL
If you are serious, you have a date with the electric shears soon, sheeple.
Wall Street fraudsters claim sheeple's coat makes the finest coats and rugs.
I've been mainly long since spring 09'. And yes, I'm a Joe Six Pack with an IQ not much higher than my shoe size---LOL. As long as 90% of the posters on the sites I visit (like here and tickerguys) are Perma-bearish I will remain long. The herd is seldom right. ROFL ROFL ROFL
Bullish sentiment is near at a multi-year high right now.
Zero Hedge is the contrarian, largely speaking (HairyWang, RobotJerker, Smailes & a few other paper traders being the exception proving the rule).
"LOL" is the tramp stamp of trolls.
"Bullish sentiment is near at a multi-year high right now"
Seriously? Where?
I'm sure you'll be back boasting about your "gains" when the market dumps. LOL LOL LOL
First off, I'm not boasting just sayin' I've been long (mainly SSO and some FAS) since spring 09'. What's wrong with stating a persons position in this market? My outlook today, based on the strength of the recovery is that the Dow & SnP, will be at ATH's by the end of next year. If that changes my investment decision will change. I'm expecting Q4 earnings will be much better than expected and see no reason for the market to sell off any time soon.
Well, the report is a bit biased. Bloomberg terminals are not the only way that you can get market info. What's wrong with going to NYU? Bernank is a MIT Phd and Krugman is a Yale B.A and MIT PhD. So what?
Oooooooh, Sexy Geek alert.
Watch out TD, you may have some stiff competition from these terminal jockeys.
Oh Marla, how can you resist?
This fruit is so ripe and it hangs so low...
stimulate the economy, is that what they call it now? The Vikings used to sack the village. The fed uses Sack to pillage. I guess it's the same. Strike up the song of PD conquest:
http://www.youtube.com/watch?v=tCvMKcNJCAY
http://www.youtube.com/watch?v=3OR6HkGS11c
This must have been linked from the Onion !
bankers...fucking bankers...
let's put our heads together...
now who do we shoot first....
Geithner
Fwanks, and all that voted for his (sore) ass.
Jamie Dimon
And by the way, I am normally restrained in my use of choice language, but sometimes one can't get their point across...as emphatically as one would like...without some colorful profanity:
We're completely and totally fucked as a nation. This article is proof that The Federal Reserve is totally corrupt and a hand maiden of the criminals on Wall Street, that the main stream media, including but by no means limited to The New York Times is absolutely in the propaganda business, and that the 99.7% of Americans (maybe more) that do not have direct and close ties to the powers that run the financial conglomerates on Wall Street, in London, and in other 'financial hubs' around the globe that really do OWN GOVERNMENTS will see their monies and future potential monies stripped, stolen and lifted from them, by a variety of means, to subsidize the lowliest, criminal, vermin scum ever known to walk the earth: financial elites.
No, Dororthy, we're not in Kansas anymore, and I'm afraid this is not a conspiracy theory. It's verifiable fact. So lube up, Dorothy, and tell your family and friends to prepare to do the same.
Unless, that is, you and your family and friends plan on doing anything about this, and aren't the docile sheep they think you are and always will be.
Here's mud in your eye, Dorothy.
*One caveat/correction to this article, if I may: While certainly not inconsequential, the primary dealers selling these bonds to the Federal Reserve, apparently with the purchases funded via "taxpayer money," according to the Federal Reserve lackey cited in the article (I still don't comprehend that; it's allegedly 'The Fed's balance sheet,' as we've been told, right, and they have their own capital and cash, allegedly, right?), are reaping tens of millions in commissions on the sale of billions of treasuries per day.
And of course, under the fractional reserve system the banks created the FRN's out of thin air in order to purchase the bonds in the first place.
you probably need to know who the three traders are dating and doing, and see how the trading algos are working.
LOL... A love triangle causes feuding during their trade session which causes a 'fat finger' which leads to the down fall of the Western world. How fitting for the depraved, soulless, materialistic monsters Americans have become.
Smell this...do you smell shit on my finger?
-Guy in blue shirt in photo monetizing federal debt
+1 lol
Here's a 'fight club' kind of idea. Why doesn't someone go & pull the fuse for the power in that room?
Got an address?
33 Liberty Street New York, NY 10005
Any peek behind the curtains was sure disappoint. I expected a setup like the bridge of an Imperial Star Destroyer. Bernanke, dressed in all black, would pace up and down a raised platform amid the terminals and randomly choke people out with his force grip. There would be a pregnant air of fear and anticipation in the air as trillions were blown for glory of the Federal Empire. Either that, or the whole thing would be taking place in a masonic lodge over beer.
You are remarkably close. Here is some video of the Fed's team at work:
http://www.youtube.com/watch?v=9hynzB459Jc&feature=related
Look on the bright side, the Fed is employing a couple young people...to help burn down the dollar, but still employment. Jobs a job, right?
Correct. A job is a job. How many people can we now employ to cart these klowns off to the crematorium?
http://www.youtube.com/watch?v=QaG2Acg8n60
keep it simple, stupid; meet your new world order soon to be if not already replicated in the finacial capitals around the globe.
new order, new reality. another day at the office and a return to normal. trade it or fuck off. get used to it bitches. noda has gone atomic.
I thought it was spelled 'Yoda'. What the fuk is 'noda'?
you are dumber than i thought; Noda, Japan's FM tells market Japan to buy 20% of EZ bonds.
Quit thin-fingering the "N" then. Don't make me go Jared....
that's it? that is all you have to contribute to the conversation?
no trade ideas to offer?
TBT. Daily is sell AVL at open, then buy back in the afternoon. Your picks?
long risk........Noda was preceeded last night by the PBOC calling for divesrification of dollar reserves into equities and commodities.
BOJ has room to run to come close to the FED.
no one wants to be the first.
good luck.
AVL trades 20 - 30 cents higher in pre-market than regular, if you like the vig on Pre.
Better range than TZA lately.
..
That's not my junk, BTW. Must be some Libs...or Cdad is here...
Going Jared = Killing 9 year olds
Going Ben = Killing the Dollar
It could have been 'nada', my desire to go to Acapulco.
Charts? Who the fuck needs charts anymore? These guys are the charts. Im sure chart junkies alike are thrilled to know that these two guys wipe their asses with those photoshop designs otherwise known as charts
Im sure chart junkies alike are thrilled to know that these two guys wipe their asses with those photoshop designs otherwise known as charts.
That was a funny/crude visual.
Gives a hole new meaning to weekly chartology!
ORI
http://aadivaahan.wordpress.com/2010/12/24/where-do-we-fit/
Strangely, this year reading goat entrails has outperformed charts.
what a farce. why do they need to get a good price? the more they pay, the lower the rate, and the more cash injected into the banking system. The taxpayer doesn't care. it's the Fed's balance sheet, not the national debt. the fed will collect interest on the bonds and should then kick it back to Treasury. and any proceeds, if ever received, go back to treasury.
Ah, taxpayer (occasionally) here! Object to the salaries paid to the system before rebates rebated!
What is The Bernank collecting off my dime?
I saw this in the NYT earlier today, and my first reaction wasn't shock, but rather "I've seen this somewhere before."
It hit me a couple of hours later: this is the same type of shit that was going on in ~2001 when Enron and the rest of the energy companies were busy robbing California and other states while blackouts rolled through. On one side, the half-dozen California ISO energy traders had a couple of old computers, calculators (they looked like the BA-II, the simple MBA-type calculators), notepads, and pencils. On the other, the Enron traders had 8 monitors each, armies of rocket scientists backing them up, analyst lackeys, HP 12Cs, and the shoeshine boy. There was even a PBS episode about it, although I don't recall the name of the show.
When I saw that, the energy scam instantly became clear to me. When I saw the picture of these 3 kids at the FRBNY, I realized that the same type of shit is going down, but this time on a much larger level.
It's almost funny.
I know it may have seemed that Enron had every advantage in that scenario, but a lot of energy companies all around the Houston area will tell you how basic the scheme with CAISO really was. The market-making energy liquidity scheme whereby Enron traders would churn with themselves was comical. All those monitors and "rocket scientists" were just a bunch of newly minted energy traders gangbanging the F5 key.
It does seem like CAISO and Enron/Calapine/Reliant/Sempra in that the wholesalers could control the dispatch of the plants and affect supply at anytime. The Fed telegraphing CUISP numbers is really the outrageous part about this.
The slimeball part about the whole thing even to this day is that while Enron management got what they deserved for the accounting fraud, the rest of the energy traders making 7 figures on bonuses during those years are all still around somewhere. Ask them what happened, and the response is nearly uniform "market structure, california just fucked the design of the market. what did they expect to happen?" There are not like a couple dozen of them out there, there are like hundreds.
Give me a fucking break.
That's not "real work," it's planned sabotage.
dup.
cold, cold, frost
td ydm.
td ydm.
Get a Crackberry, and talk to other Crackberries. Fukking texter BS...
Aside from the obvious conflict of interest where the Fed is stealing from the taxpayers and giving to the Fed's owners; one would think that "the best and the brightest" would bristle at being welfare (cry) babies.
Once eveyone learns about the theft, fraud and conflict of interest, we can probably expect to see Lloyd in front of Congress again saying: "we did not need the Fed's to embezzle on our behalf"... just another Goldy lie.
And where will everyone learn about the theft...ad nauseum? Newspapers? TV? The NEA? CONgress? The latter we can hope for.
I been sayin' it: America will inevitably and of necessity drift toward state run capitalism, at the same time as China liberalizes its economy. Surely the irony's gotta strike you. And don't call me Shirley.
Aaarrrghhh!
Shirley you jest!
Touche Toupe!
Audit the Fed:
http://www.federalreserve.gov/monetarypolicy/files/BSTcombinedfinstmt200...
You have to hand it to them. These schmucks are stealing millions of tax payer dollars and they hired an intern from NYU to do their dirty work. God forbid they have to pay a decent salary.
The William Dudley wanted to offshore the purchasing to an Indian firm in New Delhi, but The Ben Bernank said that would have made him "look bad," because he keeps talking about the (real @17%+, including discouraged, off UI, formerly self-employed & 'missing' individuals) unemployment rate, which is stubbornly high at 9.4% (9.4%, cough, cough *bullshit*).
No CIT, Pudley espoused that? Damn, I need better mistresses...
Wouldn't it be great if missy there had a fit about her boyfriend while listening to her iPod and texting in one hand and just happen to dump a few extra billion dollars at the wrong interest rate?
I may be wrong but I would not be surprised if these people are considered "back office" or "operations" employees; which, within the context of the world of finance and banking, is the equivalent of cleaning toilets.