• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

FOMO Is The New POMO

Tyler Durden's picture




 

By now everyone knows that POMO is the daily physical manifestation of the Fed's love for the "1%", and the trillions in underfunded pension and stock-linked entitlements, taking place (almost) every day in the hours between 10:15am and 11:00 am Eastern, when the NY Fed's trading desk injects between $1 and $6 billion in the stock market. What many may not know is that while POMO was the name of the game since 2009 (just think where the S&P would be if the "market" was only open on Thursday, during the 45 minute duration of POMO, and between 3:30 pm and 4:15 pm), it may have finally met its homophonous match, courtesy of Citigroup. So step aside POMO. Presenting.... FOMO, or Fear Of Missing Out.

From Citi's Stephen Antczak:

Fear Of Missing Out outweighs all others

 

There is a new factor that investors seem to be incredibly wary of, and it has nothing to do with fiscal challenges in Europe, a slow economic backdrop, shareholder-friendly activities, or the potential for rising rates. What investors seem to be most afraid of at this stage is simply missing out – missing out on carry in the best case, and continued tightening in the worst.... This FOMO mentality has become more acute and may outweigh all other worries in the near-term.

And circularly #Reffing! scene.

Golfclap oh Great Chairsatan: you have finally made the momentum chasing herd mentality, driven by the fear of a pink slip, the only game in town. How this has anything but a very happy ending for everyone is simply beyond us.

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Tue, 05/07/2013 - 14:41 | 3538279 IndicaTive
IndicaTive's picture

Some of the people in my company, the same people that had no clue how to log on to their 401k account a year ago are now discussing which funds they should be in to chase the market up.

Tue, 05/07/2013 - 14:44 | 3538298 LawsofPhysics
LawsofPhysics's picture

That's a bad sign, but so long as there is no chance those treasuries are going to go bidless, why not?  85 billion becomes 120 billion, then 300 billion.  everyone gets a free blow-job and a $25 loaf of bread or $25 gallon of gas, whichever comes first.

Tue, 05/07/2013 - 14:46 | 3538305 The Juggernaut
The Juggernaut's picture

Cue the muppets and immediately following them, the muppet slayers.

Tue, 05/07/2013 - 14:50 | 3538318 espirit
espirit's picture

The Bankruptcy of the United States

http://www.afn.org/~govern/bankruptcy.html

Tue, 05/07/2013 - 14:52 | 3538325 LawsofPhysics
LawsofPhysics's picture

A fine rant that accomplished nothing.

Tue, 05/07/2013 - 15:01 | 3538361 NotApplicable
NotApplicable's picture

+100 Tyler, for pulling off an excellent meme-jack!

Tue, 05/07/2013 - 16:05 | 3538579 DaveyJones
DaveyJones's picture

and a media has been turned spanish soap opera is an accurate american analogy

Tue, 05/07/2013 - 15:03 | 3538370 astoriajoe
astoriajoe's picture

I was wondering why this guy in the black robe and hood has been standing behind my chair all f*ckng morning.

Tue, 05/07/2013 - 16:16 | 3538608 fomcy
fomcy's picture

HOMO is a new POMO.

Wed, 05/08/2013 - 00:56 | 3540047 Moonrajah
Moonrajah's picture

A HOMO jinxed by his FOMO is chasing the POMO, and it ain't no pro BONO.

Yup, sums it up for me.

Tue, 05/07/2013 - 15:07 | 3538382 tarsubil
tarsubil's picture

I see this on commuting days. People pile into the left lane mindlessly and it ends up stopping due to the higher traffic and goes slower than the other lanes. People do this day after day unable to see the mistake they are making. It is fascinating.

Tue, 05/07/2013 - 16:58 | 3538741 Overfed
Overfed's picture

If only it were legal to PIT left-lane squatters....

Wed, 05/08/2013 - 06:37 | 3540303 e-recep
e-recep's picture

shoe shine boy moment.

Tue, 05/07/2013 - 14:42 | 3538281 WTF_247
WTF_247's picture

No funds.  Just go long SPY - easier.

Tue, 05/07/2013 - 14:42 | 3538284 resurger
resurger's picture

FOMO the Sheep...

Muaaaaaaaaaah!

Tue, 05/07/2013 - 15:28 | 3538462 prains
prains's picture

FOrk MOnkeys

 

All you can stuff in every orfice

Tue, 05/07/2013 - 14:43 | 3538286 q99x2
q99x2's picture

hopiumhomophonousphobium I'm buying stocks.

Tue, 05/07/2013 - 14:43 | 3538288 Uncle Zuzu
Uncle Zuzu's picture

All professional money managers are FOMOs.  Career risk for missing out is much greater than for participating and losing money. Safety in crowds.

Tue, 05/07/2013 - 14:43 | 3538290 kahunabear
kahunabear's picture

Nobody here missing out.

Tue, 05/07/2013 - 15:15 | 3538292 Mercury
Mercury's picture

Don't go all FOMO! Get with the POMO!

You want the riches and the bitchez then get jiggity with Uncle Ben's liquidity!

 

Tue, 05/07/2013 - 14:44 | 3538295 Vashta Nerada
Vashta Nerada's picture

People staying out of the market will be accused of fomophobia

Tue, 05/07/2013 - 15:16 | 3538403 AynRandFan
AynRandFan's picture

Bloomie radio today accused anyone against Keysianism of being a homophobe.  The reason, apparently Keynes was gay and impliedly didn't care whether children inherited a huge debt.  

Tue, 05/07/2013 - 15:52 | 3538520 Kirk2NCC1701
Kirk2NCC1701's picture

Of course he was jolly.  He was English.  They always like a jolly-good show.  It's always bloody this, and jolly that, and gay old time.  And an English fag is not American fag.  And an English fanny is not the same as an American fanny. 

I say, I say I say.  Bloomies had better get their bloomin' language and diction correct!  Bloody Americans!

/s

Tue, 05/07/2013 - 17:02 | 3538749 Overfed
Overfed's picture

If he were merely a butt-pirate, that would be no big deal. Keynes was a little boy raping pederast and customer of human traffickers.

An true deviant of the lowest order.

Tue, 05/07/2013 - 14:52 | 3538301 Kirk2NCC1701
Kirk2NCC1701's picture

I'm a fiscal Dancing FOOL (Fear Of Overt Losses)... Everybody TWIST!

But my wife is a MILF.

 

Tue, 05/07/2013 - 15:02 | 3538368 NotApplicable
NotApplicable's picture

Since when do Trekkies have sex? :D

Tue, 05/07/2013 - 15:05 | 3538376 NotApplicable
NotApplicable's picture

Wait... on second thought, I don't wanna know.

Tue, 05/07/2013 - 16:11 | 3538594 DaveyJones
DaveyJones's picture

beam me up takes on a whole new meaning

Tue, 05/07/2013 - 16:17 | 3538613 youngman
youngman's picture

They have Tribbles...lots of tribbles

Tue, 05/07/2013 - 16:28 | 3538653 DosZap
DosZap's picture

Defintely OT, but unless I missed it I have not seen this on any MSM, or ZH.

 

HOW TO HALT THE TERRORIST MONEY TRAIN

By Robert Mazur - Friday, May 3, 2013

Last December, HSBC admitted in court pleadings that it had allowed big Mexican and Colombian drug cartels to launder at least $881 million. The bank also admitted to using various schemes to move hundreds of millions of dollars to nations subject to trade sanctions, including Iran, Cuba and Sudan, in violation of the Trading With the Enemy Act. “On at least one occasion,” according to a statement by Assistant Attorney General Lanny A. Breuer, “HSBC instructed a bank in Iran on how to format payment messages so that the transactions would not be blocked or rejected by the United States.”

Those were some of the transgressions uncovered during a two-year investigation led by the Justice and Treasury Departments and acknowledged by HSBC in a settlement, known as a deferred prosecution agreement, that was filed in a federal court in December. Not a single executive was charged with a crime. Instead, the bank paid $1.9 billion in fines and forfeitures — or roughly 10 percent of the pretax profits it earned in just 2010, one of the more than five years during which it admitted to criminal conduct.

HSBC is hardly alone. Court filings show that, since 2006, more than a dozen banks have reached settlements with the Justice Department regarding violations related to money laundering. ING Bank paid a $619 million fine for altering records and secretly transferring more than $2 billion for entities trading with Iran and other nations under sanctions. American Express Bank International acknowledged that more than $55 million in drug proceeds may have been laundered through offshore shell accounts it maintained. The Justice Department has signed similar agreements, withholding prosecution in exchange for bank promises to tighten oversight, with Wachovia, Union Bank of California, Lloyds, Credit Suisse, ABN Amro Holding (now owned by Royal Bank of Scotland), Barclays and Standard Chartered. All admitted to criminal offenses; all were handed the equivalent of traffic tickets — pay a fine on your way out the door.

This has been the government’s playbook in fighting terrorism and the drug trade. For make no mistake, without the ability to “wash” billions of dollars of money from illicit sources each year and bank the untraceable profits, both of these criminal enterprises would falter.

In November, the House Subcommittee on Oversight, Investigations and Management issued a shocking report documenting the collaboration between Mexican and Colombian drug cartels and Hezbollah in narcotics and human trafficking, smuggling and financial crimes in the United States and Latin America — a partnership that, in just the border region between Brazil, Paraguay and Argentina, produces an estimated $12 billion in cash each year.

Yet data from the Department of Justice Asset Forfeiture Fund and the United Nations Office on Drugs and Crime Research Report show that United States law enforcement tracks down and seizes no more than 1 percent of the drug fortunes generated each year by global cartels.

The rest isn’t hiding in mattresses. It’s being washed — stripped clean of information that would identify its source, then transferred from one account to another, and often moved surreptitiously through various business enterprises, until it can settle safely in a criminal’s private offshore bank account. None of this happens without help from bankers, lawyers and businessmen.

I have seen this firsthand. I was a federal agent for 27 years and worked undercover as a money launderer within this murky realm for five of them. I worked on teams that put leaders of drug cartels behind bars. The largest and most sophisticated of these criminal enterprises don’t trick banks into laundering their money — they partner with that small segment of the international banking and business community that recirculates drug profits and cash from other illicit trades, like black-market arms dealing.

The only way to stop the flow of this dirty money is to get tough on the bankers who help mask and transfer it around the world. Banks themselves don’t launder money, after all; people do.

The standard of proof needed to charge and convict a bank officer of money laundering is simple. If the person knows that funds are proceeds of a crime and, thereafter, he attempts to disguise or conceal the true source of the funds, he has committed the criminal offense of money laundering. Any individual who intentionally provides financial services to criminal organizations should be dealt with as harshly as possible under the law.

Bank officers at HSBC branches in Mexico who facilitated the transfer of $881 million for the Sinaloa Cartel in Mexico, the Norte del Valle Cartel in Colombia and other narcotics traffickers — deposits that were often passed through teller windows in cash-filled boxes, some with hundreds of thousands of dollars in them — might contend that they were naïve about this money’s source. But there’s little incentive for them, or any bank officer, to be more vigilant when turning a blind eye comes with little or no penalty.

The stakes are simply too high for such a soft-glove approach on money laundering. As long as drug traffickers can wash the stain from 99 percent of their ill-gotten gains, as long as terrorists can move their cash freely around the world, we’ll have no chance to halt their deadly trades. We can help put an end to both of these scourges by putting the bankers who facilitate them in jail.

Tue, 05/07/2013 - 14:46 | 3538302 resurger
resurger's picture

How about a FOMO on Gold & Silver?

Tue, 05/07/2013 - 14:51 | 3538323 auric1234
auric1234's picture

That's precisely what manipulation is aimed at preventing.

 

Tue, 05/07/2013 - 14:48 | 3538308 FubarNation
FubarNation's picture

MOFO

Tue, 05/07/2013 - 14:49 | 3538309 Peter Pan
Peter Pan's picture

The best thing that can happen is for the stock markets to close down 4 days per week because they are nothing but an abstraction and an obstruction. This fixation on manipulating the thermometer will not change the real temperature of the economy and instead will do it some real harm.

 

Tue, 05/07/2013 - 15:08 | 3538386 resurger
resurger's picture

The BOMDOW Strategy is epic:

Buy On Monday Dump On Wednesday

Tue, 05/07/2013 - 14:49 | 3538311 fonzannoon
fonzannoon's picture

This is an actual conversation that I can't prove ever took place today.

 

" I fuckin told you I could get these dumb mice to scramble for the cheese again, you gotta listen to me you dumbass"

 - Bernank

"Ain't that some shit. Thanks man. Hey...145yrds out with a light breeze...9 iron or a wedge?"

Obummer.

Tue, 05/07/2013 - 14:54 | 3538336 francis_sawyer
francis_sawyer's picture

You'll FAT the 9-iron & you'll BLADE the wedge... Caddie says: Get out your putter...

Tue, 05/07/2013 - 15:03 | 3538371 resurger
resurger's picture

You can keep the monkies

Tue, 05/07/2013 - 14:49 | 3538317 Cursive
Cursive's picture

FOMO doesn't exist anymore.  This Antczak shill is trying to incite FOMO.  Retail is worried about making ends meet...not FOMO.

Tue, 05/07/2013 - 14:51 | 3538328 fonzannoon
fonzannoon's picture

Cursive I guess like the housing conversation this morning went....the FOMO's around me are alive and well.

Get in now these prices won't last!!!!!

Tue, 05/07/2013 - 14:59 | 3538353 Cursive
Cursive's picture

@fonzanoon

We had a dinner party last weekend and a financial advisor was a guest.  The only time financial markets were mentioned was when another guy said he was day trading the day of the Flash Crash.  That was it.  No follow-up.  No FOMO.  Most people I meet intuitively know this shit is rigged and have moved on....dinner was very nice.

Tue, 05/07/2013 - 15:04 | 3538373 fonzannoon
fonzannoon's picture

I always assumed we lived in different places but now I am starting to think you are in the future and I am stuck in the past. As if my brain was not scrambled enough already.

"Most people I meet intuitively know this shit is rigged"

That however, is one thing we still have in common.

Tue, 05/07/2013 - 15:48 | 3538525 Its Only Rock N Roll
Its Only Rock N Roll's picture

If you or any of you FOMO's touch my stocks....I'll kill you

Tue, 05/07/2013 - 14:51 | 3538321 Yen Cross
Yen Cross's picture

     FOMO soon to become FUBAR.

Tue, 05/07/2013 - 15:04 | 3538372 NotApplicable
NotApplicable's picture

Got Puts?

Tue, 05/07/2013 - 14:52 | 3538327 Whiner
Whiner's picture

Buy everything Ben, you hooker!

Tue, 05/07/2013 - 14:51 | 3538329 francis_sawyer
francis_sawyer's picture

JEWS. PRINT. MONEY. OUT. OF. THIN. AIR. [FOR THEMSELVES]. TO. PERPETUATE. A PONZI. STARTED. BY. THEMSELVES. FOR. THEIR. OWN. TRIBAL. BENEFIT.

<=== Water carriers junk here

Tue, 05/07/2013 - 15:02 | 3538354 Kirk2NCC1701
Kirk2NCC1701's picture

My name is Jim.  I'm a recovering Fiscalholic.  [waits for 'Hi Jim']  I admit that I'm pissed that I didn't think of the fiat-Ponzi + FRB first.  Was born 300 years too late. 

We need to start a new country or new religion.  Who's in?

Tue, 05/07/2013 - 15:49 | 3538534 francis_sawyer
francis_sawyer's picture

If any of you... 'FOMOS'... touch me... I'll kill you...

Tue, 05/07/2013 - 16:27 | 3538646 prains
prains's picture

will there be an all you can eat buffet ??

Do NOT follow this link or you will be banned from the site!