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VIX About to Break 20, And... It's POMO Time
The VIX gets ready to break through the 20 resistance level, courtesy of the Federal Reserve.
And speaking of the Fed, Bernanke seems intent on continuing liquidity transfer in perpetuity, and milking marginal volumes higher, as the S&P is set to hit 1,200 today on oddlots. Today's play: circa billion dollar luvin of long-dated treasuries. Presumably, large enough to goose the market higher, but little enough to leave time for one last ditch attempt to bail out the market the next time futures are negative pre-market.
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Sort of OT:
I was checking the numbers at the Fed today, and their balance sheet (table version) listed assets of $2.195 trillion as of October 14, 2009, while ZeroHedge's post listed assets of $2.128 trillion as of Oct 14. Why is there a discrepancy of $67 billion?
Source: http://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm
All long dated and some of it with the ink still wet. The fed trying to save housing and force everyone to seek risk for income. I guess only the fed is interested in this treasury garbage.
As they say, GIGO, garbage in, garbage out.
LOL at AIG taking off while the markets cool down a bit intraday.
Anyone have opinions on VIX relevance? I've seen some state that VIX has become increasingly irrelevant with the introduction of all the levered ETFs.
They got a 15 point pop on the SPX for what 60 cents on EURUSD. Amazing.
It feels like they are getting less and less effect out of their destruction of the dollar.
But I'm sure they have some new type of thermonuclear bomb they can set off at a moments notice if things get out of hand.
Desperate men will do desperate things.
Precisely - The whole situation lends itself to a focal point if you will. Think of it in terms of they will have many choices, but two that stand out in my mind:
1) They roll QE 2.0, of which the party doesn't stop, USD really becomes buttwipe.
2) They force the sheeple that look for "safety" in UST, by imploding liquidity like they did last year to pass stimulus. It sure will allow them to fund the new issues (myopic duration though) unfortunately with a significant pain to Equities. This time it will nuke the following people: Carry Traders, IRS playaz, Mom and Pop dumb money, all those people they'd like to burn. If they let it "get out of hand" (of which I think is a high probability), S&P at 666 will seem like a warm breeze compared to the lows from a engineered drop gone astray.
that.is.the.plan.
SV,
I agree. Every time I think about this as if it's a chess game and I'm thinking many moves ahead, I always come up with the same ending to this phase of the game. Call it the middle game.
They will need to flush money into the treasuries once the rest of the world wakes up and decides they are better off pulling out of the dance. The only money left to flush is the stupid and hostage money in the US, mostly in equities.
With this latest stock market run up, the sheeple have been re-indoctrinated to buy and hold and are now ripe for another screwing.
Treasuries and the new Hope bonds
I think we're turning Japanese
I think we're turning Japanese
I really think so
Did BoE's Mervyn King say something about not extending QE further? UK has been the trial balloon for QE. No. 2 looking more likely than No. 1.
Is this a Heli-Ben experiment gotten completely out of control?
He may have started out with good intentions, but the road to hell is paved with good intentions.
The dollar system can only be maintained by imperialism (stealing resources from other countries)and by stealing the wealth of the American people via perpetual inflation and punitive taxation
The dollar has 4% of its 1913 spending power. What will $1 buy in another 30 years Ambrose? A grain of rice perhaps. Not even that I reckon.
As Thatcher said, socialism doesn’t work because you run out of other peoples money to spend (waste). With America already 14 trillion in the red and pension and medicare obligations conservatively estimated to be 80 trillion, where’s the money coming from to pay for the empire? America is hopelessly insolvent. Only the Fed’s seignorage is keeping the USA afloat.
The rush towards a one world governmnet and a single global currency is the answer being pursued vigourously by the ruling oligarchy because they know the whole global economy will collapse without it, choking off their revenues in the process. The New World Order will reduce everyone to 3rd world poverty levels anyway…..but save THEM. We mustn’t let them get away with it.
And there is but one way to stop them.
VIX means nothing today.
RBOB $2.06, say hello to $3 gas consumers. Those struggling to meet mortgage payments already, bad luck.
the VIX means quite alot, especially as its realized volatility hits 2 year lows, and volatility is mean reverting (ie it is going to go up, corresponding with a pop in the VIX and a drop in the market - but I published that this morning). Of course talking about resistance on a statistic is meaningless though, as the VIX isn't tradable. And I assume you meant 1100, as 1200 is out of the question.