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Second QE2 POMO Schedule Released: Fed Will Buy Back $105 Billion In Bonds Through January 11
The New York Fed has announced its 2nd POMO schedule. In the next month, Brian Sach will buy another $105 billion in bonds, which is lower than we expected, and may indicate that Sack is not expecting the MBS prepaying to accelerate. There will be 18 POMOs in the next month. And December 21 will be another day that will have two POMOs held: one at 11am and one at 2pm. With negligible trading volume, we expect the ramp in the market then to be ridiculous.
From the Fed:
Across all operations in the schedule listed below, the Desk plans to purchase approximately $105
billion. This represents $75 billion in
purchases of the announced $600 billion purchase program and $30 billion
in purchases associated with principal payments from agency debt and
agency MBS expected to be received between mid-December and mid-January.
Full schedule.
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Ground Control to Ben Bernack
Ground Control to Ben Bernack
Take your pomo pills and put your groove' on
Ground Control to Uncle Ben
Commencing countdown, reflation on
Check ignition and may Timmay's love be with you
Ten, Nine, Eight, Seven, Six, Five,
Four, Three, Two, One, Liftoff ...
http://www.youtube.com/watch?v=PDwH9UlRIjc&feature=related
Tim not well ? Kidney stones I hear..
I'm sure his version of Turbo-Tax allows him to depreciate them as they are dissolved.
I think it was George "The Man" Ure who said that 94.2% of the time that a Treasury Secretary has kidney stones there will be a stock market crash on the day after the next full moon but if it's only one kidney stone, it drops to 47.8% of the time.
VIX should be at 0 in a month and a half, 2 months tops. Vol sellers have made a fortune.
we are all completely missing the point here....the stock holding public (e.g., wealthy) know and understand what Ben is doing......and so, are in the market, and Ben is just funneling what is left of the country's wealth to them.....
its the completion of the wealth transfer ....basically they are going to take it all before its over......
I hear ya, but not totally that simple Unwashed. Like it or not, a good portion of the "stock holding public" is also the regular Joe's retirement plan. (Be it Pension money managed by imbeciles or 401K plans) Benny knows what's at stake if what we all know WILL happen at last DOES happen. You will see riots when Pensions/401K's are cut in half or three quarters. Funniest thing is that none of these "stewards" of retirement have changed a damn thing when it comes to asset allocation... they are all betting on black to bail themselves out. Of course, with most financial instruments correlating at 1, does it/would it even f-ing matter?
we are all completely missing the point here....the stock holding public (e.g., wealthy) know and understand what Ben is doing......and so, are in the market, and Ben is just funneling what is left of the country's wealth to them.....
its the completion of the wealth transfer ....basically they are going to take it all before its over......
That's beautiful.
Jaded already?
How can you not be?
Consider this:
For reference, the just-expired POMO schedule began on 11/12. On that day:
The ES (mini S&P) closed at 1195.50. Last 1239.25. +3.66%
Feb11 gold closed at $1367.70. Last $1387.40. +1.44%
March11 silver closed at $26.02. Last $28.68. +10.22%
Jan11 crude closed at $85.34. Last $87.74. +2.81%
Checkout da DAX - rallied even more than US indices
Check out the Toronto index - allegedly correlated with commodities but lately, oil and gold go up, the TSX goes up, oil and gold go down, the TSX goes up.
Bernanke creating growth, move along!
I used to hate the FED, fought them tooth and nail. Now, I've succumbed to Dr. Ben "Strangelove" Bernanke's pied-piperish crooning.
O'brien has broken me. I've learned to stop worrying...and love the POMO.
Gotta monetize that toxic MBS debt!
Seriously, we could break the all time highs by end of next year or early 2012.
Never would have thought it. Investors have learned nothing.
flexible investors who have no ego in their investment ideas have learned a lot. Stopped clocks are always right twice a day. I'm not calling you a stopped clock however. It matters not whether investors have "learned" anything or not. All that matters is total return. I wonder if the true contrarian is now long spx?
Good point. But however i disagree with your true contrarian point. All i see is everyone bullish. Not one strategist is bearish, every research house is calling for a 10-20% move next year.
For the record, i remian bearish, i don't see how this ends well.
market no understandy bull or bear---only understandy buy low sell high (or short high sell low...
thanks for some real data. I'm getting tired of the doomer and conspiracy porn. Just when I decided to drop in and play it looks like all the cool people have already left and all we have are armchair anarchists and poseurs pretending to be investors, but you can still win us back by continuing with the data drops.
the above commenters excepted of course!
What, you overloaded on ZH "doomer and conspiracy porn" in just over a week? ROFL
Dude, shutup! He was just saying we were *maybe* good enough for him to like us.
You're making us look so uncool right now.
The Bernank doesn't see any inflation yet, ya'll. POMO pogo-stick 'til the whole thing pops again, I guess. Sounds like an excellent plan! I suppose this means I shouldn't short stocks yet, right?
I feel like I have a front row seat at the theatre of the absurd.
Hey Banzai, how 'bout Bernanke bouncing on a "POMO-stick"?
Nov deficit 150B.
only need to find suckers for the 45B gap.
I wish Ben would monitize my dept.
Lyndon LaRouche is suggesting bond crisis before Christmas. notes today http://larouchepac.com/node/16828
Bonds? Fuck Bonds.. POMO
Holy fcuk, Batman.
$150 billion deficit for November.
http://www.marketwatch.com/story/us-nov-budget-deficit-1504-billion-trea...
Anybody here going to jump on FAZ? Triple short banks. It's absurd at sub 10 bucks considering it hasn't been this low for 2-3 years.
High during crash was 1400 or something- and are the banks any healthier or delevered or less exposed to eurodoom?
B of A gets a quick respite from foreclosure stoppage and everyone thinks its goldilocks all over again...
Anybody here going to jump on FAZ? Triple short banks. It's absurd at sub 10 bucks considering it hasn't been this low for 2-3 years.
High during crash was 1400 or something- and are the banks any healthier or delevered or less exposed to eurodoom?
B of A gets a quick respite from foreclosure stoppage and everyone thinks its goldilocks all over again...
Seeing as the banks, the Fed, and Congress have stuffed themselves into the same unitard, I would be careful.
Sorry, iPad double tap doule post. A 1000 pardons...
50 Jan calls!
Marketwatch just announced that the U.S. Nov. deficit was $150 billion. That's got to be close to a record. At this rate, the ANNUAL deficit will be $1.8 trillion, a new record. That's close to half the Federal budget!
But, jabba the summers told me yesterday that the goverment has got a deficit plan. Apparently they are going to spend (grow) their way out of it. Seems perfectly rational to me.
Time to double down.
So how much new debt is expected over the same period?
Will the yields continue to rise? Can't be much longer until it will start causing some open damage.
I have been in FAZ for just 10 days watched it go from 12.5 to 10 before I pulled the plug, I've literally wanted to scream my head off, recently. But I'm gonna wait and get back in when it's lower, I could see this thing going to 9 or 8 before I re-enter
maybe i should try FAZ. about as frustrating as trading the VIX - keeps going down. must mean there hasn't been any volatility in the market!
Hello - this is Uncle Sam, with a warm 'Seasons Greetings' message for all you good boys and girls.
I just want to remind everyone that it's never too early to get started on those pesky tax returns, and not to fret, as we'll make sure your contributions are put to very good use.
Have yourselves a great Holiday Season, and we'll see you all healthy and prosperous in the New Year!
How about the gap between AUDJPY and SPX.
let's see..."the government is the biggest debt debaser" AND! "the biggest lender too!!!" hmmm. precisely why would anyone in his/her right mind be buying this market? "Well...uh, cuz the government owns it all and there is no private market" hardy har har! Ben Bernanke must be the GREATEST BOND TRADER IN HISTORY! (He claims to have never lost money...EVER!) "Well...while your on the subject of free debt Mr. Debt Monetizer--how about a little of California, a little of Illinois, a little of New York a whole LOT of Wisconsin....
Of course the short sellers (of which I am not one--believe it to be un-American) go "right for the jugular." They exist IN THE MARKET. Anytime anyone screams "I'M THE MARKET" it's their job to "take the other side of that trade." ESPECIALLY THE DEBT MARKETS. What a bubble. "The fault dear Brutus is not in the stars...it's in ourselves."
Funny how SPX Seller get in when this shit goes higher! Pulled VXX Puts though don't think this is going to end well! More puts on SPX, more calls on VXX, FAZ, more puts on SLV, more calls on UUP! Thats it! DO or DIE! Of course all of it MARCH or Later, don't think January is enough time for...!
Looks like 2 days of Double Pomo's ahead of Christmas.
Yes, Virginia there is a Santa Clause, he is Jewish and the head of the FED.
Here comes Santa Claus, here comes Santa Claus RIGTH DOWN SANTA CLAUS LANE! Tim and Ben and all their reindeer pullin on those reins!
Newbie hat on, but what is a POMO?
"open market operations." Fed "prints digital money" and "buys digital debt." and of course "end result is Uncle Fed Guv goes on Spending Bender of Galactic Proportions." As it was when I went on a bender a few years back "you end up in the gutter and spring some leaks." In short "it all ends the same." Still..."someone rights good music about it" and "when it all ends Uncle Fed Guv then claim he'll never do it again but then...does it again."
That's for the explanation.
george - great explanation
the "P" in POMO = Permanent
http://globaleconomicanalysis.blogspot.com/2010/12/investors-hold-bigges...
http://fridayinvegas.blogspot.com/2010/12/jp-morgan-and-massive-silver-s...
Anyone have actual proof that JPM/HSBC are short 3.3b ounces of silver?
Thanks.
its just speculation...i dont think anyone can have in his possession such evidence and be alive
In other words, Shorting stocks can be hazardous to your health. There is nothing from this point on that will lead me to believe this market will crash. I dont care how bad the news is. I dub the Dr., Reverend, Governor , His majesty Jim Cramer my new financial advisor.
just shut up and buy the dip .........................
Please keep on walking, everything's ok, just keep walking...
More bond bludgeoning! To borrow Tyler's term from a few days ago, it really IS beginning to look like a bloodbath!
The Ben Bernanke said he was not printing money! Oh no, I've gone cross-eyed.....What a lying sack of shit this Ben Bernanke......
Going to bring China to its knees with hipper inflation.