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Fed Pre-Monetizes 30 Year Bond To Be Reauctioned Off Tomorrow

Tyler Durden's picture




 

Steven Spielberg gave us Pre-Crime; Ben Bernanke gave us Pre-Monetization. Moments ago, as part of today's concluded $1.464 billion market funding POMO operation, one of the issues purchased by the Fed was the 30 year Treasury identified as CUSIP 912810QZ4.

Why is this CUSIP interesting? Because at 1:00 pm tomorrow, the US Treasury will issue $13 billion in the form of a 29 year 11 month bond reopening. The CUSIP of the issue: 912810QZ4.

Because the only thing better than monetizing the US debt is, well, pre-monetizing the US debt.

The best part: The NY Fed's market-making (literally) desk at Liberty 33 didn't even have to pass 88 MPH.

 

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Wed, 03/13/2013 - 11:16 | 3325951 Popo
Popo's picture

Tyler, FYI

Today's latest from the always entertaining Mr. Farage

http://www.youtube.com/watch?v=V72mZCDwmY0

Wed, 03/13/2013 - 11:26 | 3326000 yogibear
yogibear's picture

Liar. He perjured himself. He needs to do some time with Bubba.

Wed, 03/13/2013 - 11:32 | 3326023 JackT
JackT's picture

Seems the aution tomorrow is $2m lighter than the pre-monitzation of the today?

Wed, 03/13/2013 - 11:40 | 3326058 Cognitive Dissonance
Cognitive Dissonance's picture

The daily vig.

Wed, 03/13/2013 - 11:54 | 3326102 BeerBrewer09
BeerBrewer09's picture

Someone please explain what this actually means...

Is this completely new (not built-in) issuance?

Are they just assuming (not very hard to) that the FED is making the purchase at this point?

Wed, 03/13/2013 - 11:59 | 3326116 I am more equal...
I am more equal than others's picture

Preposterous predetermined premonetization

Wed, 03/13/2013 - 11:42 | 3326066 Troll Magnet
Troll Magnet's picture

FUCK YOU AND YOUR SHALOM, MOTHERFUCKER!!!

Wed, 03/13/2013 - 11:31 | 3326024 McMolotov
McMolotov's picture

It's true that he lied, but at least it wasn't about something truly important like steroid use in baseball.

Wed, 03/13/2013 - 11:33 | 3326028 CH1
CH1's picture

He perjured himself. He needs to do some time with Bubba.

Right, and where is Jon Corzine these days?

Bankers don't go to jail. The politicians are far too reliant on them.

The system will NOT be fixed.

Wed, 03/13/2013 - 12:15 | 3326166 machineh
machineh's picture

The Bernank might want to pre-monetize his retirement, since he's out of his ear when his term ends next January.

You know he's leaving, because the Federal Reserve is poised to lose up to $500 billion as rates rise, leaving it INSOLVENT.

Nice work, Ben! What are you going to destroy as an encore -- civilization?

Wed, 03/13/2013 - 13:18 | 3326375 DeadFred
DeadFred's picture

Hang in there. The reset starts this year.

Wed, 03/13/2013 - 14:43 | 3326810 DavidC
DavidC's picture

Which is why it WILL break.

DavidC

Wed, 03/13/2013 - 11:52 | 3326092 SkottFree
SkottFree's picture

No its called executive privilege so it can not be a lie!

Wed, 03/13/2013 - 12:13 | 3326155 God Bless The V...
God Bless The Virtuous's picture

Yeah Yogi,

right in the big house!

This scumbag has a set of balls on him even Slick Willy envy's!

Bernanke, destroyer of MIDDLE CLASS working Americans!

Rot in hell you prick!

Wed, 03/13/2013 - 11:30 | 3326018 sansnobel
sansnobel's picture

And his european scum counterparts are on record saying " When it's serious, you have to LIE"  This man is nothing more than a common cockroach.    A discredit to the honest Jooos of the world. 

Wed, 03/13/2013 - 11:51 | 3326049 michael_engineer
michael_engineer's picture

I suspect that the "when it's serious you have to lie" and the "doing God's work" phrases were both bandied about in the same top level meeting of the WFed and the banking execs when they discussed how to handle the crises/predicaments facing people.

Am I right Ben?

So in summary, it' ok to lie if you think you are doing God's work.

Sounds like the same faulty reasoning many ex spouses use when they pervert justice and betray the truth, themselves, and others.

Religion is supposed to put a break on and curb sociopathic rationales like this. It would seem ironic and hypocritical for religion to be used as a justification/rationale of sociopathic actions.

Wed, 03/13/2013 - 11:56 | 3326105 mick_richfield
mick_richfield's picture

When they lie they are indeed doing their god's work.  Or at least -- the work of some divine being.

It's just not the divine being you are thinking of when you say 'God'.

 

Wed, 03/13/2013 - 12:17 | 3326176 machineh
machineh's picture

Their god has cloven hooves.

Pleased to meet ya, hope you guessed my name ...

Wed, 03/13/2013 - 11:42 | 3326063 madbraz
madbraz's picture

Europeans were taught the "Larry Summers school of thought" that you need to lie, lie, lie to get market confidence up.  This wisdom was probably passed by Geithner, on one of his many trips and phone calls to Europe in 2011.  That's why a great majority of our economic data is now rigged, as Obama has put Robert Rubin puppets in key places such as the Treasury, BLS etc.  No coincidence that economic data went from terrible on October 2012 (gasp, right before elections!) to wonderful shortly thereafter - a miracle!  No wonder Hilda Solis "suddenly" left the BLS to be replaced by a new shill...

 

Do you believe for a minute the GDP and industrial production numbers in Europe (not to mention the German "confidence" indexes, what a UMich joke!) when car sales in France and Germany now are 10% below year ago levels?  I guess the shyster "investors" JPM, GS et all do... 

Wed, 03/13/2013 - 11:41 | 3326064 DaveyJones
DaveyJones's picture

it did fall flat

Wed, 03/13/2013 - 13:20 | 3326383 insanelysane
insanelysane's picture

How did they know on March 7th that they would own this specific ID that they didn't buy until March 13th?  </sarc>

Wed, 03/13/2013 - 11:22 | 3325988 sotto
Wed, 03/13/2013 - 11:16 | 3325956 the iD
the iD's picture

your jacket is now dry!

Wed, 03/13/2013 - 11:18 | 3325957 Gordon_Gekko
Gordon_Gekko's picture

;-)

Wed, 03/13/2013 - 12:08 | 3326142 Bay of Pigs
Bay of Pigs's picture

No doubt Gordo. All we can do is smile at the absurdity of the situation.

FUBAR...

Wed, 03/13/2013 - 11:18 | 3325962 drbill
drbill's picture

When you can't print money fast enough today, you simply print it yesterday as well as today. The possibilities are truly mind blowing!

Wed, 03/13/2013 - 11:25 | 3325997 TheAlchemist
TheAlchemist's picture

I'll gladly trade you a bond today for fiat on Tuesday...

Wed, 03/13/2013 - 11:33 | 3326030 optimator
optimator's picture

The money isn't printed, they wire money they don't even have.

Wed, 03/13/2013 - 11:18 | 3325965 pan
pan's picture

How currency is made, bitchez!

Wed, 03/13/2013 - 11:18 | 3325966 Spastica Rex
Spastica Rex's picture

Philip K. Dick gave us "pre-crime." Stephen Spielberg gave us 1941.

Wed, 03/13/2013 - 11:23 | 3325989 bigwavedave
bigwavedave's picture

You got me by 2 seconds :-) fucking wank Speilberg couldn't lick Dick's balls

Wed, 03/13/2013 - 11:25 | 3325999 Tyler Durden
Tyler Durden's picture

"A seasonally-adjusted Philip K. Dick = Steven Spielberg"

- BLS

Wed, 03/13/2013 - 11:28 | 3326003 bigwavedave
bigwavedave's picture

Gotta love a guy who admits he is wrong eh?

Wed, 03/13/2013 - 18:06 | 3327741 MisterMousePotato
MisterMousePotato's picture

If that girl got a back scratcher, she wouldn't have to scratch her back on a tree.

Wed, 03/13/2013 - 11:35 | 3326037 shovelhead
shovelhead's picture

Ok. That was funny.

Wed, 03/13/2013 - 11:48 | 3326078 DaveyJones
DaveyJones's picture

Do Drones Dream of Complacent Sheep?

Wed, 03/13/2013 - 12:13 | 3326159 Orly
Orly's picture

Good one.

Let's not forget that Minority Report was a pretty good flick.  I think Mr. Mapother's best acting job to date.

:D

Wed, 03/13/2013 - 12:20 | 3326192 tarsubil
tarsubil's picture

Funny thing. Deckard and I turned out to be replicants.

Wed, 03/13/2013 - 12:40 | 3326263 Orly
Orly's picture

More human than human is our motto...

Wed, 03/13/2013 - 11:30 | 3326019 medium giraffe
medium giraffe's picture

On a long enough timeline, everything turns to kipple.

Wed, 03/13/2013 - 11:39 | 3325967 Mercury
Mercury's picture

Who came up with this idea Jamie Dimon?  What are the chances that the WI seller covers higher? I'm guessing zero.

Let's see...printing dilutive money to buy non-existent debt for an indefinite time period to manipulate the price of money downward before the first leg of the trade causes the opposite outcome.


I think this is the synthetic equivalent of being short the USA on a when-issued basis but I have to check the math...

Wed, 03/13/2013 - 12:49 | 3326295 eclectic syncretist
eclectic syncretist's picture

Jamie Crimin, Lloyd Blankheart, Ben Schlong Bernanke, who gives a fuck who came up with the idea.  Jail the motherfucker for crimes against humanity.

Wed, 03/13/2013 - 11:23 | 3325968 Cognitive Dissonance
Cognitive Dissonance's picture

"Fed Pre-Monetizes 30 Year Bond To Be Reauctioned Off Tomorrow"

Pre-Crime a la Minority Report?

<Besides Tyler, it's already March 14th somewhere in the world.....right?>

Wed, 03/13/2013 - 11:19 | 3325972 Everybodys All ...
Everybodys All American's picture

When will the bond vigilantes decide enough is enough?

Wed, 03/13/2013 - 11:22 | 3325984 hedgeless_horseman
hedgeless_horseman's picture

 

 

Extinct.  They all drowned in the great (currency) flood.

Wed, 03/13/2013 - 11:20 | 3325976 bigwavedave
bigwavedave's picture

Tyler. Please issue a retraction. Philip K. Dick gave us Pre-Crime not some sugar coated piss-ass movie director.

Wed, 03/13/2013 - 12:19 | 3326191 machineh
machineh's picture

Schpielberg gave us Lincoln, who gave us greenbacks.

Wheel in the sky keeps on turnin' ...

Wed, 03/13/2013 - 11:21 | 3325979 Cdad
Cdad's picture

The only thing left to be revealed in this never ending financial crime wave, this full on assault against the free market by Ben Bernanke, is...as you have suggested many times Tyler...for the Federal Reserve to announce the S&P closing levels at the opening bell.

This is a complete financial market wasteland.  Thank you Ben Bernanke, Washington DC, and criminal Wall Street syndicate.   

Wed, 03/13/2013 - 11:22 | 3325986 SilverMaples
SilverMaples's picture

Now preventive QE interventions in fear of mass plunge destruction.

Wed, 03/13/2013 - 11:23 | 3325990 madbraz
madbraz's picture

These criminals and their banking "directors" schedule the heaviest POMO volume and 10yr and 30yr bond auctions ALWAYS on Wednesday and Thursday of options expiration week.  They could put it on any day of the month, but no, they blatantly and arrogantly schedule them for the day when they can get the most bang for their own buck  - for all intents and purposes confirming that manipulation is the name of their game.

 

When will someone step up and put an end to these gangsters rape of the american people?

 

 

Wed, 03/13/2013 - 11:25 | 3325993 The Invisible Foot
The Invisible Foot's picture

QE4eva does mean forever.(Until it isn't)

Wed, 03/13/2013 - 11:27 | 3326002 medium giraffe
medium giraffe's picture

Complete the following puzzle:

F___ Y__ B_______

Wed, 03/13/2013 - 11:29 | 3326012 CaptainSpaulding
CaptainSpaulding's picture

Hmmmm.. For your business?

Wed, 03/13/2013 - 11:36 | 3326013 Abraxas
Abraxas's picture

(Printing) For Your Benefit?

Wed, 03/13/2013 - 11:30 | 3326017 SokPOTUS
SokPOTUS's picture

Fiscal Year Bonuses.

("F*ck You Bernanke" was too obvious)

Wed, 03/13/2013 - 11:35 | 3326040 McMolotov
McMolotov's picture

Fart Yam Balloon

Wed, 03/13/2013 - 11:57 | 3326084 medium giraffe
medium giraffe's picture

  

 

 

 _________
    |         |
    |         0
    |        /|\
    |        / \
    |
    |

Wed, 03/13/2013 - 12:22 | 3326200 resurger
resurger's picture

:)

Wed, 03/13/2013 - 12:22 | 3326202 machineh
machineh's picture

The cool thing is, the NSA's all-seeing computers can't parse simple typography art.

They're smarter than the average amoeba ...

Wed, 03/13/2013 - 11:53 | 3326096 Fishthatlived
Fishthatlived's picture

Filling Your Boots

 

Wed, 03/13/2013 - 15:40 | 3327143 Bansters-in-my-...
Bansters-in-my- feces's picture

FreeYourBalls

 

Wed, 03/13/2013 - 11:28 | 3326005 madbraz
madbraz's picture

If this is not collusion, then I don't know what is.

 

They are buying back a security before they know it's price!  How can they claim that they pay "fair value" and that this deal is transparent?

 

At the very least, they should buy back securities from anyone, including direct and indirect owners that participate in auctions.

Wed, 03/13/2013 - 11:28 | 3326009 SokPOTUS
SokPOTUS's picture

Yikes.  Are the Primary Dealers having a serious liquidity crunch that no one has told us about?  I don't like the smell of this.

Earth-shattering Ka-Boom on deck, if so.

Crash-positions, folks.

 

Wed, 03/13/2013 - 11:40 | 3326057 gatorengineer
gatorengineer's picture

There is now only one primary dealer, and one primary buyer, both entities of the USG.....

Wed, 03/13/2013 - 11:32 | 3326014 michael_engineer
michael_engineer's picture

Pre monetizing is a sign that we have left the blade of the proverbial hockey stick far behind and are now rising up the handle so fast that we are about to go flying off the handle.

Look for the 85 billion a month to increase soon.

Wed, 03/13/2013 - 11:35 | 3326039 jeebus
jeebus's picture

I hope so. I'm patient, but, the sooner the better I think. Can kicking will only increase the pain later.

Wed, 03/13/2013 - 11:54 | 3326099 chdwlch1
chdwlch1's picture

Pre-hypothication? Time Bandits anyone?  Is Bernanke the new "Supreme Being"? What a crock of shit!!!

Wed, 03/13/2013 - 12:24 | 3326211 Orly
Orly's picture

The Adventures of Baron Munchausen.

Much better movie.  A classic, I'd say...Bertholdt!

http://www.imdb.com/title/tt0096764/

:D

Wed, 03/13/2013 - 11:30 | 3326015 InconvenientCou...
InconvenientCounterParty's picture

Without more global conflict and fear, the dollar bubble will soon rupture. Where is Dick Cheney when we need him?

Wed, 03/13/2013 - 11:47 | 3326083 toys for tits
toys for tits's picture

 

 

You're right, Kim Jong Un is trying but apparently he's no Dick.

Wed, 03/13/2013 - 11:50 | 3326089 McMolotov
McMolotov's picture

He's probably recharging his robo-heart so he'll be full of energy when he shoots his friend in the face later this afternoon.

Wed, 03/13/2013 - 11:31 | 3326021 Decimus Lunius ...
Decimus Lunius Luvenalis's picture

So the chicken really did come first? 

Wed, 03/13/2013 - 11:32 | 3326026 Stonedog
Stonedog's picture

What in the name of all that's holy?

Wed, 03/13/2013 - 11:35 | 3326038 WTF_247
WTF_247's picture

Where can I get in on this action?  I would love to buy 50bil of bonds with a guaranteed profit the next day.   I would gladly scale up to 1T if anyone has the dough to loan out ....

Wed, 03/13/2013 - 11:37 | 3326043 Lewshine
Lewshine's picture

TYLER,

Why do you use terms like; "Monetizing the debt"?? Call it and keep it simple, so that every azzwipe consumer gets it - Cash for banks to levitate stocks...Period! The average US space waster doesn't know monetizing from mamograms...Think, Steve Liesmen or Bob Pisani!! We would all be better off if we quit using the borrowed language of finance.

 

 

Wed, 03/13/2013 - 11:54 | 3326100 DaveyJones
DaveyJones's picture

monetizing is more like breast implants than mamograms

Wed, 03/13/2013 - 12:04 | 3326124 medium giraffe
medium giraffe's picture

Pre-monetizing breast implants today, designer vagina bonds tomorrow.

Wed, 03/13/2013 - 11:38 | 3326047 yogibear
yogibear's picture

The Fed emperor (Bernanke) has no clothes.

The Fed advised Japan, now it's blowing up. 

Wed, 03/13/2013 - 11:42 | 3326062 the grateful un...
the grateful unemployed's picture

and now Japans utilities are hiking rates, (the US will follow them into a stagflationary hole - remember the 70s!)

Wed, 03/13/2013 - 12:29 | 3326229 Orly
Orly's picture

That's why the yen pairs have to come off.  Too much, too soon.

USDJPY to 90, then a nice, slow and relaxed ramp back to 115.

:D

Wed, 03/13/2013 - 11:38 | 3326048 Downtoolong
Downtoolong's picture

Front running to the third power. Or maybe it's Front Running Of The Third Kind (more Spielberg plagiarism). Or maybe the Fed is Exploratory Trading like those HFT scumbags in search of a way out of the disaster, also known as the Fed Balance Sheet. Who says the Fed isn't creative. But, it's a sad state of affairs when you have to try and outsmart the TBTF banks who are supposed to be helping you solve the problem that they created in the first place.

Only one acronym sticks in my mind from all this: SNAFU.

Wed, 03/13/2013 - 12:26 | 3326218 machineh
machineh's picture

Fannie and Freddie blew up.

Third one's the charm: Feddie FUBAR.

When foreign central banks start cashing out the $3.3 trillion custody account, no one can hear Ben scream.

Wed, 03/13/2013 - 11:39 | 3326053 the grateful un...
the grateful unemployed's picture

yeah its time to get Congress involved, this front running has got to stop, even if it is a devious way to tax people who otherwise don't want to pay their taxes. we are heading for the moment when bond buyers will paying more than the coupon just for the privilege of holding their paper.

Wed, 03/13/2013 - 11:43 | 3326069 InvestmentMind
InvestmentMind's picture

You can't make this shit up.

Broken record, but still....

This site makes me truly laugh out loud more than anything else on the internet.

 

Wed, 03/13/2013 - 11:46 | 3326075 Inthemix96
Inthemix96's picture

Un-fucking believable.

Let me tell you this bernank, when the time comes you nefarious little fucking shit, you are dead, as in torn a-fucking-part.

Too many people know the truth now you poisened cunt of a whore.

I look forward to seeing your lifeless body on the evening news you hateful dwarf twat.

Wed, 03/13/2013 - 12:28 | 3326228 machineh
machineh's picture

Clearly your intentions are good. But must you sugar-coat everything? ;-)

Wed, 03/13/2013 - 13:00 | 3326326 optimator
optimator's picture

He'll manage a getaway when he's ready, remember, he has two passports.

Wed, 03/13/2013 - 11:46 | 3326081 Hubbs
Hubbs's picture

In other words

 

 

Government to the FED...

 

"Will you just hurry up and give us the fucking money now???"

Wed, 03/13/2013 - 11:51 | 3326091 DaveyJones
DaveyJones's picture

pre-capitalism

pre-democracy

Wed, 03/13/2013 - 12:30 | 3326234 machineh
machineh's picture

pre-feudalism

on your knees, serf!

Wed, 03/13/2013 - 11:55 | 3326104 icanhasbailout
icanhasbailout's picture

Supernanke can monetize at the speed of perjury!

Wed, 03/13/2013 - 11:57 | 3326112 Son of Loki
Son of Loki's picture

WTF?!

Wed, 03/13/2013 - 12:00 | 3326119 youngman
youngman's picture

Don´t you wish you knew the whole truth..at what is really going on....I do....but all we get now are bits and pieces of facts we have to dig to find out....it is us vs them....

Wed, 03/13/2013 - 12:03 | 3326128 PaperBear
PaperBear's picture

The system is beyond repair.

Wed, 03/13/2013 - 12:24 | 3326204 youngman
youngman's picture

It is a system now..an entity on its own... would love to learn how it works from the fly on the wall perspective...they have to have meetings to think this stuff up....actionable stuff....and they have to agree to it..and discuss the pros and cons I would think...there has to be some employees sweating over there..knowing what they are doing is borderline wrong...or blatently wrong...but those guys left already I think..or were fired...only the yes men are still working there....its criminal now...their end game is suspect at least...I hope they have one...I think they think they do...I do not think they will succeed..they are just buying time...time for what????  the world to go into 6% annual GDP´s....good luck...these Central bankers have to be able to see other countries balance sheets to see that to much spending and not enough income is happening...all across the western world almost....and that is not good....if inflation is their end game...then that has its food problems....lots of starving people will come out of it...I would not want to be a part of that...my legacy of killing people just so some banker does not lose a penny...

Wed, 03/13/2013 - 12:17 | 3326178 ZippyBananaPants
ZippyBananaPants's picture

anyone know where I can go to learn about all the info on the public debt news (above) like why the original issue date is Feb 15th and they are being sold tomorrow?  Do they get the interest from feb 15 to tomorrow?  

Thanks in advance.

Wed, 03/13/2013 - 12:32 | 3326240 machineh
machineh's picture

Yes. Actually the Treasury's site is quite good:

http://www.treasurydirect.gov/RI/OFAuctions?form=histQuery

This is probably a re-opening of a previous issue. They do that frequently.

Wed, 03/13/2013 - 12:34 | 3326249 machineh
machineh's picture

Here's the announcement:

http://www.treasurydirect.gov/instit/annceresult/press/preanre/2013/A_20...

It's a re-opening. Accrued interest starts with the March 15th issue date for the re-opened bond.

Wed, 03/13/2013 - 12:23 | 3326208 resurger
resurger's picture

He wont rais interest rates till 2015! ofc you wont..

Wed, 03/13/2013 - 12:28 | 3326225 Seasmoke
Seasmoke's picture

Get to Work Bernanke........Yesterday !

Wed, 03/13/2013 - 12:31 | 3326239 ziggy59
ziggy59's picture

So why does anyone, other than the cos. that don't , pay their taxes at all? Other than to enslave the masses with a tax burden, it seems Uncle Ben sure has tools on his utility belt that Batman fantasizes about.

Wed, 03/13/2013 - 12:35 | 3326250 tradewithdave
tradewithdave's picture

Max Keiser's "Just In Time" Poverty scalping by the Wal-martiquois Arkansas natives dis-intermediated by "pre-poverty" via behavioral economics and the Sunstein nudge back into the Higgs Boson future.

Wed, 03/13/2013 - 12:35 | 3326252 shayneals shayneals
shayneals shayneals's picture

Can you imagine the monetisation acceleration if america goes to war with china.

today the fed will be issuing 5 trillion usd of bonds with a 60 year maturity

 

ha ha ha

 

inflation coming...

Wed, 03/13/2013 - 12:49 | 3326297 medium giraffe
medium giraffe's picture

'inflation coming' - yup.  make few purchases, buy second hand, grow your own food, avoid contracts and loans.

starve the beast!

Wed, 03/13/2013 - 12:52 | 3326303 eclectic syncretist
eclectic syncretist's picture

You forgot brew your own favorite bevie.

Wed, 03/13/2013 - 13:06 | 3326341 optimator
optimator's picture

I've spent over seventy years in the scientific belief there is no perpetual motion machine.  Until now.

Wed, 03/13/2013 - 13:09 | 3326346 Clowns on Acid
Clowns on Acid's picture

Hey I only thought that pre buying a pre issue was possible with Bitcoin....

Wed, 03/13/2013 - 13:36 | 3326434 macroeconomist
macroeconomist's picture

It doesn't really matter if the fed monetizes the debt or not, there will be no inflation in the U.S in the foreseeable future..Inflation expectations are based on an entirely wrong theory between money supply, liquidity, and inflation...That's why for almost four years, markets are anticipating an inflation that will not come..

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2194959 

Wed, 03/13/2013 - 14:08 | 3326546 optimator
optimator's picture

The money is not out of the Bankster hands yet, so the first signs of inflatiion are the price of homes on Long Island with more than 24 bedrooms.

Wed, 03/13/2013 - 13:56 | 3326506 hmmmstrange
hmmmstrange's picture

Wow, the banks wont even buy the debt without getting the cash first.

Wed, 03/13/2013 - 14:01 | 3326526 mademesmile
mademesmile's picture

I need a good analogy...is this the same as...

Mailing $1,000 check.

But the day before you mail it, take a copy to the bank and cash it for $1,000.

 

Wed, 03/13/2013 - 16:19 | 3327367 hmmmstrange
hmmmstrange's picture

This is like the bank giving you cash today for a "promise" that you to send a check dated tomorrow  to a third person in return of a check dated 30 years from tomorrow from that third person that you give to to the bank today.

Wed, 03/13/2013 - 14:33 | 3326729 Herkimer Jerkimer
Herkimer Jerkimer's picture

'

'

'

'

This stuff just boggles me, but after 2 years of lots of reading, I'm getting the basics of understanding this financial wheelin'-'n-dealin'. Understanding, at least, the shitrats.

 

What worries me, is the stuff the FED is doing that they're NOT telling us about.

 

•J•
V-V

Wed, 03/13/2013 - 20:50 | 3328138 ozzz169
ozzz169's picture

Watch the bass clip, I cant rememeber what banker said it, "whenever its really bad you just have to lie".

 

But I really dont see the big deal here, the treasury issued the bond a month ago, so the fed just bought it before it went to auction.  I think it took a total of 3 min for some peon at the fed to call some peon at treasury and say, "hey I need to throw another few billion down the black hole of US Debt, what you have for us this week?  ok, sounds good now that I have that done I can cut out early tomorrow and take a long weekend. thanks buddy"

 

 

Wed, 03/13/2013 - 20:20 | 3328082 hmmmstrange
hmmmstrange's picture

What happens if someone buys the full bond offering and doesn't sell it to the fed?

Thu, 03/14/2013 - 01:14 | 3328781 EZYJET PILOT
EZYJET PILOT's picture

Who did they buy the bond from I wonder?

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