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July POMOs Drop To Just $19 Billion, Lowest Since 2012

Tyler Durden's picture


In June there were no POMOs on Friday. In July, when as was revealed yesterday the Fed's monthly POMO operations will add only $19 billion in net liquidity injections (below the $20 billion scheduled due to an extra $1 billion POMOed in June) the lowest since 2012, there are no POMOs on Friday and there is just one Wednesday POMO. The days of the Fed market rigging, or as the BIS called it over the weekend, the "fairy dust of illusionary riches" are coming to an end... at least until the market crashes as it did after the end of QE1 and QE2, and the Fed scrambles right back in to buy it all up again.

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Tue, 07/01/2014 - 08:27 | 4913314 Headbanger
Headbanger's picture

It's moar like the Fed is in "self preservation" mode niow as I've been saying.

Tue, 07/01/2014 - 08:27 | 4913315 jbvtme
jbvtme's picture

what about belgium?  i'm long brussel sprouts

Tue, 07/01/2014 - 08:30 | 4913319 Sudden Debt
Sudden Debt's picture

It's Belgium with a capital B...


Tue, 07/01/2014 - 08:36 | 4913338 kurzdump
kurzdump's picture

Who cares about soccer anyway?

Tue, 07/01/2014 - 08:43 | 4913343 Sudden Debt
Sudden Debt's picture

Everybody who thinks second place is the same as lossing.

But you're American so we'll just call it "strategical pullback"

Tue, 07/01/2014 - 09:31 | 4913445 TeamDepends
TeamDepends's picture

Love ya SD, but your boys are going down today 2-1.

Tue, 07/01/2014 - 09:49 | 4913484 Sudden Debt
Sudden Debt's picture

i love ya to TD...

but this is personal... not business...

http://youtu.be/j45zdx3d7rk :)




Tue, 07/01/2014 - 08:40 | 4913345 jbvtme
jbvtme's picture

if it was played by nude women... then kicking a ball around for three hours might peak my interest

Tue, 07/01/2014 - 08:42 | 4913350 Sudden Debt
Sudden Debt's picture

does it really take 3 hours of woman playing with your balls before you get interested?


Tue, 07/01/2014 - 08:50 | 4913358 DavidC
DavidC's picture

I think you mean "pique" your interest...


Tue, 07/01/2014 - 08:58 | 4913370 TabakLover
TabakLover's picture

Just real women cannot have too many shoes, REAL MEN cannot have too many sports to follow.   So, I hope your a chick.

Tue, 07/01/2014 - 09:26 | 4913425 Canucklehead
Canucklehead's picture

Real Men make things happen. Real women follow sports.

Tue, 07/01/2014 - 09:24 | 4913417 Fuh Querada
Fuh Querada's picture

Right. If the header were "overt" POMO it might be more credible.

Tue, 07/01/2014 - 08:29 | 4913318 Billy Sol Estes
Billy Sol Estes's picture

What happens if we beat our coupon buyer in the World Cup?

Tue, 07/01/2014 - 08:30 | 4913322 Sudden Debt
Sudden Debt's picture

pigs will fly and hell will freeze over...

Tue, 07/01/2014 - 08:45 | 4913353 kito
kito's picture

relax SD, your squad isnt that good.....

Tue, 07/01/2014 - 08:56 | 4913366 Sudden Debt
Sudden Debt's picture

That's what you guys said about the Vietcong...

last hellicopter out of saigon


Tue, 07/01/2014 - 08:55 | 4913367 fonzannoon
fonzannoon's picture

You tell him Kito!

Murika!!!!!! Stars and stripes baby! (smashing beer can on forehead).

Tue, 07/01/2014 - 09:32 | 4913448 TeamDepends
TeamDepends's picture

Toga!  Toga!  Toga!

Tue, 07/01/2014 - 09:58 | 4913537 kito
kito's picture

sure beats sitting around jerking off over thoughts on how tapering will ruin the markets...oh wait.......i mean how the end of pomo will ruin the markets.....oh wait......on how gold will be at 10,000/0z.....oh wait.......


Tue, 07/01/2014 - 08:32 | 4913327 Jlasoon
Jlasoon's picture

Sharpen that pitchfork. 

Tue, 07/01/2014 - 08:30 | 4913320 youngman
youngman's picture

I do not think the Fed knows where they are at...they smell smothing wrong...but do not know what to do about it...

Tue, 07/01/2014 - 08:34 | 4913332 NoDebt
NoDebt's picture

So, basically, just like the rest of us.

Here's my thought:  we're now in a recession.  What happens when you go in a recession WHILE the Fed is running wide open throttle?  Nothing good would be my guess.

Tue, 07/01/2014 - 09:43 | 4913485 john39
john39's picture

this chaos that we all see has been carefully engineered over a very long time frame.  the goal is transition the entire planet, or what's left of it, into a new centrally controlled system, so that the evil that has ruled from the shadows can come out openly... then 'do as thou wilt shall be the whole of the law'....  at least for them.

Tue, 07/01/2014 - 10:12 | 4913590 kito
kito's picture

. chaos engineered? are you fucking kidding me? the fed has created anything BUT chaos. the markets are as placid as a caribbean cove. the markets have continued to crank higher despite the fact that the fed has tapered and is cutting pomo. they have the bond market in a sweet spot, stawks higher, headline numbers exactly where they want them to be.....the fed has made a fool of this site.........and its laughable how you refuse to recognize it....


Tue, 07/01/2014 - 08:55 | 4913333 Headbanger
Headbanger's picture

Nahh.  I think the Fed knows exactly where they're at being caught between a huge rock and an AR500 hard place.

But they still don't know what to do about it except pull back on all their futile efforts to save the U.S. economy for the sake of an idiot in the Oval Office who just keeps fucking it all up anyway.


Tue, 07/01/2014 - 08:35 | 4913336 fonzannoon
fonzannoon's picture

the fed does not need Pomo anymore. skynet is complete. it's like the silver rigging ending. they will let it end as long as they still have it rigged. 

Tue, 07/01/2014 - 10:06 | 4913560 disabledvet
disabledvet's picture


"Al Qaeda attacked but the enemy was us."

Tue, 07/01/2014 - 08:37 | 4913340 JD59
JD59's picture

QE or BUST for the world markets. Buy physical gold & silver and take physical delivery!

Tue, 07/01/2014 - 08:39 | 4913342 fattail
fattail's picture

They have to cut it off so they can crank it back up.  I bet they wish they would have dialed it back a bit sooner.   DAMN YOU POLAR VORTEX!!!

Tue, 07/01/2014 - 08:42 | 4913348 jmcadg
jmcadg's picture

Don't worry, there's still the $200 billion of shadow input per month that no one speaks of. Fuckin' bullshit I say.

Tue, 07/01/2014 - 08:42 | 4913349 GFORCE
GFORCE's picture

The FED wants to raise rates but needs stocks at hugely inflated prices to limit the fallout. The 'exit tax' on bonds also shows how worried they are about liquidity.

Tue, 07/01/2014 - 08:44 | 4913351 jmcadg
jmcadg's picture

Off topic:

Anyone else getting the ISSA toothbrush ad on ZH? THat's not a toothbrush, that's a dildo!

Tue, 07/01/2014 - 09:39 | 4913472 Atomizer
Atomizer's picture

Recommended by 4 out of 5 CIA agents.

Tue, 07/01/2014 - 08:44 | 4913352 madbraz
madbraz's picture

As long as there are algos and HFT in the markets (even in treasury markets, to the delight of the NY FED!), the markets will continue to be manipulated.  They've discovered this mechanism to push things in the direction they wish and they are obviously going to abuse it.


It ends when they either (1) end these corrupt schemes or (2) selling volume overwhelms the scheme.  As the dropbox media will always spin news as positive and the economic indicators are mostly rigged, it will take something larger than usual to make it end.

Tue, 07/01/2014 - 09:15 | 4913397 orangegeek
orangegeek's picture

POMO is 35B - NY Fed POMO is 19B


Last month was $45B/$25B

Tue, 07/01/2014 - 09:31 | 4913439 Atomizer
Atomizer's picture

POMO has been effected by Global Climate Chaos woes.


Tue, 07/01/2014 - 09:30 | 4913440 exartizo
exartizo's picture


Fly On The Wall Productions

A recent discussion at the Fed over the extra $1 billion POMO in June 2014

Janet: Ya what happened there John?

John: Oh Janet. I’m so sorry. I was busy entering corporate trading data when I got distracted and didn’t notice I’d injected the extra billion.

Janet. Ya John. Ya know John some people are watching what we do here. Ya know?

John: Yes Janet I know what you’re saying.

Janet: Ya those ZeroHeads get me the most. They all think I’m an idiot already. I don’t need you proving it to them by making them think I can’t count to 20, ya?

John: Understood Janet. I’ll be more careful next month and adjust for the mistake.

Janet: Ya John. I know a billion aint what it used to be but I just hate those ZeroHeads breathin’ down my neck, ya?

John: It won’t happen again Janet.

Tue, 07/01/2014 - 09:33 | 4913450 Atomizer
Atomizer's picture


Mr. Janet Yellen.

Tue, 07/01/2014 - 10:40 | 4913680 exartizo
exartizo's picture

thanks man. :)

Tue, 07/01/2014 - 09:48 | 4913501 NEOSERF
NEOSERF's picture

Just need to open the throttle harder to hit that elusive escape velocity...Janet has a $100B monthly QE in her, just give her some time to destroy the economy, er the stock market and once the 1000 pt drop comes, bang $100M gets announced and we are back to the good ole days of 2009 " do whatever it takes"...we can play this game for a while longer.

Tue, 07/01/2014 - 11:00 | 4913752 khakuda
khakuda's picture

The fact that there is any POMO going on when the markets are in a huge bubble demonstrates the ineptitude of the Fed.  You still need lower rates or higher asset prices at this point?

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