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Xtranormal Cartoon Explains POMO

Tyler Durden's picture


It was only a matter of time before someone finally explained it for the masses.


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Tue, 01/25/2011 - 16:24 | 903811 Turd Ferguson
Turd Ferguson's picture

me likes!

Tue, 01/25/2011 - 16:33 | 903852 doomandbloom
doomandbloom's picture

I think your video was better....master!:P

Tue, 01/25/2011 - 16:38 | 903876 Miss America
Miss America's picture

Can someone please please please do me a favor???

Can somebody calculate what the 2 scenarios of buybacks look like for a $6billion sample of 2 differing cusips? 

Sample 1, showing the POMO of one of the listed cusips that should be bought back.

Sample 2, showing the POMO of PM6 I can see what the Net vs Net for the brokers and the taxpayers/Gov't.

I would do the work myself, but I genuinely don't know how the calculations work.  (I can assume, and do my own math, but I'd hate to work with incorrect figures)

 I guess the way I see it is this: 

It still just amounts to a term Repo.  (as opposed to overnight repo, TD, CD, MMKT)

The Primarary Dealers who are borrowing at 0-ish rates, are just cashing in on the interest float they get...  and this float is the profit.  As to whether they profit/rape us on the higher or lower yielding T's seems minor in comparrison to the overall process of keeping the liquidy machine running. 

The buyback just funds the next auction?  Doesn't it?  (ya see...  my lack of knowing the official numbers and needing to see a sample of the 2 scenarios is why I keep thinking that I am missing something.)

Thanks in advance ZH society. 

All the best,

Rich H - Miss America

Tue, 01/25/2011 - 20:28 | 904490 Hulk
Hulk's picture

Show us your tits first...

Wed, 01/26/2011 - 01:02 | 905314 Miss America
Miss America's picture

I'll show you my tits once you show me you understand this.  Ya see, I get POMO conceptually.  ...and I think everone, thanks to blogs cartoons and other forms of education "get it"...  

...but who actually gets the different cusips that Zero Hedge has been harping on?  (I get the fact that the Fed should actually pull the worst performing bond off the market, but then that would be the Fed absolutely tipping their hand.  If they just pulled the worst 10 performers, market participants would actually demand them more, thus jacking up an already poor price to have to pay for them.  I suspect, volume/action on bonds might acyually be what drives things?  Cusip # 912828pc8 has been for the last 2 weeks the hottest treasury bond I've ever seen.  It's every other trade, it every other piece of collateral.  If they pulled that right now, there would be SOOOOOOOO many other thins that had to be unwound!)


So with that said, why does Zero Hedge keep harping on the specific cusips?  Can I please see just how much of a gain we're talking about over other cusips???


All the best,


Tue, 01/25/2011 - 17:44 | 904116 bonddude
bonddude's picture

except that room could use some flowers.

Tue, 01/25/2011 - 16:30 | 903812 hedgeless_horseman
hedgeless_horseman's picture

-So the Bernank must print money faster and faster just to stand still?



Awesome.  Plan accordingly.

Also, that gray chick is hot.  What an actress.  She has that special something where she would probably look really good in black, or even white, too.  Are there other pictures of her available on the internet?

Tue, 01/25/2011 - 18:16 | 904191 i.knoknot
i.knoknot's picture

couldn't find her on fecebook. hmmm.

still trying to place that sultry accent...

Tue, 01/25/2011 - 18:21 | 904205 ColonelCooper
ColonelCooper's picture

Her ass is perfect.

Tue, 01/25/2011 - 20:36 | 904500 FEDbuster
FEDbuster's picture

A camel toe would be a nice touch.

Tue, 01/25/2011 - 19:31 | 904357 DarkMath
DarkMath's picture

Argentina with a mix of Weimar Hoch Deutche.

Tue, 01/25/2011 - 18:41 | 904249 Betty Swallsack
Betty Swallsack's picture

Mmmm, chicks with glasses.

Wed, 01/26/2011 - 04:45 | 905520 Hephasteus
Hephasteus's picture

It's the chopsticks hair bun. Makes you want to search her for the nutrition lable.

Tue, 01/25/2011 - 16:24 | 903813 101 years and c...
101 years and counting's picture

about time.  ZH's explanations have been too complex for me to understand.


Tue, 01/25/2011 - 16:43 | 903891 NoLongerABagHolder
NoLongerABagHolder's picture

.... So the Treasury would seek special permission to purchase the debt on the open market; often the debt would be selling above par which meant that the Treasury had to buy it at a premium. For example in 1850, Secretary of the Treasury James Guthrie asked Congress for permission to buy government bonds on the open market to put some of these funds back into circulation; permission was granted and he paid as much as a 21 percent premium to help avert a banking panic (Stabile and Cantor 1991)


So 160 years later we are doing the same thing - quit worrying that it will somehow cause the collapse of our country.....

Tue, 01/25/2011 - 17:01 | 903962 dick cheneys ghost
dick cheneys ghost's picture

the big banks are insolvent. 

Tue, 01/25/2011 - 16:25 | 903815 Cognitive Dissonance
Cognitive Dissonance's picture

While the cartoon touched on the Bernanke isn't "printing money" issue, I wish it had just come out and said that Bernanke doesn't physically "print" money, but instead just creates electronic ones and zeros.

Tue, 01/25/2011 - 16:38 | 903872 SheepDog-One
SheepDog-One's picture

And 'BTFD', although these days the dip buyers must all have balls of steel, hockey helmets, and a bottomless Xanax scrip.

Tue, 01/25/2011 - 17:02 | 903963 Weaseldog
Weaseldog's picture

Do you still find people that don't know the difference?

Tue, 01/25/2011 - 17:13 | 904003 Cognitive Dissonance
Cognitive Dissonance's picture

I still find people that don't know......period.

Tue, 01/25/2011 - 17:31 | 904060 KickIce
KickIce's picture

But they are printing money as they still need to meet payrolls, finance wars and pay for unfunded liabilities.

Tue, 01/25/2011 - 17:34 | 904070 Weaseldog
Weaseldog's picture

Bingo. Dollars in paper or binary digits is still money.

Tue, 01/25/2011 - 17:43 | 904103 KickIce
KickIce's picture

They are actually printing money.  We 110 billion in misprinted $100s a short time ago.  Good Lord only know how much there is in circulation.

Tue, 01/25/2011 - 16:45 | 903903 Cognitive Dissonance
Cognitive Dissonance's picture

As usual, nice charts.

Tue, 01/25/2011 - 17:18 | 904016 Gaston
Gaston's picture

Very nice, Ty for that.

Tue, 01/25/2011 - 18:53 | 904280 Amish Hacker
Amish Hacker's picture

Those who are about to die salute you.

Tue, 01/25/2011 - 16:28 | 903833 RowdyRoddyPiper
RowdyRoddyPiper's picture

Where is our Sir Galahad to slay this evil dragon?

Tue, 01/25/2011 - 17:47 | 904125 blobbus
blobbus's picture

Being serviced by Zoot?

Tue, 01/25/2011 - 16:31 | 903844 Prof Gulliver
Prof Gulliver's picture

The masses only likes the bears.

Tue, 01/25/2011 - 17:38 | 904089 small watcher
small watcher's picture

Sometimes, the masses likes the green bay.

Tue, 01/25/2011 - 18:37 | 904244 jakethesnake76
jakethesnake76's picture

Beautiful hahaha

Tue, 01/25/2011 - 18:43 | 904257 Boxed Merlot
Boxed Merlot's picture

Maybe so, but wouldn't it be entertaining to see Urlacher go head to head against Mostly Fraud and Rahm's trash talkin in the big game. He's been there over a year hasn't he? How about getting a few 300# union thugs to carry banners for him and march down to the court house?

Tyler: If you could fight anyone, who would you fight?
Narrator: I'd fight my boss, probably.
Tyler: Really?
Narrator: Yeah, why? Who would you fight?
Tyler: I'd fight my dad...

Tue, 01/25/2011 - 16:31 | 903845 DaddyO
DaddyO's picture


She should have let her her down and taken off her glasses, the effect would have been a bright spot in the bad news she was delivering. She could definitely star in xtranormal porn, yes?


Tue, 01/25/2011 - 16:59 | 903955 Arthur Two Shed...
Arthur Two Sheds Jackson's picture

Of course.

You never know what these characters are capable of.

Tue, 01/25/2011 - 16:34 | 903854 MonsterZero
MonsterZero's picture

Ehhh leaving out interactions between the Fed and the Treasury kind of kills it for me.  Could have been better, as their last few videos could have been.  Riding the wave out to sea I guess.

Tue, 01/25/2011 - 16:35 | 903860 johny2
johny2's picture

Have a nice daay :)

Tue, 01/25/2011 - 16:36 | 903865 bankonzhongguo
bankonzhongguo's picture

So simple, even an American may understand it.

Then again...

Tue, 01/25/2011 - 16:36 | 903866 dick cheneys ghost
dick cheneys ghost's picture

its because the banks are insolvent not because they are to big. kill the banks now and we can heal..................


Tue, 01/25/2011 - 16:58 | 903953 Arius
Arius's picture

how about both - too big and insolvent...a much bigger mess

Tue, 01/25/2011 - 16:37 | 903869 hambone
hambone's picture

I prefer my bad news from cuddly, fuzzy, colorful creatures.

Tue, 01/25/2011 - 17:04 | 903969 willien1derland
willien1derland's picture

+1,000 Hambone - The 'Bernack' Care Bear dressed like a Pimp - WB - you could knock this cartoon out of the park - Thanks Tyler Great Post

Tue, 01/25/2011 - 16:37 | 903870 Cocomaan
Cocomaan's picture

What does she mean when she says that everything needs to keep growing?

Tue, 01/25/2011 - 16:39 | 903878 hambone
hambone's picture

Ponzi's require exponential growth to be maintained.

Tue, 01/25/2011 - 16:40 | 903883 Cocomaan
Cocomaan's picture

Thanks. A much more elegant explanation.

Tue, 01/25/2011 - 17:27 | 904046 the grateful un...
the grateful unemployed's picture

thats a veiled reference to the thing in his pants. for econ porno there is way too much plot and not enough skin (well avatar skin anyway)

Tue, 01/25/2011 - 16:38 | 903873 buzzsaw99
buzzsaw99's picture

Best video evah!!

Tue, 01/25/2011 - 16:43 | 903893 SheepDog-One
SheepDog-One's picture

The 'financial system' is now far bigger and more dangerous than the old military/industrial simply exists to perpetuate itself ever larger, and it doesnt matter how many millions need to starve as long as the Beast grows.

Tue, 01/25/2011 - 16:44 | 903894 hambone
hambone's picture

3...2...1...waiting for final blast off to end the day in green so the teleprompter-in-chief can claim investors and consumers have regained confidence w/out an asterik.

Wait for it...should be vertical.

Tue, 01/25/2011 - 16:50 | 903924 plocequ1
plocequ1's picture

10-4 Good buddy. Operation POMO success. Over and out

Tue, 01/25/2011 - 16:55 | 903939 hambone
hambone's picture

C' know it has to close green or mixed at worst.

Wow - it's a centrally planned illusionary "market"...Chipetto pulls the strings and she dances.  No third world banana republic has anything on us!!!

Tue, 01/25/2011 - 16:48 | 903913 John McCloy
John McCloy's picture

Criminal Dow moves today.

Tue, 01/25/2011 - 16:50 | 903925 pistachio
Tue, 01/25/2011 - 16:55 | 903935 BennyBoy
BennyBoy's picture

Oh please, that's not how POMO works.

The FED would never screw the american taxpayer by favoring the behemouth banks that just happen to own shares in the FED. Especially in the FRBNY.


Maybe I better get on the horn with Frost and Sack and have them explain it to me one more time. This time slowly.


Tue, 01/25/2011 - 16:57 | 903947 Threeggg
Threeggg's picture

Look at that ramp up ......NICE !

I thought this fitting

from Rush:

The trouble with the maples,
(And they're quite convinced they're right)
They say the oaks are just too lofty
And they grab up all the light.
But the oaks can't help their feelings
If they like the way they're made.
And they wonder why the maples
Can't be happy in their shade.

There is trouble in the forest,
And the creatures all have fled,
As the maples scream "Oppression!"
And the oaks just shake their heads

So the maples formed a union
And demanded equal rights.
"The oaks are just too greedy;
We will make them give us light."
Now there's no more oak oppression,
For they passed a noble law,
And the trees are all kept equal
By hatchet, axe, and saw.

Tue, 01/25/2011 - 17:06 | 903967 plocequ1
plocequ1's picture

Excellent song. Listen to Exit stage left. It has Broones Bane, The trees and Xanadu all on one side live. Rush at their glorious peak.

Tue, 01/25/2011 - 17:36 | 904079 MsCreant
MsCreant's picture

Took me a second, thought he meant Rush Limbaugh...

Wed, 01/26/2011 - 02:07 | 905407 Hook Line and S...
Hook Line and Sphincter's picture

The Alex Jones fans are listening to Red Barcheta

Wed, 01/26/2011 - 04:37 | 905519 Hephasteus
Hephasteus's picture

In before the peak rush haters.

Tue, 01/25/2011 - 18:54 | 904282 Shell Game
Shell Game's picture

Aaah, thank you for that wonderful reminder..

Tue, 01/25/2011 - 20:59 | 904546 Hammer Down
Hammer Down's picture

Those cats were prophetic, or at least those who inspired them were - Red Barchetta, 2112 (Temples), Trees

Tue, 01/25/2011 - 17:01 | 903960 molecool
molecool's picture

Okay, call me old fashioned but why doesn't someone just sit down and actually use a camera to film two people discussing this? You know - in the real world? These mechanical vids are kind of getting old...

Tue, 01/25/2011 - 17:04 | 903970 Weaseldog
Weaseldog's picture

That would take more than the five minutes it took me to write the script, and someone else would've beat me to it with and XTraNormal Vid. :)

Tue, 01/25/2011 - 17:05 | 903973 Weaseldog
Weaseldog's picture

Feel free to do that, just give me the writing credit. :)

Tue, 01/25/2011 - 17:09 | 903991 hambone
hambone's picture


I'll take the flip side and why doesn't someone stand up, stop discussing this, and do something about this???

This is no different than someone coming in your home, at will, and taking what they like.  You've no voice in the matter.  The lords and nobles make up the "rules" and enforce the "rules".  This is criminal (in the previous sense of criminal meaning when something fell outside the agreed conduct set by the constitution and citizens). 

Tue, 01/25/2011 - 17:32 | 904065 the grateful un...
the grateful unemployed's picture

ron paul is supposed to do something about it, until his party was no longer in the minority. (see headlines, GOP taking credit for economic recovery) the Fed helps the incumbency, its a perfect setup, while they're out of power they can cry for your blood, but once they're in a position to do something, you provide it to them, type O+ (universal donor)

Tue, 01/25/2011 - 18:24 | 904217 ColonelCooper
ColonelCooper's picture



Tue, 01/25/2011 - 18:22 | 904208 Diogenes
Diogenes's picture

"I'll take the flip side and why doesn't someone stand up, stop discussing this, and do something about this???"


Such as? The public has already tried voting the bastards out, writing letters cards and emails, phoning, holding protest meetings and marches, organizing the Tea Party, crashing an airplane into a public building and even shooting a politician in Arizona. Nothing seems to help.

Tue, 01/25/2011 - 17:08 | 903986 hardcleareye
hardcleareye's picture

"Rest in the arms of the Dragon"....  "it's going to eat you anyways.."  that's very good.


Tue, 01/25/2011 - 17:27 | 904034 hambone
hambone's picture

Yes, by all means, enjoy your rapist enjoying you, enjoying your loved ones???  You're fucked either way.

No, I think not.  Some things cannot be tolerated.  I just hope enough catch up to my level of outrage to make a damn.

Tue, 01/25/2011 - 17:09 | 903990 gwar5
gwar5's picture

Yeah, that was good. 

No bananas in sight


Tue, 01/25/2011 - 17:16 | 904009 Hang The Fed
Hang The Fed's picture

LOL...and people wonder why I haven't quit smoking and drinking.  Either the Bernanke gets my soul, or the devil does.  A vacation in Hell doesn't sound so bad compared to this level of foolishness. 

Tue, 01/25/2011 - 17:26 | 904044 mt paul
mt paul's picture

she's a hottie..

Tue, 01/25/2011 - 17:36 | 904080 Lady Heather...UNCLE
Lady Heather...UNCLE's picture

Hambone...I'll see your outrage...and raise you. My apoplexy is severely deleterious to my normal every day functioning...damn I hate those red pills!!


Tue, 01/25/2011 - 17:42 | 904101 smlbizman
smlbizman's picture

i have come to realize that it is impossible to run my 20 yr old blue collar business and than have enough time to feed my current addiction of staying current on the info that my master  "the 'hedge " {yes they have earned the right to be of single name},feels i must have. so the only rationale thing to do, is to close our doors forever. so effective immediately our new  5  day work week will consist of the following activities:.

1-morn} process all info or keeping the hedge trimmed

2-lunch} buy pm's

3-springer} do not disturb



Tue, 01/25/2011 - 18:12 | 904184 Timmay
Timmay's picture

Too Big to Fail is now...


Too big to shrink

Tue, 01/25/2011 - 18:16 | 904193 whatz that smell
whatz that smell's picture

praise be the bernank! may he ease a thousand years!

Tue, 01/25/2011 - 20:00 | 904417 jackplata
jackplata's picture

Buy the dip in PM

Tue, 01/25/2011 - 20:11 | 904450 eatthebanksters
eatthebanksters's picture

What should we bags of rice and dried beans and put them in safe storage....oil your firearms and BUY MORE AMMO!!!

Tue, 01/25/2011 - 20:51 | 904521 FEDbuster
FEDbuster's picture

Brass and lead, before silver and gold.  You can NEVER have too much ammo. 

Beans and rice are nice, but think oatmeal and honey (lasts longer and tastes better).  Safe drinking water is important, too.

Tue, 01/25/2011 - 20:28 | 904488 Audible
Audible's picture

Theoretically speaking a large enough group of politicians enter into the system with the purpose of reversing/dismantling/destroying this process, what would be the designed course of action?

Wed, 01/26/2011 - 10:16 | 905841 Weaseldog
Weaseldog's picture

The first priority should be to uphold the rule of law.

Wed, 01/26/2011 - 12:39 | 906258 Winston Smith 2009
Winston Smith 2009's picture

One of these days, the people who make these will realise that they need to spell Bernanke's name something like "Bernankey" to actually get it pronounced correctly.

They also need to explain the part about the TBTF banks being so large that they can no longer make a profit using conventional business models.  I don't understand that one myself.

Wed, 01/26/2011 - 16:00 | 906913 i.knoknot
i.knoknot's picture

my take on that was that today's norms (as distorted as they are by historic measure - debt/leverage, etc.) aren't working anymore... gotta find a new scam, i suppose, or perhaps have the senate legislate one for us.

FWIW, i kinda like 'the burnank' and 'the gytner' (mis)pronunciation. kinda like 'the borg'

Thu, 01/27/2011 - 02:22 | 908646 Weaseldog
Weaseldog's picture

I first heard the names pronounce that way on an XtraNormal Cartoon. It may have been one that Tyler created.


It seemed to me to be institutional sounding. I liked it. So i copied it.


Now in causal conversations with humans, I refer to him, a the Bernank. No one blinks.

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