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Today's POMO Starts

Tyler Durden's picture




 

Another day, another chance for Brian Sack to give $3-5 billion in free, free linen to the Primary Dealers to buy themselves some Apple. Today's POMO has started, and the bonds to be monetized include a variety of 2016-2020 vintages. Once again, these are the bonds which will likely be purchased the most in the upcoming $1-$1.5 trillion QE2, so PDs may hold off selling them back to Brian until they get much better prices. Although who the hell knows or cares anymore. After all, if things get ugly the UK will simply come in and buy a quadrillion worth of Bonds using some more of that Fed free, free linen.

 

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Mon, 10/18/2010 - 10:30 | 658106 MarkTwainsMustache
MarkTwainsMustache's picture

When this is all done with the Fed will be powerless...they can't place bids on the entire bond market

Mon, 10/18/2010 - 10:32 | 658114 Ethics Gradient
Ethics Gradient's picture

Do you want to tell them that or shall I?

Mon, 10/18/2010 - 10:36 | 658120 MarkTwainsMustache
MarkTwainsMustache's picture

I'll get on it

Mon, 10/18/2010 - 10:37 | 658123 Sudden Debt
Sudden Debt's picture

Tell them I said "Hi"!

Mon, 10/18/2010 - 10:32 | 658112 ratava
ratava's picture

i see .59 on my google finance. no magic number no bacon brian.

Mon, 10/18/2010 - 10:58 | 658154 Fidel Sarcastro
Fidel Sarcastro's picture

Whoa!  Reggie Middleton will be on CNBS shortly.  Go Reggie!

Mon, 10/18/2010 - 10:39 | 658118 99er
99er's picture

Chart: ES and ZB

A guess: POMO FAIL. The world has seen America's dirty linen and has had enough of this crap.

http://99ercharts.blogspot.com/2010/10/es-zb_18.html

Mon, 10/18/2010 - 10:36 | 658121 Turd Ferguson
Turd Ferguson's picture

And gold turns UP on the day.

God bless POMO.

Mon, 10/18/2010 - 10:39 | 658126 Bigger Dickus
Bigger Dickus's picture

I am long piano wire and lamp post stocks.

Mon, 10/18/2010 - 10:40 | 658129 barkingbill
barkingbill's picture

good one. 

Mon, 10/18/2010 - 10:41 | 658130 williambanzai7
williambanzai7's picture

Mon, 10/18/2010 - 11:11 | 658223 Rider
Rider's picture

Everybody in main street is cheeering the POMO events.

Thanks to El Presidento y El Tesorero for the great help to this Hermoso Paiso.

Arriba El Presidento y arriba el "cambio en el que usted puede confiar!!"

Mon, 10/18/2010 - 11:19 | 658260 williambanzai7
williambanzai7's picture

Ariba!

Mon, 10/18/2010 - 10:41 | 658134 Sudden Debt
Sudden Debt's picture

I made up a list of stocks they should buy of which I think would boost the economy and my wallet.

Does anybody have their fax number?

Mon, 10/18/2010 - 10:45 | 658143 Ethics Gradient
Ethics Gradient's picture

 (212) 720-6831

Mon, 10/18/2010 - 11:04 | 658200 Conrad Murray
Conrad Murray's picture

Now don't everybody go sending 1,000s of all black pages.

Mon, 10/18/2010 - 10:42 | 658136 tmosley
tmosley's picture

I gotta FEVER!  And the only prescription...IS MORE POMO!

Mon, 10/18/2010 - 10:44 | 658141 Internet Tough Guy
Internet Tough Guy's picture

Needs more POMO?

Mon, 10/18/2010 - 11:09 | 658155 AccreditedEYE
AccreditedEYE's picture

+1 LOL  "You know, fellas, I put my pants on one leg at a time just like you... Except once my pants are on I go out and print dolla's!!!" -Benny "Bruce Dickinson" Bernanke

Mon, 10/18/2010 - 10:43 | 658139 Ethics Gradient
Ethics Gradient's picture

Ah, yes. The special relationship.

The UK has been goaded by the Fed (as if at some warped Frat party) to insert some QE into America via the back door.

Did it touch the sides?

Mon, 10/18/2010 - 10:47 | 658149 His Dudeness
His Dudeness's picture

Tyler, et al,

Being new to all this, how do we know:

Brian Sacks(POMO) $ -> PDs -> Apple?

Mon, 10/18/2010 - 10:49 | 658152 plocequ1
plocequ1's picture

Wow, That was easy. Buy Appl and Goog and get guaranteed money. Thank you Fed for my early christmas present. Merry Christmas Doctor Bernanke. I think i will add to my long Goog and Appl positions.

Mon, 10/18/2010 - 10:48 | 658158 Cheyenne
Cheyenne's picture

Reggie Middleton will be on CNBC in a few minutes...

Mon, 10/18/2010 - 10:51 | 658162 Boston Wealth
Mon, 10/18/2010 - 10:53 | 658170 depression
depression's picture

Market rising into POMO threw me completely for a loop. Brian, if you are reading this: am I supposed to be a buyer here or a seller ??!!?? Oh wait, i remember now... "Stop Thinking and Just Buy Dummy"

Mon, 10/18/2010 - 10:58 | 658181 ratava
ratava's picture

buy treasuries, you will be the last to get invaded if you collect enough of them

Mon, 10/18/2010 - 10:58 | 658179 Ethics Gradient
Ethics Gradient's picture

Current headline on Reuters:

Citigroup profit tops expectations

Issues in depth section:

Apple's one-two earnings punch

"Strong sales of both the iPhone and the iPad may give investors confidence that Apple's stratospheric valuation is justified. But how long can the powerful one-two punch last?"

Isn't the world interested in openly manipulated markets? Is it just us?

Mon, 10/18/2010 - 11:20 | 658209 depression
depression's picture

Isn't the world interested in openly manipulated markets? Is it just us?

The world only cares when the market is going down, crashing. Folks don't question things when they are making money. The US real estate market 2000-2007 is a good example.

Brian Sack's job is to keep the pacifier of liquidity in our collective mouths.

The ultimate bubble, the US Treasury market, when it collapses and interest rates spike above 10%, will expose this Ponzi scheme. It's not a question of "If" but rather "When" ?

Mon, 10/18/2010 - 11:16 | 658237 the rookie cynic
the rookie cynic's picture

Did you hear about Apple's latest product? It's called the iPOMO. It's a joint venture with the Federal Reserve. Planned release is sometime in 2012. It's designed for users to help the Fed print more money as its own presses get overwhelmed by hyper-inflation. The Fed is gonna need all the zeros it can get. So, the idea is that you plug the iPOMO in to a USB port and it allows anyone to add zeros to their bank account. That way the Fed doesn't have to print so much all by its lonesome.

Mon, 10/18/2010 - 12:33 | 658496 Ethics Gradient
Ethics Gradient's picture

The Apple Act 2012:

Apple becomes a non-audited company cabable of issuing currency and buying it's own debt. Apple then becomes the largest employer in the world with over 160m people on it's books and releases a new version of the iPhone every three hours.

Steve Jobs starts the Apple Press Channel just so they can broadcast his perpetual press conference about the benefits of the newest iPhone.

Ultimately the resulting hyperiphoneobsolescence ends with people giving up trying to keep up and reverting to writing letters in charcoal (due to a global lack of ink).

 

Thu, 10/21/2010 - 10:21 | 666633 yipcarl
yipcarl's picture

LOL! 

Did you hear about the new revolutionary ipad stand?  It talks to you and makes coffee!  My gosh apple is not that cool.  Ok fine they brought the touch screen to market yay.  Now they are going to get copied and produced for nothing.  Unless you people have another trick up your sleeve you're screwed.  This is the same thing that happened in the 80's.  Big following, much love for them and what happened?  This disappeared and Jobs is not long for this world.  When this stock comes crashing down it's going to make one hell of a mark.

Mon, 10/18/2010 - 11:03 | 658197 lettuce
lettuce's picture

holy fck, 6.3 billion today td! a new record?

Mon, 10/18/2010 - 11:03 | 658198 Oso
Oso's picture

6.26bl, big one today

Mon, 10/18/2010 - 11:08 | 658210 rumblefish
rumblefish's picture

can someone explain to a simpleton how the $ from POMO reaches the equity markets. Do we assume the liquidity provided makes it's way stocks or is there a more direct link between POMO and the market.

Mon, 10/18/2010 - 11:09 | 658215 HarryWanger
HarryWanger's picture

Couple that with lousy Industrial Production numbers and rally on! Oh, that's right a "survey" of home builders trumps IP number.

Mon, 10/18/2010 - 11:10 | 658217 Gromit
Gromit's picture

Players sell bonds to the government and reinvest proceeds in equities

Mon, 10/18/2010 - 11:23 | 658279 Thalamus
Thalamus's picture

The one positive is that every dip in the market is a guaranteed buy signal...at least so far.

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