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Today's Edition Of "Flip That Bond" Closes As Primary Dealers Hand Out Vaseline To Taxpayers

Tyler Durden's picture




 

There are just two tables we wish to highlight for today's just completed $8.870 billion POMO.

First, the listing of the 10 cheapest bonds that the NYU interns at the Criminal Reserve should be buying:

Note that nowhere in the table above is bond 2.625% of 1/31/2018, also known as CUSIP 912828PT1, auctioned off last Thursday.

So here are the actual results of which bonds got purchased by the Sack Frost:

The bonds indicated as cheapest are highlighted in green. They amount to 9.5% of the entire POMO. What is more notable? CUSIP PT1, the abovementioned 7 year auctioned off last week, was 58.7% of the entire POMO, as Primary Dealers put $5.2 billion of the bond back to the Fed. This is 42.6% of the entire Primary Dealer take down ($12.2 billion) in last Thursday's auction.

Luckily, at least Jon Corzine's MF Global was able to participate in today's daily rape of the US taxpayer, courtesy of yesterday's expansion of the Primary Dealers ranks from 18 to 20 firms (French SocGen benefits as well).

And so criminal U.S. taxpayer rape continues, and nobody cares one bit...

 

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Thu, 02/03/2011 - 12:34 | 931104 Quintus
Quintus's picture

"Criminal Reserve"?

I prefer the term 'Feral Reserve".  I think it captures the essence of the organization nicely.

Thu, 02/03/2011 - 12:46 | 931152 Sudden Debt
Sudden Debt's picture

What about: FECES RESERVE

Thu, 02/03/2011 - 12:52 | 931165 66Sexy
66Sexy's picture

you can have all the money you want... as long as the market's go UP

reverse splits in Direxion bear issues mean only one thing

we are heading higher. the melt up is permanent. there IS no spoon.

Thu, 02/03/2011 - 12:54 | 931192 LiquidBrick
LiquidBrick's picture

More like: NO RESERVE

Thu, 02/03/2011 - 12:48 | 931163 Prof Gulliver
Prof Gulliver's picture

And "Quantitative Fleecing" is also more accurate.

Thu, 02/03/2011 - 12:52 | 931183 The Rock
The Rock's picture

+1

Thu, 02/03/2011 - 12:55 | 931195 The Rock
The Rock's picture

I prefer FRAUDERAL RESERVE.

Thu, 02/03/2011 - 12:35 | 931110 SheepDog-One
SheepDog-One's picture

Americans just think its all another reality show! They have no idea how close the reality of their own demise is though! Cant eat the flat screen.

Thu, 02/03/2011 - 12:49 | 931143 plocequ1
plocequ1's picture

I well aware of my demise. My samsung 55" will make my demise a little less painful. Just dont let me die in the middle of a McMillan and wife episode.

Thu, 02/03/2011 - 12:40 | 931133 LongSoupLine
LongSoupLine's picture

Just on CNBC:

"it's hard to say if QE is causing commodity inflation".  fuktards.

Thu, 02/03/2011 - 12:48 | 931162 Joe Davola
Joe Davola's picture

Hard to say, but easy to see.

Thu, 02/03/2011 - 17:26 | 932465 Common_Cents22
Common_Cents22's picture

what's hard is admitting the truth for the propaganda media.

Thu, 02/03/2011 - 12:45 | 931150 Downtoolong
Downtoolong's picture

What’s a TBTF bank supposed to do for a living when its traditional customer base increasingly refuses to participate in the banks corrupt and abusive markets? Simple answer, forget about your traditional customers and convince their government to do your bidding for them instead.

Thu, 02/03/2011 - 12:45 | 931151 LongSoupLine
LongSoupLine's picture

Steve LIESman just announced, on air, the question he will be asking Bernanke in today's press conf.

 

Outright insider propaganda prep.  Let's just announce so the Fed can prepare an answer (read: lie) ahead of time.

Thu, 02/03/2011 - 12:53 | 931186 taraxias
taraxias's picture

You got that ass backwards. The question LIESman announced he would ask, was the question TheBernank handed him to ask in the first place.

It's all smoke and mirrors.

Thu, 02/03/2011 - 12:58 | 931210 Cursive
Cursive's picture

@ taraxis

+1

Liesman is the footstool that ben.bernank steps on to reach the hat section of his closet.

Thu, 02/03/2011 - 12:46 | 931153 topcallingtroll
topcallingtroll's picture

Not to hijack just an aside, it looks like cnbc checks you out.

Thu, 02/03/2011 - 12:53 | 931187 Cursive
Cursive's picture

Lies-Man has a man crush on TD.

Thu, 02/03/2011 - 12:50 | 931169 total nonsense
total nonsense's picture

So is it just me or is there a correlation between the closing of the auction and the move higher in the market at exactly 11:00 am

Thu, 02/03/2011 - 12:50 | 931173 Cursive
Cursive's picture

It's time for Jon Corzine to enjoy a little off road action again.

Thu, 02/03/2011 - 16:39 | 932289 Amish Hacker
Amish Hacker's picture

Yes, nice to know they're going to deal Jon in for the next hand. I guess this means that the $500 million he made in 1999, when GS went public, (http://en.wikipedia.org/wiki/Jon_Corzine)

has been spent. So by all means, have a seat at the table, Jon. Nice to see you back.

Thu, 02/03/2011 - 12:52 | 931178 jesusonline
jesusonline's picture

“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. Josh Frost, who oversees the buying of billions in Treasury debt by the New York Fed.

Jews continue to rip off goyim. However, this is still news to a lot of the latter. Yet it never fails to trigger that "ANTISEMITE!" glitch in their conditioned brains. Give me some of your zionist-flavored junks now.

Thu, 02/03/2011 - 13:53 | 931524 tamboo
Thu, 02/03/2011 - 12:53 | 931179 jmc8888
jmc8888's picture

Monetarism....now what was for dinner? Oh yeah, nothing.

I wonder how many of the Queen's banks are getting free POMO (hadn't realized that foreign firms were getting in on it, but with soc gen, chances are other inter-alpha queen parasites are).  I wonder how much of this free money backstops the bric carry trade, or the spanish cajas. 

Don't forget mexico in the uncle ben's 'whipping up revolution in 2 years' world tour. 

Just remember the next time food goes up (just listened to the stupidest bitch describe the higher food prices), that all the experts think it's just due to weather (snow), higher demand (it's called hoarding now because you can't afford it later)...and that this will be reflected less as American famers pick up the slack....and grow other stuff (but not food) because the margins are higher....and oh yeah...the reason food hasn't gone up is because it hasn't gone up (not the hedges).  Not one word of printing.  I'm sure that 'expert' gets paid 6 figures.  They even said prices are just at the level of 2008, not more, and of course no contextual understanding (oil not 150, etc).

Little bit of a tangent but the bitch on tv describing food prices was as clueless as Palin and constitution.

One ring, one idea to rule them all.

Glass-Steagall

Our precious.

Thu, 02/03/2011 - 12:54 | 931190 oogs66
oogs66's picture

Is there any way to figure out what price was paid?  The new issue came at 99.247.  It closed yesterday at 98.689 and has been trading at 98.32 in the last hour.  Does the Fed pay that price or are they paying some stupid premium?

Thu, 02/03/2011 - 12:55 | 931198 Innocent Bystander
Innocent Bystander's picture

somewhere between the last few POMOs (instant flip kind) was the tipping point... historians will look back and identify this as the flashing danger light that BB&co. ignored/(no turning back now moment) ..in the belief that they could somehow cure gangarenen without painful surgerical amputation.  IB

Thu, 02/03/2011 - 13:00 | 931217 lieutenantjohnchard
lieutenantjohnchard's picture

bloggers keep posting that "nobody cares one bit" about the ongoing fed/wall street/washington dc pillage. this is simply not true.

people - lots of people - care. the fact is these same people are powerless to stop the pillage.

for the umpteenth time it must be said the usa has been hijacked by criminals who have gone so far as to say that peaceful protesters are terrorists. zh has writen extensively about it.

so rather than say people don't care just tell me this.

what can one do to stop it? i'm all ears.

Thu, 02/03/2011 - 13:13 | 931296 janchup
janchup's picture

2012 election.

Thu, 02/03/2011 - 13:31 | 931404 lieutenantjohnchard
lieutenantjohnchard's picture

true. but what if the election doesn't change the game? or the bernank or his successor stays rogue?

Thu, 02/03/2011 - 14:00 | 931553 tamboo
tamboo's picture

starve the beast, close all bank accounts, buy physical pm.

Thu, 02/03/2011 - 14:03 | 931565 lieutenantjohnchard
lieutenantjohnchard's picture

i have. i have. the second floor of my house is creaking from the weight of silver.

Thu, 02/03/2011 - 17:30 | 932495 Common_Cents22
Common_Cents22's picture

If you want to do something, become a precinct committeman and help take over the REP party from the ground up.  It's truly the only way.   look up everything ColdWarrior writes on redstate dot com.    It's simple and easy to do and will wield large influence over the party in a short period of time.

Thu, 02/03/2011 - 17:31 | 932499 Common_Cents22
Common_Cents22's picture

If you want to do something, become a precinct committeman and help take over the REP party from the ground up.  It's truly the only way.   look up everything ColdWarrior writes on redstate dot com.    It's simple and easy to do and will wield large influence over the party in a short period of time.

Thu, 02/03/2011 - 13:02 | 931230 tahoebumsmith
tahoebumsmith's picture

This is exacty why QE will never end. They are all just junkies now being supplied by their dealer, the FED. Now that the entire market depends on the POMO heroin, we will never have a free market system again. They now need twice as much in a shorter time to keep the withdrawals from kicking in. We are all just living in a Ponzi world now, nothing real just a system made up of artificial enhancements and deception.

Thu, 02/03/2011 - 13:03 | 931235 kentfinance
kentfinance's picture

check out gold. 1350 trades

Thu, 02/03/2011 - 13:04 | 931248 Johnny Lawrence
Johnny Lawrence's picture

And right on cue, the market turned around.  Amazing.

Thu, 02/03/2011 - 13:07 | 931262 Printfaster
Printfaster's picture

I for one support the Fed in its policy of monetization.

Given the loss of jobs, thus the loss of investment in capital, and the removal of investment capital by the government through taxes and debt disintermediation, there is no choice but for the Fed to replace 401K contributions through monetization.

Kudos to Bernanke for steadfastness.

 

Thu, 02/03/2011 - 13:23 | 931318 Cash_is_Trash
Cash_is_Trash's picture

Fed Chairman Requirements:

1) No spine

2) Willing and able to destroy lives

3) Print like a madman

4) Believe your 100% confident and infallible

5) Deny any wrongdoing and encourage others to do so

Thu, 02/03/2011 - 13:50 | 931502 Printfaster
Printfaster's picture

And the Fed chairman can go back to congress and tell them to stop spending, stop borrowing, and stop taxing.

I will not hold my breath.

Thu, 02/03/2011 - 13:56 | 931535 tamboo
Thu, 02/03/2011 - 13:16 | 931316 koot
koot's picture

The question is, how many more tricks can these guys come up with?  Just imagine what it is like at the Fed and treasury trying to keep track of all the scams and fraud.

Thu, 02/03/2011 - 13:18 | 931333 koot
koot's picture

How many new tricks can these guys come up with.  Just imagine working at the Fed and Treasury and all their banks and trying to keep track of it all.  Only a Sadist could enjoy.

Thu, 02/03/2011 - 13:25 | 931370 Overpowered By Funk
Overpowered By Funk's picture

One would think that with a head that large Liesman's brain should be proportional in size, but I'm convinced it's full of chocolate pudding.

Thu, 02/03/2011 - 17:39 | 932538 Common_Cents22
Common_Cents22's picture

Wasn't Liesman Will Farrels sidekick in Ricky Bobby?

 

or is he related to Goober on Mayberry? I forget.

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