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Weak POMO Closes: Only $660 Million In Monetizations
As expected, today's TIPS POMO was very week, with just $660 million in monetizations. Yet the market certainly was expecting some ridiculously number as seen by the simply stupid action in FX. This is Pomo 3 out of 9. $11 billion down, $21 billion left, or just $3.5 billion per POMO left until November 9. Of course, by then we will know just how big the weekly POMO contribution from QE2 will be. Look for one last attempt to pump the market today via the killing of the dollar and then a fade.
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Dang, even POMO's aren't going off too well? Whats wrong pirates of the Wall St, gettin weak knees or somethin?
CNBS headline:
"Bill Miller says now a great time to buy stocks"
No! Bill Miller? Really? Says to be 100% long? Really?
The fool was talking about how interest rates as "so" low now and historically when interest rates are this low stocks are a good buy. Of course, one must ignore everything else that's going on to make any sense of his argument.
It's a religion, not a discipline or an profession. We are being told to BELIEVE and it will be so. Just believe it and you shall be rewarded.
When they start talking about 72 virgins I might get interested.
CD,
Would you settle for 71?
At my age, I'd settle for one. I'd only need about 8 seconds, too.
Settle for seven seconds?
As long as you enjoyed yourself, Turd, what does it matter?
LOL. Sounds like your only 16.
16 or 61, same (premature) problem. :>)
And who needs 72 virgins, anyway. I'd be happy with just one Mandy.
Mmmmmmandy....
Thats depressing.
I guess Bill Miller doesn't understand that when interest rates are so low, future returns for other asset classes will be low by definition. If you discount future cash flows at a low hurdle rate and pay the PV today you're ensuring a low return.
He was on a very simple mission today. Kool-Aid detail.
KISS = Keep It Simple Stupid. Don't think, just buy buy buy.
That's a pretty good bang-for-the-buck...and, yes, the fucking pun was intentional.
Yea but you havent seen anything until BIG Pun!
YouTube - Big Punisher - Beware
Good to know. Just $660 though?
The market tape worm will not be happy to hear there will be no lemon cookie today
These pirates will tear thru 660 million like barbarian hordes on a shrimp cocktail!
Chart: SPX
And that's all she wrote.
http://99ercharts.blogspot.com/2010/10/spx_0.html
How do the POMO transactions work?
I'll take a shot at answering this and the community can then find the holes. The Federal Reserve buys back treasuries or bonds from the primary crack dealers like JPFraudman, Goldman Sux, Shittybank, etc. Then, those fucks, flush with cash, jump into the S&P and other equity markets to gobble up stocks.
Presto chango, money created out of the sphincter of the Fed magically helps to levitate the stock market outside of any reasoning.
I am not 100% sure if I answered correctly as I am just a lowly, community college educated, sales man of 10 years, with an underwater mortgage, loads of silver, guns, ammo, two little girls, a wife, and an insatiable desire to stop paying my taxes.
Mr Head, Thank you that makes great sense. And the bit about pomo helped too!
Permanently Overt Manipulation Operations...right????
POMO = Pumping Our Money Overboard
things about this POMO daisy chain that bother me are the word "collusion" and, of course, the term "conspiracy theory".
Wells Fargo has huge profits. How much of that was the offspring of POMO?
and how does WFC gain 4.5% in fourteen minutes? Yes that's what happened. Now it's even higher.
Well said Richard.
"and an insatiable desire to stop paying my taxes"
Surely they can print those for us like they do the problems of the elites correct? Also one of the rules of this magic ponzi Pomo low volumefest is that nobody is able to sell their stocks at the big trading desks because the markets could not withstand even a fraction of selling at this point. So they must continue to level up and pray none of the other desperate trading desks does not get short and cash in. Cannibalization is basically here. Just look at the trading revenues of MS.
The one action from our Federal Governmental thugs that set me off was the fact that Fed guaranteed and created nearly $24T in "money" for their buddies, while total credit card and mortgage debt in the country at that time was around $12T. So our elected officials and the private unelected banking monopoly put out twice the money required to extinguish the problem of the Fall of 2008 so that the banks could continue to claw bank assets at the expense of the people who bailed these fucks out.
my liberal neighbors still defend the actions of bush and don"t see the light.
If the fed is buying the instruments from the banks, how does that leave the banks more flush with cash than before they bought the instruments in the first place.
Before the banks spent the money on the various instruments, why didn't they pile the money into stocks in the first place?
This has always been a point of curiosity to me. Why after the feds buy and not before?
No matter, the $$ is down for what looks like the count. As Harry and Leo have been saying for some time, buy the dips.
Well, the Fed has to cover the fraudulent bonds that the banks sold in the first place. From my understanding, it's just a great game of hide the pickle and I have a good idea as to where the pickle ends up.
Let them have Vaseline.
Plus, I believe the bonds would be difficult to use buy equities until it is first converted to cash? I don’t know, I am just glad I never bought into the entire 401K bullshit. This musical chair game is losing chairs regularly.
the Fed has a website too. REPO and reverse REPO as temporary operations, usually 28 days. POMO is permanent, which means money is being added to the system, which for lack of better place gets put into stocks. So if you take a bond out of circulation, and replace it with a stock, voila! You have successfully manipulated the intentions of fund managers who used to spend all their time balancing their portfolios. The US government stock market will end, because the Fed isn't playing with real money, and the hedge funds and pension funds are,[ playing with real money ], or sweat money as its sometimes called. For want of another explanation there are two dollars, the one these guys play games with,(international games) and the one you and I use to buy groceries, and stuff. The sweat dollars represent collateral, and they hate 'collateral' they want it all for themselves, which is why the housing bubble was thrust upon us, as a giant raid on equity which made people poorer than they were.
If you want to defeat them, you have to husband those sweat dollars. This is what Bob Precter says, go to cash. Eventually our collateral trumps their credit. The market crashes, Obama and his friends go home. The world is a much better place.
One would think it was a Double Whopper with cheese... +120 now.
Nice bounce.
ZH is mentioned in a Time article..
http://curiouscapitalist.blogs.time.com/2010/10/19/will-the-federal-rese...
"A number of people both inside the Fed and out believe this is the wrong move. But one website seems to believe that Ben's plan might actually lead to armed conflict. Last week, the blog, Zerohedge wrote, paraphrasing a top economic forecaster David Rosenberg, that it believed the Fed's plan is not only moronic, but "positions US society one step closer to civil war if not worse."I saw that... didn't know what to think. When the propaganda machines start to pick up the storylines from here, what does that mean? Do things slip by the goalie or is it by design or is nothing by design? The last option seems the least likely to me.
It's a blog, still not the official Time mag.
But it was picked up by drudgereport (who has also started to post a lot of infowar stories). I have reached a level of cynicism that is both completely healthy and totally unhealthy. Though that too may be by design. Ugh.
Yet the market certainly was expecting some ridiculously number as seen by the simply stupid action in FX.
The market is up because there is nothing to bring it down today. No terrible news. Mortgage mess being denied by the banks or played off as "overblown". Dollar resuming its drop. Etc, etc.
It's going to take a crisis to bring this down, otherwise, as I've said for quite some time, we just muddle along. Nothing terrible, nothing great.
DXY down 1.27%, SPY up 1.28%
Well done, Ben
And China raising rates was a Crisis?
Gimme a break.
Ya your right Harry problem has been swept under rug..... More bad advice Harry.
Then why ???
http://www.cnbc.com/id/39759248
SS
I don't understand your argument. Clearly FraudClosure is big enough to bring down the Too Big To Fail banks. I agree with you 100%. This is a HUGE problem. It might quickly build to a "Come to Jesus" moment.
So what do you think with be the response to this? Do you think "they" (fill in whoever you think "they" are) will let the TBTF banks fail?
I think they are going to put a fence around TBTF and let them burn. Good bank/bad bank whatever is needed.
Then let the market correct ... They will move in and show support throughout the process but banks need to fail, fat cats need to go to jail. They can not fix this train wreck, the pensions are toast if they sit on this waste, they now have the green light to put this shit back on the banks. We have something in place to deal with TBTF. They just voted on this in the last 6 months.
The fraud is plain to see no amount of spin will change this. Everyone is affected by this friends,lawyers,police, the word is out...
We did not have all this in late 07' mortgage gate, fx, trade war .... The wheels are off the wagon.The rmbs market is the heart of the securitization market, this supports the global ponzi.
Doesn't that comment support exactly what I'm saying?? This is effectively being swept under the rug. That's what your link says as well. What are you trying to say?
This is the meeting they never wanted to have , oh fucking shit the game is over. Its us or the banks .....
Seriously, how are you reading that into this article. I read the administration saying, "all is good, go buy houses now". Which, in effect, is "the mortgage mess has been swept under the rug". How you get "the game is over" out of that piece is baffling to me.
Harry, you have been savaged by some on this board. But here we are and you have been proven right.
A voice of sanity in a place dominated by the emoition of fear.
Thanks. I play the markets long and short and get just as pissed as anyone else when we get lies and cheating. But you just can't blow every single thing into a major melodramatic crisis as is often the case here.
At some point another "real" crisis will rear its ugly head. Until then, why would anyone expect the market to "crash"? It'll just muddle along as it has been.
The implosion of the securitization market is happening ... "this is the real crisis".
This is the reason for the first bailouts, they never wanted this issue to see the day of light. The fraud is epic, this makes madoff look like a 2 bit whore....
They wanted a rebound to hide this mess, but the mess was to big to hide. Its all about the rmbs/cmbs/cdo's/siv's..... the mother of all leverage. The core is rotten, the us homeowner and her credit is the what supports credit card debt/consumer credit/ the global ponzi ....
When it blows up the amount of cheap money leaving the BRIC's will be breath taking, dollar denominated debt must be payed in dollars, the dollar will take flight as the rush for dollars will be on ...
Markets like this one end in exhaustion not a crisis.
Wow! Color me flabbergasted. I actually expected at least $8 billion today, especially after their showing on Monday. Well I was wrong on my suspect of the Fed. I guess they are going to use 60% of their ammo the week before the election?
Wow, $10B was submitted...hahaha. I bet some PD's are pissed.
tips suck, even teh fed heads know that.
I'm thinking that if the banks get a hole torn in their balance sheets..and there seems to be little that can be done to prevent that.. this leaves only two options for financing the government and national expenses; hyperinflate -destroy the wealth of millions of rich people, or renegotiate the debt (see default).
..I imagine a couple of days ago, US and China met to discuss these issues of mutual concern. China says, dollar level not important, but hyperinflation not good. Us says, well, we'll try our best. China says, well, just in case, we'll control your supply of tech. materials. US says fine, or something similar.
So now what to do, the situation just went five different ways from Sunday, the US can toy with the dollar because China has already crossed the line with rare earths, but it can't export arms, or advanced tech, or manufacture domestically, it can export softs, not so much with the gold and silver. There's no which way to spin the foreclosure as conforming to the spirit of the law, that takes out the TBTF, except GS, which is a hedge fund anyway. That's New York gone. phew! ..I'm on a limb, but I'm thinking, there's only one course left.. cut the number of SovX out there. ?
Don't forget to mention the amount of interest US companies have in China.
Don't really want to make them mad.
the last POMO was 10X the size of this one and we didn't get the corresponding dow +300 pop. perhaps they're keeping the pomo-powder dry and spreading it out a little?
Straight up, or straight down, sideways for 5 hours
Perfectly reasonable and organic...I don't understand your sarcasm.
Obviously, we need to step it up.
More bailouts.
More monetizations.
Higher Debt/GDP.
More "Make Work" projects.
Japan is going "Ponzi" with its monetizations and stimulizations.
And the Yen is going totally ballistic while JGB yields are pinned at world record lows.
What is Bernanke/Geithner, LLP waiting for??
Print, Print, Print, Print!!!!
Just do a $500 billion POMO and use the money to buy the XLF.
How hard is that?
Bulls are losing their window. They can't get the dow over 11100 despite trying 5 times. To quote Prechter: "Most rallies end by exhaustion"...........
http://finviz.com/futures_charts.ashx?t=YM&p=h1
Can anyone explain to me why when the DOW advance to decliners is 3 to 1 the market goes up 130 points, but yesterday the DOW had 9 to 1 declining stocks to advancing and it only went down 165 points??
I don't get the logic here in the great ponzi machine.
"Logic of the Ponzi Machine"
That's a good one. Not as brief as "jumbo shrimp" or "jobless recovery" but a good oxymoron, nonetheless.
I don't know who caim up with it, but when I read this all I can hear in my head is "benny and the inkjets". Very positive and uplifting song, bennny, benny... and the inkjets! You kow the one.
US (Stock)Markets will not find a new low, ever! That would be in nominal terms. Simple plan of debasement (currency,living standards,ethics....) by the Banksters/Politicans implemented via the Federal Reserve and Congress. The (im)moral guide of PTB is the antithesis of the Ten commandments...thou shall covet your neighbors labor and property for it is meant to be exploited by the Elite.....
Update on Portugal.
For all those that asked me to keep you posted, here's the latest:
1) Last night the leader of the opposition set down 10 demands the govt. must concede or else he won't pass the austerity budget. These demands are basically to tone down the planned spending cuts and tax hikes.
2) Today the govt postponed the budget vote until November (it was supposed to be by the end of October). Not a good sign IMO.
3) The war of words between the (discredited and corrupt) socialist PM and the leader of the opposition (surely the next PM) has escalated. They both called each other liars publicly and now refuse to negotiate without witnesses present.
4) Meanwhile the govt still hasn't disclosed how much spending has already gone on in 2010. The only certainty appears to be that spending has increased instead of decreasing. The opposition says the government is hiding the true extent of its financial predicament. The Socialists in power have a slim majority which is not enough to pass the austerity measures through parliament.
5) Many former Finance Ministers have appeared on TV stating publicly that it is better to get the IMF/EFSF in right away before spending gets out of hand and the country erupts into a political crisis. Also, the former leader of the IMF team that came to Portugal in 1983 was also interviewed on TV and advised the Portuguese govt to invite in the IMF ASAP.
6) Due to Presidential elections in January, parliamentary elections cannot be called before Spring 2011 at the earliest, which means any political crisis (highly likely) will be a serious affair.
7) The biggest unions in the country have united and will hold a joint general strike on the 24th of November.They promise to hold the biggest strike in Portuguese history and paralize the country. (Look at France to get a taste of how tough it will be to implement austerity in welfare state EU).
To sum up: Portugal will inevitably have to be bailed out by the IMF/EFSF. It's no longer a question of if, but when. In Portugal the proverbial shit is hitting the fan.
Hope you guys find this info useful. It's all factual except my opinion in the 2nd to last sentence. Isn't Socialism great?
Cheers
Count: Reports like yours are what makes ZH the absolute best financial site. Thank you.
count, that was a good report. Looking at the options, my guess is Portugal will default before the IMF is called in. I am sure the German and French bankers will be happy to have their balance sheets blown out.
Thank you ...
http://washpost.bloomberg.com/story?docId=1376-LAGPV00D9L3501-3CS5T7V4QP69PC4BKK488Q9GLD
This is good news when 50% of your wealth is in silver.
Yes but who needs imported silver when Blythe can "manufacture" as much silver as she needs.
Until she can't. I can't wait till there is enough physical/industrial demand to totally wipe out the existing above ground supply, then I can watch my little pretties rocket upward. Blythe may be a wizard but she can't make the silver needed for industrial applications.
Thanks for the update on Portugal. Of course nothing in the US media being reported as usual.
I was in Lisboa a while back, nice city, good food. I always remember the towns South of the main river having Communist Hammer and Sickle emblems painted on the walls. Is it still that way?
Unfortunately yes.
The commies still rake in about 10% of the votes in the legislative elections, and they often win outright in local elections.
Yesterdays selloff has now been made up, The market opened pretty much flat and plowed higher. Yesterday was a head fake!
No doubt. Love shorting the inverse ETFs (although it has been hard to borrow QID). Ben has made this like taking candy from a baby.
Has life ever been better??? Has trading ever been easier??
Thank God for Ben Bernanke. And when he says "Fall markets, fall; then I shall be there as well, buying all of the inverse ETFs I can get my hands on.
Again, thank God for Ben Bernanke.
why wouldn't you just buy the corresponding long ETF. They're paired up.
Price. I can short the SDS at around 25% the cost of buying a share of the SPY. Right now it is about $27 for the SDS and $118 for the SPY. About a 4:1 leverage (at 2X the move) to short the inverse instead of buying the related long ETF.
So if the SPY goes up, the SDS goes down at twice the rate and I can capture the up move for less money.
Why stop at 2X? Why not go 3X +Marging and go "all in" Your confidence is sickening...
That's a great idea. My bad for not considering those instruments. Wonder if there are any 4,5 or even 10X instruments out there? Would be great tools in this $$ destroying frenzy the fed is on. Maybe one power of leverage for every instance of QE the fed is willing to unleash :)
I'll be looking at the UPRO and see if I can borrow. Seems at one point I was trying the 3X but consistently missed a trade because my broker didn't have/couldn't find them to lend.
Don't mean to sicken you, I am only trying to make money. Ben has been very helpful in that regard so here's hoping he gets another few terms.
Kudo's for the excellent suggestion. I, being a creature of habit, had overlooked this gem. I'm always pretty close to my limits on margin, so I don't have too much room there.
Thanks again. The virtual drinks are on me!
Think investing was never more easy.Just exchange paper for
real goods.Besides silver and gold ,I like good wines and wiskey
very much Real good invesments,and if it doesn't work out as
invesments I drink them myself.
rocket short covering....shorts are pussies. we are going to have one dinger of a pullback now ie this week
Maybe today the shorts capitulate?
when they wont let you short BAC...game over
Market has certainly come up with a big rally on no POMO juice.
How did that happen?
Yeah, and how can one claim there is not enough liquidity in the market.
Prices of fine middle class art have dropped a lot,
when they drop enough I will buy myself some
fine pieces.Real wealth,looks nice in the house.
Muscle cars were the fashionable "assets" (more like consumption trophies) five years ago.... When the high $ bidders lost interest, the speculators took a bath.
/es up 13.75, it seems like such a long time ago that it took some really outstanding financial news to move the markets like that. now its an everyday occurance.
Just think what would happen if Geithtner wanted a a lower USD
//sarcasm off
The monetizations will continue until....umm....i forget
The problem is cash liquidity.
Nobody wants to hold substantial cash positions. Hence the bond rally on lowest yields ever.
Now cash is looking for higher yield, more risk appetite and driving stocks higher.
Dividends of 5 to 10 percent are attractive. Stocks get bought up to the earnings report, dividends get paid out and then there's a stock sell off. That's what happened with AAPL.
No matter how hard I try to find it, I can't see this uptrend breaking down anytime soon. Now the US reports better growth than even Canada.
TODAY WAS A $6.6 BILLION POMO DAY. IT'S A TYPO, THEY PULLED THE SAME BULLSHT LAST TIME. ZEROHEDGE FIX THE TITLE OR ppl might actually think the rally today is actually LEGIT LOL it says
$550 million here http://i53.tinypic.com/50i93c.jpg but look at the next POMO date add
$5.5 billion to the total http://i56.tinypic.com/20tnkmu.jpg
Short gold. LOL
Makes sense really because it was TIPS today. NOBODY wants to sell TIPS back to the Fed because of the "IP" Inflation Protection! Fed bid 10B and 0.6B submitted = NO SELLERS. Dollar hammered and market up. Inflation coming.
Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic.
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