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Primary Dealers Flip 53% Of Just Issued 7 Year Bond Back To Fed In Under Two Weeks
When the Treasury issued $29 billion in 7 Year bonds (CUSIP: 912828PY0) thirteen days ago, in an auction which we described as "unremarkable", the Primary Dealers took down $13.9 billion of the total issue, or 45.9% of the entire issue. Fast forward to today's POMO, which just concluded, and we learn that the Fed monetized $7.657 billion in bonds maturing between 09/30/2016 -
02/28/2018, or a 3.85 Submitted to Accepted ratio. As usual the internals are what matter. A quick scan shows that PDs could barely wait two weeks before they flipped more than half, or 53% of the full take down, right back to the monetizing hands of Brian Sack: 92.8% of the entire POMO consisted of just one issue - the just issued PY0 from last week. And so the shell game continues, especially since the interest paid on this $7.657 billion to the new holder, the Federal Reserve, will promptly be remitted back to the Treasury to be counted as revenue.
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Free money.
I'd like to know, honestly, who here would say no, on principle.
Someone walks up to you and gives you a perfectly legal way to make money doing NOTHING except being in the right place, right time, born to the right parents, blind luck.
Even if you knew, in some "invisible" way, someone was losing. A zero-sum game.
Would you play it?
ORI
http://aadivaahan.wordpress.com/2011/03/08/stunning-art/
If a person is desperate enough, there are no "principles" to consider. This is why those who wish to oppress his or her fellow man will always put them in a position where choices or the means to support themselves are limited or non existent.
Push someone far enough down Maslow's Hierarchy of Needs pyramid, particularly when they have loved ones they must support, and they will do just about anything to live, including taking your deal especially if those he might be harming are unseen.
On the other side of the equation, a person who has many millions of dollars and is offered a deal that might give them $10 or $100 more might just walk away and declare he did it because of the principal.
http://en.wikipedia.org/wiki/Maslow's_hierarchy_of_needs
Pinch Me. Is this real? When will the public demand that they put the crooks in Jail?
Even if the entirety of the US public demanded these crooks go to jail it wouldn't make a lick of difference because, as it should by now be abundantly clear, what the public want does not mean shit to the people in power.
This is why people with power always want more power. It's never about what you can do now, it's about what you can't do now that you could do with more power.
absolutely right! that's the point so many people miss. too often the focus is on the money...but those in power already have more than enough money, to accumulate more is redundant and fruitless...but power is another story. you can always gain more power...and that's why they do what they do. it's not about money...it's about power.
yes..$ are the vehicle that enables one to 'do what they want to do' in the view of the unenlighted commoners...but they fail to see that for those that already have enough wealth want power/influence. The naval gazing of 'elite' is as evidant to the enlighted (which ever class you belong to) as the PR campaigns of common'whores on facebook.
I'm in college (surrounded by young people in their early 20's) and I'm a contractor working independently for upper middle class professionals...a decent spread on demographics. If I mention anything about this stuff (like anything from ZH), I get treated like an asshole and a douche bag, no matter how politely I discuss the issues. Americans are fucking retarded. They happily choose an easy lie over a hard truth all day long. When TSHTF, you can bet they'll blame someone else, too. Fucking asses. Most will not wake up until most of the damage is done.
+1
Exactly CD.
Maybe it needs to be renamed Maslow's heirarchy of Greeds?
ORI
Anybody know what the spread is between the buy/sell to the Chairsatan? All in the name of market liquidity, of course.
I'm sure GS is giving us their rock bottom pricing.
In an article by Tyler a bit back where he was discussing this rigged game, Tyler said he thought the vig was around 5% when it should be maybe 0.5%
Good question ORI... I feel that most have been conditioned to accept it and play... if you're not winning in the game your losing...I want to win, oh you don't? sux for you bro.
or a game change would be nice
I want open real discussion of what the next game will be for the better of all
Yup tellsome, law of the jungle, eat the most or die, survival of the fittest was ushered onto us via old puppet Charlie D.
And it is the bedrock of capitalist thinking. At least in it's current form.
'Capitalism is darwinism in thin veneer.
ORI
http://aadivaahan.wordpress.com/2011/03/04/astrological-and-other-deep-insights-from-ca/
Holy crap, and all $7B was just dumpped on buying up all ES contracts available.
are you referring to the massive volume spike @11:24 or the fact that it's been pretty much straight up since the opening bell?
this shit is getting old ain't it?
Nah, it's all legit. Per Yahoo:
Stocks gain on bank-dividend hopes
See? Any year now - dividends.
LOL
It is getting old, perverse, and rabid. It needs to be put down like a dying rabies infected dog.
Complaining will get you no where. Why not take a dip in the pool? You may make a few $$.....
everybody loves a good scam huh?
THe current ES trading triangle on the four hour chart has been holding. I've been selling the top boundaries and buying the bottom boundaries -- has been working. Don't see 'conspiracy' here - just 'classic' techincal pattern...Squeezing shorts today. Around 1329, the pattern SHOULD reverse, which at current rate of acceleration, should plop us into tomorrow
EDIT: Maybe in an hour - ramp-up moving fast
It's no longer an auction. It's table tennis American style.
as the /ES goes fuckin parabolic.... same shit, different day.
Is this why the market is up today? Oil prices are only down about a 0.5% and there's no economic news to spin today.
PD has two hands, like the rest of us. But then we don't have the right to put our fingers in the honey pot like they do. What can you say? If these TBTF banks are heavily hocked anyway they are living off expediencies at tax payer's expense. A TBTF banker said to me... "we're getting richer every day". He didn't tell me about the down side. Or how much he lends SBE. I don't think he either knows or wants to know the true cumulative downside. Head in the sand...as it's too depressing anyways... the shadow banking/ fin. deriv. side...if what they say is true...one day we'll know...when it's too late. I do't think he thinks he'll ever lose his job. "We'll get bailed out. Always need banks, the bigger the safer". That's his mantra!
you should ask him if he'd be willing to walk into a bar outside the 212 area code (say...Texas or perhaps Detroit?) and proclaim "I'm a TBTF banker and I'm getting richer every day". Would he feel safe in doing that? If the answer is "no"...then he knows what he's doing is wrong.
Isn't this show on Lifetime?
Can we just get rid of the middleman? Can we say "greenbacks" and not federal reserve notes?
The nature of a debt based currency is that that there must be debt collapse since money must be printed to cover the cost of interest. If money is not printedto cover interest costs, there must be debt repudiation by the government.
This gets worse if there are no tariffs since funds sent overseas do not get recycled into the economy, they get stuffed into finance or assets, not wages for your neighbor. Simple example is oil drilling. You buy oil from overseas, they send money back and buy things like Del Monte foods and use the profits to extract more assets from the US. You buy oil from Texas and the drillers, oil companies, landholders and small towns make money and buy the stuff that is made in the US.
I am the only one that gets this?
Same kinda thing happened in Russia in the '90's, they ended up with Putin (not all bad).
Then there's this: Two Japanese men arrested by Italian Police while trying to smuggle $134 Billion in U.S. Treasury Bonds concealed in suitcases, out of Italy into Switzerland, are employees of the Finance Ministry of Japan.
http://billtotten.blogspot.com/2009/07/japan-caught-dumping-us-treasury-...
At what point do they realize they've broken the system in an attempt to save the banks? Ben is smart enough to figure out that this is taking too long and the world market isn't going to wait for his game to work. He isn't even getting the same bang for his "buck" that his predecessor did...
They already realize it. Stop listening to what they say for a clue to what they know. There is little to no connection between the two.
They lose all control with a broken dollar... and can forget about a "leadership" seat at the table of "new currency formation" lol
Puppets don't worry about steps they need to take next week or month. Puppets are worried only about the next step, then the next step, then the next.
Another 7b+ pumped into the equity markets. Who in their right mind would be short while this is going on? Just wait for the end of QE when there will be nothing supporting the markets.
Well, if they actually end QE in June, it will just be long enough for the next terrorist attack to occur to blame it all on, the lo and behold, TINA will usher in QEIII because, (repeat after me) "We have to do something!"
I am in the camp saying that QE will not end, at least not with this Administration and this Chairman. Arriving at the crossroads marked DEFLATION and INFLATION, politicians will always choose the latter because it is more politically palatable. Gold to 1600 and Silver to 40 this year, minimum.
It's really amazing. POMO ends at 11am. Market immediately takes off.
The sellbacks say all that needs be said. Without QE auctions would fail.
Why not just declare a Jubilee and cancel out all personal debt as of March 1 and start over?
Because the theives then have all the capital free and clear, and everyone else has to go back and borrow from them.
Sutton, that would require a successful slave uprising.
92.8% of the entire POMO consisted of just one issue - the just issued PY0 from last week.
This is just insane. Where is the outrage? The US goes further into debt, while the banks flip bonds to the Fed for a profit.
I asked this here before, but what is the commission to the PDs on the buy and then the sell back? Any ideas? Links?
how is this not fueling a more dangerous bubble than a housing bubble? oh wait even our own Billary Clinton head of state has said our national finances are our greatest national security threat...this seems to be leveraging ourselves greater on ourselves and banksters round the world are openly calling to the dollar ending the reserve status...wtf...actions speak louder than words...how many weeks/months past JUNE 30TH will our econzi last without MOAR???
While the Middle Class is stuck flipping cheap burger meat, Bankers are Flipping Billions and making Fat Bonuses.
Outright monetization, bitchez!!!