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POMO Is Officially Dead... Until The Next QE
Back when QE1 ended in 2010, everyone celebrated the end of POMO, except for websites such as this one which warned it was only a matter of time before the Fed unleashes another QE program to offset the market correction. We were right.
Then, when QE2 ended, everyone celebrated the end of POMO, except for... well you get the picture.
Moments ago, the last POMO of QE3 just hit the tape when the NY Fed monetized $931 million of bonds matruing between 2036 and 2044, which was also the last ever POMO.... at least under QE3.
So feel free to rejoice, if only for a few months, but don't be surprised when the market dumps, and Bullard, Williams et al, follow through on their promise of launching Qe4 and POMO restarts all over again.
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I give it a week...
...and QE4 will be Double Secret QE.
No calendar.
No limit.
Only insiders will know when and how much.
Won't that be exciting?
It's exciting, still it's not working for real economy, so double secret QE - double speed of declining
Look out below!!!!
Look out above!!!!
Time to get Belgium'd again.
Want to play a few hands? Your credit is good.
Sadly, that is pretty much the truth as to where we are right now.
The big boys want to crash the market. They catch the big short on the way down and buy stawks on the cheap at the bottom. They win, everyone loses.
Only works if there are stocks to buy. Look up the number of public stock companies in 1929 and how many still existed five years later and just remember the really big corporations are leveraged out the ass from stock buybacks.
Just look out !!!
Considering the acronym of POMO stands for PERMANEMENT Open Market Operations, I'd say, as does Peter Schiff, it will NEVER end.
It will end when the hangings begin....
If you have access to big piles of "money" at 0.01%, life is good, very good. No need for POMO.
We've had 0.1% for a long time. If it was sufficient to increase the "float" of the US dollar, there wouldn't have been a need for QE to begin with. QE increases the float which gives an all clear indicator to primary dealers to continue shorting the dollar (i.e. borrow at 0.1%).
spot on, but what can the suckers do! nothing.....heh
It seems all they ever do is the opposite of what they say so i think they will be doubling the efforts theough some unknown mechanism
nah. the ecb will carry us over till after the elections. then, the boys can get back to doing what they do best: destroying capital and the already diminished value of $.
rumors work until they don't
we're in uncharted territory now
who keeps holding equities when they've been told that the rug has just been pulled from under their feet?
If the market drops then Fed will take action.
I think if you are betting on the crash because "punchbowl taken away" then thats a bad bet.
How are they going to spin it this time? There's nothing left to buy, nothing left to extend further in terms of debt. Unless they come out into the open and announce they're buying every equity under the sun, this market has nowhere left to go but down. Oil price is a pretty good indicator where we're headed.
All they have to do is keep buying the entire bond market like they've been doing. The cash will have to go into stocks or under the mattresses. Are people giong to leave trillions in the banks and trust that the FDIC will insure all of it?
Yes people will. Confusion has reached its maximum and the market has no direction because no decision has been made as foward plan. There are but two choices foward and no decision has been made to anything but 'muddle'.
You can pay a debt or default there are no other choises but if we pay the debt inflation will jump and purchaseing power collapse politicaly difficult decision.
You can default on that debt, houseing prices collapse and so do the balance sheets of all the banks because the leverage was never undone just added to.
So no real decision has been made and with open QE done everyone is confused enough not to make any real forward decisions so the markets will now move based on headlines untill a real decision has been made for market direction.
IT'S A TRAP!
I believe we are entering a new phase, where there will be no more overt QE.
It could destroy confidense in the markets and the dollar.
We all know the fed are money counterfeiters, but now the have become money launderers. Think Belgium.
I give it 3 days. By thursday morning max
NOMO POMO
No POMOs allowed.
"If any of you POMOs touches me... I'll kill ya."
Okay Barry... the training wheels just come off...
It's still Bush's fault, same as always... "We inherited an awful economy" or some shit like that...
Sad but true. A top democrat talking point memo said to blame Bush for anything bad that happens throughout 0bola's 8 years. While Bush was a clusterfuck, 0bola has been even more of a clusterfuck
will be later than sooner
need to restock the trout pond first
So...
This is what "escape velocity" feels like?
Can't I have some more QE? Please? Just a little!
the escape velocity the speak of is like the rocket ride in front of Woolworths when I was a kid. begged mom for a quarter, climbed in, lights flashed as it shook and made apollo engine sounds.
and when I got out I realized I'd gone nowhere, despite my astronaut fantasy.
That's because the quarter mom gave you was minted after 1964. Fake money buys you a fake rocket ride.
A moment of silence
http://www.youtube.com/watch?v=WChTqYlDjtI
Exectuive oeder form Obama for a 3 trillion Krugman money hole, excude me, infrastruture to be financed by QE.
yep, it did wonders for China's economy
Exectuive oeder form Obama for a 3 trillion Krugman money hole, excude me, infrastruture to be financed by QE.
Bears came out of hibernation. Spring turns into summer. 5 years of winter have finally ended.
QE4 after a 10% market correction this fall
gotta see at least 30% to get the juices flowing
It went batshit on 10%, 30% and its game over..... Calpers /Shitcago/ NJ, etc are all done
As I said before in a post that disapeared, today is the day skynet become sentient, and they try and hold it up with HFT......
jawboning by federal reserve presidents/governors will be intense
but i still see no way of QE4 until $trillion deficits back in vogue (won't be long courtesy of recession)
it will be interesting to see how long Mr Market puts up with jawboning ... before "Show Me The Money"
Gnashing and grinding of teeth even.
I'm starting to agree with you.
maybe a while if they can borrow at zero to inflate earnings.... Earnings were good this quarter y of y, revenue not so much..... Reason buy backs...
for all the shorts...
Markets down on Ebola fears.
...markets up on the price of steers...
So what happened to all that debt ceiling debate hub ub? We don't hear anything anymore on that issue do we?
it's fixed! debt ceiling raised, economy picked up and revenue increase will cover any previous shortfall.
do you believe in magic????
Why bother. Both partys are one.
Not sure if that's a serious question, but the debt ceiling debate is no longer an issue, because they removed the debt ceiling. No ceiling, so nothing to debate. Just smooth sailing into the infinite beyond from here on out.
Its tough to breathe in space, and no one will hear you scream.
The debt ceiling is no more, gold decoupled big time. ZH had a nice chart a while back, if I could post images I would...
interesting times.
The sky is the limit now
POMO PO PO POMO PO PO POMO POMO there's no limit!
Please, if you have access to "free money" (money at 0.01 % interest), life is good, very good.
Let me be clear, roll the motherfucking guillotines, absolutely nothing changes otherwise.
All animals are created equal, but those animals that control the printing press are "more equal" than others...
same as it ever was...
(until it isn't, due to some "unforeseen" event)
"To infinity and beyond"
We got a 22% correction in 2011 before the next QE was unleashed.
The POMO is DEAD...Long live the POMO.
If they lie,cheat and steal than they have found a new way to QE without detection they are sneaky bastards!!!
For the last 2 years, PMs have been sold off under the premise that POMO would be tapered and then ended. Now that QE3 is officially dead (but may make a zombie revival) what will be the excuse to sell PMs now? Will they follow the ECB's "everything is fixed, again" meme? Maybe the empty threat of rate rises? I am sure there is a bagful waiting to be used.
Next comes a small rally to show that stocks don't need QE. LOL
could be.
PPT is now working without FED Pomo is like a trapeez artist swinging around without a net.
Fed can't hold equities without pumping the markets at the same time. Imagine Fed starting to liquidite into this vacuum?
WHEN WILL THE AUDIT THE FED BILL BE PASSED BY CONGRESS ???
lol, good one.
Why do any more QE? At this point they can just levitate the markets by breaking them daily and issuing unsourced news stories. No need.
the fed is done buying bonds (or at least they should be) - the market is doing QE4 for them because the world is (and has been) slowing. people are being scared (& quite possibly rightfully so) into bonds.
next up IMO is stocks; NOTHING gets done in washington until stocks are crashing. next stock market crash LOAD UP because IMO BOTH SIDES will crap themselves and give the fed unlimited power to stop the stocks from going down. once we have another 50% tank-job, yellen will have her powers expanded and she'll straight up buy stocks IMO probably starting with REITs. they've gone too far down this rabbit-hole to stop now. like peter schiff said last week, they have to keep going BECAUSE QE has been a failure. they have nothing left and when this house of cards collapses again, NEITHER SIDE is going to want to be responsible for "not doing anything" (ie. the right thing) by allowing prices to correct to their proper asset value levels. this entire experiment (QE 1,2,3) is predicated on boosting asset prices so the fed CANNOT have a 50% retracement in stocks WITHOUT doing something when/if it does happen. bottom-line, they CANNOT admit failure.
when there is no-way out, the only solution is to go deeper in.
ZH nailed it weeks ago when they tweeted the right time to fix this fucking mess was after lehman; shudda hit the reset button & blew everything to absolute pieces & let the market sort out the severly disabled from the dead.
The Social Security Act will be amended to permit the Treasury to purchase stocks using the Social Security Trust Fund.
Time to be shovel ready is here
/s
I must say I really enjoy the QE4 hype, but I honestly think this will take a while to come to pass. There is December spending to analyse, elections to prepare for and, after all, the peasants need to beg for it before the reserve banks can step in again. If ECB and FED just jump into more printing it would show their hand, so they're going to let this period of "prosperity" sink in a bit while they find a new fad to securitise and do some "planning". Blaming China, Russia or the weather for any distress signals will buy plenty time while Joe Blogs tries to buy a turkey and a sock for the fireplace. I'm expecting the presses to start up early next year around financial year end when the markets are really crying. Who knows, war bonds might be just around the corner. Just my opinion on it, not particularly informed.
Will start back up after the November mid terms.
A bientot
Nothing will be allowed to come down until after Nov 4th........ Then it will be a republican senate and house for two years. In 2016, Hilliary will sweep a democratic senate / house in after she trounces either Jeb or Romney..... Sad state of affairs for Amerika.... Red and blue will end in the same place the path is different though.
All that monetization of public debt and here we are all these years later with the USD actually stronger against the Euro and Yen than when we started.
Watch out for US exports plummeting in the future
anyone and everyone KNOWS that when POMO dies, US indexes will take a major dump - even yellen knows this
so when barry gets shellacked on Nov 5, there isn't much point to keeping markets up
things should get good and chaotic after as markets tank
and then barry gets to roll out his communist dictatorship by executive order
whatever you do, don't run out of Orville Redenbacher!!!
No matter what heppens they won't allow the markets to fall. They'll keep buying bonds or even get 'Belgium' to start buying stocks if needs be.
The problem with your thesis is that it's not about Barry, but his paymasters on Wall Street. The permanent end of QE would reduce their bonuses.
POMO is not dead. POMO is not reduced. POMO has simply been moved underground where regular folks cannot see it.
This way the predators-that-be (at the federal reserve) can pretend the economy is improving at the same time it is actually spiraling down the tubes.
This is just the fed saying, "Look ma, no hands".
Not true, but that's what they're pretending.
It is now 4 days after the official end of POMO. I revisted this article in light of the recent parabolic rally.
I've had similar thought about a covert "POMO" but can't imagine how they'd do it.