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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Headbanger's picture

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

jbvtme's picture

what about belgium?  i'm long brussel sprouts

Sudden Debt's picture

It's Belgium with a capital B...


kurzdump's picture

Who cares about soccer anyway?

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"

jbvtme's picture

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

Sudden Debt's picture

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


DavidC's picture

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


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.

Canucklehead's picture

Real Men make things happen. Real women follow sports.

Fuh Querada's picture

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

Billy Sol Estes's picture

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

Sudden Debt's picture

pigs will fly and hell will freeze over...

kito's picture

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

Sudden Debt's picture

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

last hellicopter out of saigon


fonzannoon's picture

You tell him Kito!

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

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.......


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...

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.

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.

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....


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.


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. 

disabledvet's picture


"Al Qaeda attacked but the enemy was us."

JD59's picture

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

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!!!

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.

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.

jmcadg's picture

Off topic:

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

Atomizer's picture

Recommended by 4 out of 5 CIA agents.

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.

orangegeek's picture

POMO is 35B - NY Fed POMO is 19B


Last month was $45B/$25B

Atomizer's picture

POMO has been effected by Global Climate Chaos woes.


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.

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.

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?