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Fed Extends Twist Through End Of 2012, Prepared To Take Further Action, Market Unhappy

Tyler Durden's picture




 

As always, Goldman Corzined anyone who listened to its call that an epic QE is coming. Fed did the worst possible outcome for risk- merely extended Twist, just as the credit market predicted it would 3 weeks ago:

  • FED SAYS IT IS PREPARED TO TAKE FURTHER ACTION `AS APPROPRIATE
  • FED TWIST EXTENSION TO SWAP $267 BLN OF TREASURIES BY END 2012
  • FED TO SELL OR REDEEM `EQUAL AMOUNT' DEBT DUE 3 YEARS OR LESS
  • FED TO BUY TREASURIES DUE IN 6 TO 30 YEARS AT `CURRENT PACE'
  • FED SAYS EMPLOYMENT GROWTH `HAS SLOWED'
  • FED SAYS INFLATION HAS DECLINED, REFLECTING OIL
  • FED REITERATES ECONOMY `EXPANDING MODERATELY'
  • LACKER DISSENTS FROM FOMC DECISION

This means that soon Primary Dealers' entire balance sheets will be filled with the entire inventory of Fed 1-3 year bonds. Market not happy. Full June statement here.

Full April-June statment redline.

 

 

The New York Fed announces more details on what will be bought:

On June 20, 2012, the Federal Open Market Committee (FOMC) directed the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York to continue through the end of the year its program to extend the average maturity of the Federal Reserve’s holdings of Treasury securities.  Specifically, the Desk was directed to purchase Treasury securities with remaining maturities of 6 years to 30 years and to sell or redeem an equal par value of Treasury securities with remaining maturities of approximately 3 years or less.  The continuation of the maturity extension program will proceed at the current pace and result in the purchase, as well as the sale and redemption, of about $267 billion in Treasury securities by the end of 2012.

The FOMC also directed the Desk to continue reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities (MBS) in agency MBS, and to suspend, for the duration of the maturity extension program, rolling over maturing Treasury securities
into new issues at auction.

Purchases of Treasury securities for the maturity extension program will be distributed across five sectors using the same approximate weights that have been used in the purchases to date:

Nominal Coupon Securities by Remaining Maturity*
TIPS**
6 – 8 Years
8 – 10 Years
10 – 20 Years
20 – 30 Years
6 – 30 Years
32%
32%
4%
29%
3%

 

*The on-the-run 10-year note will be considered part of the 8- to 10-year sector.
**TIPS weights are based on unadjusted par amounts.

This distribution could be altered if market conditions warrant.

A combination of sales and redemptions of Treasury securities will be conducted to match the amount of purchases over the program.  Sales of Treasury securities will take place in securities maturing between January 2013 and January 2016.  Securities maturing in the second half of 2012 will be redeemed—that is, allowed to mature without reinvestment—since redeeming maturing Treasury securities has a nearly identical effect on the portfolio as selling securities that are approaching maturity.  Once the maturity extension program is completed, the Federal Reserve will hold almost no securities maturing through January 2016.

The Desk will continue to publish a tentative schedule of operations for the following calendar month on or around the last business day of each month. The schedule will include the anticipated amount of redemptions, purchases and sales to be conducted, operation dates, settlement dates, security types (nominal coupons or TIPS) to be purchased or sold, the maturity date range of eligible issues, and an expected range for the size of each operation. The next schedule of operations will be released on Friday, June 29.

All other program details remain the same at this time.  Additional information on the program’s structure can be found in the revised Frequently Asked Questions for the Maturity Extension Program

 

* * *

 

Finally, and again, this is what happened after the Fed disappointed last time around:

 

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Wed, 06/20/2012 - 12:35 | 2543842 Conman
Conman's picture

Goldman screws muppets yet again.

Wed, 06/20/2012 - 12:35 | 2543851 tsx500
tsx500's picture

SUCK IT BERNANK !!!

Wed, 06/20/2012 - 12:39 | 2543879 SHEEPFUKKER
SHEEPFUKKER's picture

Twist was such a smashing success before, so surely extending it will provide even more benefit to the global economy.  /sarc

Wed, 06/20/2012 - 12:41 | 2543898 Mark Carney
Mark Carney's picture

SURPRISE!!!!

 

Wish I would have manned up and bought Puts...but Im no gambling man.

 

 

Wed, 06/20/2012 - 12:44 | 2543922 Global Hunter
Global Hunter's picture

Come on are you trying to tell me that you Mark Carney, GS alumn did not front run this in your PA, your mother's PA and your offshore PA in the name of your cat?  No gambling man pssst pussy

Wed, 06/20/2012 - 12:57 | 2543981 NotApplicable
NotApplicable's picture

"C'mon let's twist again.

Like we did last Summer.

Yeah, let's twist again.

Like we did last year."

Wed, 06/20/2012 - 13:00 | 2544003 strannick
strannick's picture

Market is tiring of this game. Gold barely coughed up 3 bucks.

Wed, 06/20/2012 - 13:04 | 2544025 Divided States ...
Divided States of America's picture

Tyler needs to update the title to MARKET HAPPY. Nothing can derail this ponzi

Wed, 06/20/2012 - 13:05 | 2544043 Colombian Gringo
Colombian Gringo's picture

Nope,nothing except hanging all banksters.

Wed, 06/20/2012 - 13:05 | 2544036 Colombian Gringo
Colombian Gringo's picture

Lets get to root causes. Hang all banksters!

Wed, 06/20/2012 - 12:45 | 2543927 flacon
flacon's picture

You could have bought Molycorp. It's up 10% today. 

Wed, 06/20/2012 - 12:52 | 2543959 Thomas Anderson
Thomas Anderson's picture

Next up The Bernanke speaks to the market: "Bazinga!"

Wed, 06/20/2012 - 13:04 | 2543988 HarryM
HarryM's picture

Market is not Angry

VIX < 18

Actually their plan is genius

Create so much distrust in the market that everyone pulls their money out and invests in Real Estate , thus stimulating the economy - fucking genius

Wed, 06/20/2012 - 13:33 | 2544202 mkkby
mkkby's picture

Pimpco has been loading up on mortgage backeds thinking they'd be in the next QE.  Bill Gross is just another losing gambler along with his followers.  Why do people think he's a tuned in elite?

Wed, 06/20/2012 - 12:43 | 2543917 FlyoverCountryS...
FlyoverCountrySchmuck's picture

The markets must be propped up, at least until Election Day, NO MATTER HOW MANY HUNDREDS OF BILLIONS IT COSTS THE TAXPAYERS! COMRADE GREAT CHAIRMAN OBAMA's relection must not be endangered by this, no matter the cost.

(I've been calling this one for months)

Seriously, who is surprised by this? It's not like it's THEIR money they are using, after all.

Wed, 06/20/2012 - 12:47 | 2543938 Iam_Silverman
Iam_Silverman's picture

"The markets must be propped up"

Maybe you didn't understand what was posted - they are contimuing "Operation Twist".  That means they are buying U.S. Government bonds and bills, not securities.  That won't prop up any market, unless you are gaming Treasury ETF's.  Are you?

Wed, 06/20/2012 - 13:01 | 2544008 ActionFive
ActionFive's picture

Thinking the twist is where they place prices where they shouldn't be.

The rule is that all prices have to make things look good.

So, he could be right.

Wed, 06/20/2012 - 13:35 | 2544213 mkkby
mkkby's picture

Maybe you didn't understand.  They're gaming the long end down even more, which is artificial stimulus.  2 years plus and you're still this clueless????

Wed, 06/20/2012 - 15:08 | 2544647 Iam_Silverman
Iam_Silverman's picture

"2 years plus and you're still this clueless????"

I guess so.  But to me, Treasury Yield does not equal (Stock) Market valuations.  If it were equal, then why doesn't the yield change when jobless reports, inventory analysis, durable goods orders, etc. are spun to the positive and the Market (DJIA, NASDQ, S&P 500, Russell 2000) rallies to the moon?

Wed, 06/20/2012 - 12:39 | 2543878 veyron
veyron's picture

I'm surprised there isnt a really large fund which trades against goldman's calls ...

Wed, 06/20/2012 - 12:41 | 2543903 Marginal Call
Marginal Call's picture

That would be Goldman's trade desk. 

Wed, 06/20/2012 - 12:42 | 2543904 Rongen
Rongen's picture

There is, it's called Goldman Sachs!

 

Edit: Marginal Call beat me to it :(

Wed, 06/20/2012 - 12:43 | 2543916 SeverinSlade
SeverinSlade's picture

Um, what do you think ZH does all day? 

Wed, 06/20/2012 - 12:44 | 2543918 FXPortent
FXPortent's picture

Muppet goes *POOF* into the wind

Wed, 06/20/2012 - 12:44 | 2543919 HaroldWang
HaroldWang's picture

And here comes the rally off the lows on QE3 door still open and CNBC spinning it positive for QE coming. Market starting to love it!

Wed, 06/20/2012 - 13:07 | 2543931 vast-dom
vast-dom's picture

 

 


  • FED SAYS IT IS PREPARED TO TAKE FURTHER ACTION `AS APPROPRIATE -> ILLEGAL
  • FED TWIST EXTENSION TO SWAP $267 BLN OF TREASURIES BY END 2012 -> ILLEGAL
  • FED TO SELL OR REDEEM `EQUAL AMOUNT' DEBT DUE 3 YEARS OR LESS -> ILLEGAL
  • FED TO BUY TREASURIES DUE IN 6 TO 30 YEARS AT `CURRENT PACE' -> ILLEGAL
  • FED SAYS EMPLOYMENT GROWTH `HAS SLOWED' -> ILLEGAL POLICY HAS MADE THINGS WORSE
  • FED SAYS INFLATION HAS DECLINED, REFLECTING OIL -> inflation targeting is illegal according to the Federal Reserve’s mandate.
  • FED REITERATES ECONOMY `EXPANDING MODERATELY' -> ONLY WHEN FED BREAKS THE LAW AND IT IS NOT PRODUCTIVITY EXPANSION; HOPIUM & 1% SUBSIDIES ONLY
  • LACKER DISSENTS FROM FOMC DECISION -> UH HUH

when yours truly began investing in these markets i didn't sign up for TOTAL centrally planned subervsion of now bound, gagged, tied up and brutally (banker/fed) gang-raped markets. i am sure no one here did either...

Wed, 06/20/2012 - 13:03 | 2544006 THECOMINGDEPRESSION
THECOMINGDEPRESSION's picture

Goldman sucks knew EXACTLY what Bernanke was going to say. They lie just like every Government official, the media, accounting firm, the scam list is endless. We are probably into QE95 for all we know. There could be 600 trillion given to the banks, and it still isn't enough..

Wed, 06/20/2012 - 13:04 | 2544024 FL_Conservative
FL_Conservative's picture

Got to GO with the FLOW or STOCKS in de HOLE!

Wed, 06/20/2012 - 13:35 | 2544215 battle axe
battle axe's picture

Hey DOW, we will goose you a little, but just a little, because we have to keep our powder dry for the Middle East blow up coming soon. 

Wed, 06/20/2012 - 12:35 | 2543843 tsx500
tsx500's picture

SUCK IT BERNANKE !!!

Wed, 06/20/2012 - 12:35 | 2543844 flacon
flacon's picture

A centrally planned nightmare...

Wed, 06/20/2012 - 12:35 | 2543845 WALLST8MY8BALL
WALLST8MY8BALL's picture

Market Angry - Market Smash - Market Sad....

Wed, 06/20/2012 - 13:29 | 2544188 Metalredneck
Metalredneck's picture

Hulk depressed...

Wed, 06/20/2012 - 12:35 | 2543847 death_to_fed_tyranny
death_to_fed_tyranny's picture

FUCK OFF BERNANKE!

Wed, 06/20/2012 - 12:40 | 2543895 Floordawg
Floordawg's picture

I dunno, I'm starting to like the guy. He's making this shit WAY too easy!

 

Nah, fuck him... dead square in the ass.

Wed, 06/20/2012 - 12:35 | 2543848 Biosci
Biosci's picture

How much < 3yr debt does the Fed have left?

Wed, 06/20/2012 - 12:36 | 2543857 ReallySparky
ReallySparky's picture

All of China's.

Wed, 06/20/2012 - 12:39 | 2543882 Nostradamus
Nostradamus's picture

Yeah. I thought they were going to run out of all that short term debt by the end of August.

Wed, 06/20/2012 - 13:11 | 2544071 Matt
Matt's picture

Run out? I thought ~$100 Billion of fresh new USTs come out every month ...

Wed, 06/20/2012 - 13:41 | 2544239 Biosci
Biosci's picture

Fed, not Treasury.  Sort of defeats the purpose if they're buying as many freshly minted 3Y as they're selling under Twist2.

Wed, 06/20/2012 - 19:21 | 2545440 Matt
Matt's picture

Quantitative Twist; buy the short term treasuries from the Primary Dealers, sell them back and then buy long term Treasuries. Brilliant!

Wed, 06/20/2012 - 12:36 | 2543850 midgetrannyporn
midgetrannyporn's picture

The nonexistent market isn't happy?

Wed, 06/20/2012 - 12:50 | 2543945 HarryM
HarryM's picture

They're not happy ?

No reaction yet - will this turn into a rally yet again?  

 

Looks like this result has been "Priced into the market" already

Wed, 06/20/2012 - 13:00 | 2544002 midgetrannyporn
midgetrannyporn's picture

definitely bullish for (already) overpriced equities. lulz

Wed, 06/20/2012 - 12:36 | 2543854 T-roll
T-roll's picture

Bernanke to Wall Street "You're gonna have to let the market tank if you want to see the helicopters"

Wed, 06/20/2012 - 12:57 | 2543983 francis_sawyer
francis_sawyer's picture

can't have that before end Q2 or risk redemption notices

Wed, 06/20/2012 - 12:36 | 2543855 chinaguy
chinaguy's picture

Market NOT happy

Wed, 06/20/2012 - 12:36 | 2543856 Hedgetard55
Hedgetard55's picture

PMs not happy.

Wed, 06/20/2012 - 12:39 | 2543886 lsbumblebee
lsbumblebee's picture

Yes. "Investors" are selling their gold because the Fed has further debased the currency.

Makes a shitload of sense to me.

 

Wed, 06/20/2012 - 12:42 | 2543911 Nostradamus
Nostradamus's picture

But I am.  Time to buy up more PMs on the cheap.

Wed, 06/20/2012 - 12:37 | 2543859 asteroids
asteroids's picture

Ben threw the market a bone. Now back to Europe.

Wed, 06/20/2012 - 12:50 | 2543955 Iam_Silverman
Iam_Silverman's picture

"Ben threw the market a bone. "

Huh?  How about: "Ben boned the market"?

There, fixed it for ya'.

Wed, 06/20/2012 - 12:59 | 2543998 NotApplicable
NotApplicable's picture

How about, "Ben's bone is the market?"

Wed, 06/20/2012 - 15:09 | 2544653 Iam_Silverman
Iam_Silverman's picture

"Ben's bone is the market?"

So, futures are pointing down?  Possibly due to lack of stimulus?

Wed, 06/20/2012 - 12:37 | 2543860 GeneMarchbanks
GeneMarchbanks's picture

Buy the Euro

Wed, 06/20/2012 - 12:41 | 2543862 Animal Cracker
Animal Cracker's picture

FED says it is prepared to take further action "as appropriate"

There's a word that has been redefined.

 

Wed, 06/20/2012 - 12:37 | 2543864 Don Smith
Don Smith's picture

Time to stack.

 

Wed, 06/20/2012 - 12:40 | 2543885 Boston
Boston's picture

Not yet.

Without QE, dollar could rise, and gold could fall. Wait for the sale in gold to play out. Then buy.

Wed, 06/20/2012 - 13:03 | 2544005 epwpixieq-1
epwpixieq-1's picture

It will only happen if there is a squeeze that will create a sell for the paper gold ( the most liquid asset available - of course the physical ), and one (probably) can buy physical. Otherwise, if there is NO squeeze, all the players will hold the gold for there is constant printing that naturally will push the prices up.

So note the difference, the gold sells only on a squeeze, why else one is to sell the most liquid and comparatively well performing asset, especially with the expectation that there will be constant QEing, in no matter what form.

Wed, 06/20/2012 - 12:37 | 2543868 101 years and c...
101 years and counting's picture

SHORT TBT!

Wed, 06/20/2012 - 12:44 | 2543920 TBT or not TBT
TBT or not TBT's picture

Still undecided here at TBT central

Wed, 06/20/2012 - 12:38 | 2543871 ghostfaceinvestah
ghostfaceinvestah's picture

Dumb equity traders, did they think they were going to get more money printing with the S&P at 1360?

Wed, 06/20/2012 - 12:39 | 2543883 HelluvaEngineer
HelluvaEngineer's picture

They'll catch on when the coke wears off.  Oh, wait.

Wed, 06/20/2012 - 12:41 | 2543907 Dr. Engali
Dr. Engali's picture

They are pretty fucking stupid. They won't get their fix until the S&P hit's 1100

Thu, 06/21/2012 - 04:06 | 2546171 John_Coltrane
John_Coltrane's picture

Indeed, that's the target I've set for selling all my many puts that I've bought over the last 3 months.  This whole pump and dump thing was so obvious.  They must crash the market like they did last summer if they want more free money.  ZH has been spot on about this for the last couple months.  And the crisis in Europe and absence of any funded or authorized ESM bailout fund (potentially funded by the countries which need bailout) is just icing on the short's cake (get the pun?).

Put holders will  all be singing "I'm in the money, I'm ITM" by August or sooner.

Wed, 06/20/2012 - 12:38 | 2543874 Divine Wind
Divine Wind's picture

 

 

Daddy? What does 'stacking' mean?

Wed, 06/20/2012 - 12:38 | 2543875 Cassandra Syndrome
Cassandra Syndrome's picture

Skynet is not amused.

Wed, 06/20/2012 - 12:38 | 2543876 fuu
fuu's picture

All the buildup for this?

Wed, 06/20/2012 - 13:21 | 2544147 slewie the pi-rat
slewie the pi-rat's picture

ty fur yer attention, shooter!

bull's eye BiCheZ!

Wed, 06/20/2012 - 13:30 | 2544189 fuu
fuu's picture

I was just hoping to see the deer again today. Oh well, off to make some music.

Wed, 06/20/2012 - 14:04 | 2544341 mkkby
mkkby's picture

I also miss the popcorn chewing deer.  Come back deer!

Wed, 06/20/2012 - 12:38 | 2543877 Dr. Engali
Dr. Engali's picture

The markets are throwing a fit. No heroin today, maybe in August.

Wed, 06/20/2012 - 12:47 | 2543933 bdc63
bdc63's picture

what are you talking about?  the DOW is down 33 ... exactly where it was before the FED announcement ...

Wed, 06/20/2012 - 12:57 | 2543986 Dr. Engali
Dr. Engali's picture

Maybe you ought to look at a tick chart and compare it to my post time. I can't help it the equity traders are stupid enough to keep being played by Ben in hopes of QE in August.

Wed, 06/20/2012 - 13:15 | 2544096 amadeusb4
amadeusb4's picture

DOW 20 pts in the green now. Somebody likes TWIST and wanted more of it. Still think this will wear off next week.

Wed, 06/20/2012 - 12:50 | 2543952 fuu
fuu's picture

Which market is that? The one that is down less than 0.3% now?

Wed, 06/20/2012 - 14:05 | 2544343 mkkby
mkkby's picture

No QE until after the election.

Wed, 06/20/2012 - 12:39 | 2543881 tocointhephrase
tocointhephrase's picture

Zzzzzzzzzzzz

Wed, 06/20/2012 - 12:43 | 2543887 devo
devo's picture

This is exactly what I said would happen. Can't have QE with the market front running it. Their stupidity did the Fed's bidding. The hope of QE was enough to get stocks where Bernanke wanted them.

August will be interesting. Obama needs QE to win the election, but high gas prices could lose it for him.

Wed, 06/20/2012 - 12:49 | 2543948 T-roll
T-roll's picture

I don't think it was a dumb move.  Wall Street was able to make a little more money before the market tanks.  Now they can sell and wait for things to get bad enough to force Bennie Boy to announce QE 3. 

I would suspect that gas prices fall back around $3/gallon before this happens.

Wed, 06/20/2012 - 13:00 | 2544000 devo
devo's picture

But how does he announce QE3 and keep down gas prices before November? He needs to do both. Maybe Obama lifts gas taxes to play his Superman role. 2013 is going to be so brutal.

Wed, 06/20/2012 - 13:16 | 2544112 Matt
Matt's picture

Monetize the debts of the frackers, so they can bring more oil to market with lower debt levels? I guess that would be a bit too obvious if all of a sudden Chesapeake was borrowing money at 3%. Maybe they should become a Bank Holding Company so they can get direct access to the discount window?

Wed, 06/20/2012 - 12:40 | 2543890 takeaction
takeaction's picture

This movie has been going for too long.  We know the plot....lets get some action.

Wed, 06/20/2012 - 12:52 | 2543891 LawsofPhysics
LawsofPhysics's picture

Expected.  Goldman fleeces muppets yet again.

And with ZIRP, the capital mis-allocation and mal-investment continues.

Free money to save the banks and financial houses, as far as extending credit to the actual innovator, no soup for you!!!

Wed, 06/20/2012 - 12:41 | 2543892 virgilcaine
virgilcaine's picture

ol uncle buck is up and walking towards the punchbowl. not a good sign for risk.

Wed, 06/20/2012 - 12:40 | 2543893 TraderTimm
TraderTimm's picture

And.... bitcoin to new monthly highs. Thanks Ben!

 

Wed, 06/20/2012 - 12:53 | 2543970 LawsofPhysics
LawsofPhysics's picture

Ah yes, because it is backed by something real such as ....

oh wait, nevermind.

Wed, 06/20/2012 - 13:17 | 2544113 TraderTimm
TraderTimm's picture

Better than what you have in your pocket :)

I like comments like this actually, shows that I'm on the leading edge and not muddling through like the other 90%. Speaking of percent, my return on investment beats the living hell out of a crappy backed-by-the-govt bond or CD.

Stick with that low-yield strategy, I'm sure the government thanks you... by printing more, lol.

Wed, 06/20/2012 - 13:45 | 2544262 LawsofPhysics
LawsofPhysics's picture

"Stick with that low-yield strategy"

I don't remember giving you access to my portfolio.  Thanks for self-identifying as a useless troll.

Wed, 06/20/2012 - 14:47 | 2544552 TraderTimm
TraderTimm's picture

If you deal in dollar-denominated < anything >, you're using a low-yield strategy :)

Since operation twist is extended and the euro is about to implode, I'm sure you'll be just FINE.

I don't care whether you personally use bitcoin or not, more for me, in any case. At least MY choice of currency isn't run by a bearded maniac.

Wed, 06/20/2012 - 15:12 | 2544668 Iam_Silverman
Iam_Silverman's picture

"If you deal in dollar-denominated < anything >, you're using a low-yield strategy :)"

Well, except for the fact that GSE's and SAE's have a "Dollar" valuation stamped on them.  Their return seems to be outperforming over the last 10 years or so.

Wed, 06/20/2012 - 18:32 | 2545327 TraderTimm
TraderTimm's picture

Its more of an argument regarding the dollar's declining status, than anything else. If you can pick up the cash in front of the steamroller, go right ahead. I'd suggest looking into alternatives.

Wed, 06/20/2012 - 13:20 | 2544136 Matt
Matt's picture

As I understand it, the key advantage to bitcoin is that the money supply grows in a linear, rather than exponential fashion. 

Wed, 06/20/2012 - 13:44 | 2544248 LawsofPhysics
LawsofPhysics's picture

as opposed to existing debt which is growing exponentially and is used as money in the current system.  FAIL.

No "currency" backed by only "faith and confidence" will succeed when there is neither faith nor confidence in the market.  No rule of law, the currency must be back by something, period.  Return the rule of law (where is John Corzine) and only then will faith and confidence return.

Anything else is mental masterbation.

Wed, 06/20/2012 - 14:51 | 2544569 TraderTimm
TraderTimm's picture

The introduction of currency is controlled by an algorithm, not a bearded idiot who presses Ctrl-P every chance he gets. Best of all, there's a cap on total issuance, but since it is divisible to 8 or so decimal places, this isn't a problem.

The thing that amuses me about bitcoin haters is they just end up using the same foils that would expose their currency as a fiat fraud, while the blockchain protocol hums along sidestepping the central banker lunacy.

 

Wed, 06/20/2012 - 12:40 | 2543894 fonzannoon
fonzannoon's picture

No QE this year. That is obvious.

Wed, 06/20/2012 - 12:40 | 2543896 azengrcat
azengrcat's picture

Do you see what happens Benny?  Do you see what happens when you don't print more money?  *Market Crashes*  This is what happens, Benny!

Wed, 06/20/2012 - 12:41 | 2543901 Meremortal
Meremortal's picture

Saving the big ammo for the attempted saving of Obama in the fall.

Wed, 06/20/2012 - 12:41 | 2543902 SeverinSlade
SeverinSlade's picture

Did we not call it?  Goldman has been calling for imminent QE3 since QE2 ended.  Goldman was selling their equity exposure into the ramp fest.

Wed, 06/20/2012 - 12:42 | 2543906 Kaiser Sousa
Kaiser Sousa's picture

BORING!!!!!!!
FUCK U BERNANKE AND UR BITCH ASS BANKER COCKSUCKER BRETHREN..
Silver Biatchez......

Wed, 06/20/2012 - 12:42 | 2543909 Global Hunter
Global Hunter's picture

I can't wait until he has to reverse course and explain why they need another program.  I'm going to sit back and saviour that presser/statement

Wed, 06/20/2012 - 12:43 | 2543913 Jack oh Daniels
Jack oh Daniels's picture

Keeping powder dry to bail out Europe when Germany declines the priviledge!

Wed, 06/20/2012 - 12:53 | 2543972 Iam_Silverman
Iam_Silverman's picture

"Keeping powder dry to bail out Europe"

Alternately, could this be a sign that they have no powder left?

Wed, 06/20/2012 - 13:22 | 2544154 Matt
Matt's picture

They have a powder factory, they can make as much powder as they want; however, the more they make, the less powerful it is, so they still have to use it quasi-sparingly.

Wed, 06/20/2012 - 15:18 | 2544682 Iam_Silverman
Iam_Silverman's picture

I don't see it as a "factory", just a storehouse.  As they dilute the powder, it becomes less effective - as you have alluded to.  Could it be that the powder has been so diluted that it now takes a flare instead of a spark from flint against a steel frizzen to ignite it, and they don't want the world to be any the wider about it?

Wed, 06/20/2012 - 12:48 | 2543914 Archimedes
Archimedes's picture

Funny people sit around all day waiting for the Fed. The Fed is impotent. The reason he keeps doing the Twist is because the Bernank is petrified. He knows he is powerless to do anything to prevent the deleveraging, so he keeps dicking around shuffling paper.

Yet day after day all I hear is Gold is going to a million and QE3 is coming. Geez… 

Wed, 06/20/2012 - 13:06 | 2544048 ParkAveFlasher
ParkAveFlasher's picture

He's tried stimulating it, mouthing on it, prodding it, shocking it, easing it, lying to it, why not try twisting it again?  Maybe, it will grow.

Wed, 06/20/2012 - 13:30 | 2544192 rufusbird
rufusbird's picture

So the fed has become a market fluffer?

Wed, 06/20/2012 - 13:44 | 2544257 Biosci
Biosci's picture

has become a market fluffer?  Has been the market fluffer since the days of the Greenspan Put.

Wed, 06/20/2012 - 12:42 | 2543915 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Tyler, how can they do this when they can't?

Right?

I thought they didn't have enough short term debt to continue OT......

Wed, 06/20/2012 - 12:50 | 2543947 Everybodys All ...
Everybodys All American's picture

Short term debt is pretty much liquidated. Now they're looking at what I would consider Intermediate term (greater than 3yrs).

Wed, 06/20/2012 - 12:44 | 2543921 Mark123
Mark123's picture

I have a better description:

 

Fed agrees to continue extending 0% financing to primary dealers to buy short dated Treasuries so the Fed can buy longer dated treasuries from primary dealers that nobody else in the world wants.  The optics of a sound reserve currency will be maintained for a while longer.

 

Full ponzi mode!!!  Is that the sound of an empty tin can bouncing down the road?

Wed, 06/20/2012 - 12:53 | 2543968 Village Smithy
Village Smithy's picture

"Oh yeah, and if you have anything left at the end of the day, push it into either the Russel or the S&P"

Wed, 06/20/2012 - 12:45 | 2543924 Alejandrito
Alejandrito's picture

More? Moreeeee? the history of never end.

Wed, 06/20/2012 - 12:46 | 2543928 nomorebuyins
nomorebuyins's picture

S&P up 7% in 3 weeks based on QE rumors, and only gives back 1% on no QE news. Insert thrmometer in penis, and hit with hammer.

Wed, 06/20/2012 - 12:52 | 2543963 T-roll
T-roll's picture

Ouch!  The sell off might not take place until 3:00

Wed, 06/20/2012 - 12:56 | 2543984 Satan
Satan's picture

I actually felt that !

Wed, 06/20/2012 - 12:46 | 2543929 devo
devo's picture

Stocks rallying! haha

Wed, 06/20/2012 - 12:46 | 2543932 Abraxas
Abraxas's picture

I don't care. It don't matter to Jesus.

Wed, 06/20/2012 - 12:47 | 2543939 SDRII
SDRII's picture

Fed will wait until everyone is on vacation and the vapors turn ot a trickle to "surprise" the market. Commodities down equities hold. Fed pom poms out.

Wed, 06/20/2012 - 12:47 | 2543940 TWSceptic
TWSceptic's picture

Expected it, nothing new basically.

Wed, 06/20/2012 - 12:48 | 2543943 pingpongthesecond
pingpongthesecond's picture

bought puts, no change in value... stocks unch...

Wed, 06/20/2012 - 12:48 | 2543946 khakuda
khakuda's picture

So, $267 billion more until end of year.  That may be the extent of it unless things get really ugly since politics now get trickier with the US election.  For a few months we can focus on fundamentals instead of the arrival of the tooth fairy.

Wed, 06/20/2012 - 13:11 | 2544067 Rip van Wrinkle
Rip van Wrinkle's picture

Not according to CNBS you can't. 'QE is all in plave' - Pissonme

Wed, 06/20/2012 - 12:49 | 2543949 vincent
vincent's picture

The racketeers created the monster.  The monster has turned on them.

Their creation will be their destruction.  They have no idea what to do.

We may not be able to see their panic, but the smell is getting stronger.

Wed, 06/20/2012 - 12:50 | 2543951 crawldaddy
crawldaddy's picture

the definition of insanity....

Wed, 06/20/2012 - 12:50 | 2543956 Eurodollar
Eurodollar's picture

Dont worry: Von Rompuy has a blue print for euro bills ready. SPIN SPIN SPIN! WIN WIN WIN!! Let it riiiiiiiide.

Wed, 06/20/2012 - 12:52 | 2543958 JackT
JackT's picture

Release the Kraken!!  We need it now!!

Wed, 06/20/2012 - 12:51 | 2543960 Bam_Man
Bam_Man's picture

Not enough juice in that dose.

Wed, 06/20/2012 - 12:53 | 2543969 CvlDobd
CvlDobd's picture

Brian Sack with an ES stick save! That'll move the equity chains!

Like it never happened bitchez! Damn I love STAWKS! Fuck metals! Buy these hot ass domestic stawks!!!!!

Wed, 06/20/2012 - 12:56 | 2543982 CvlDobd
CvlDobd's picture

Oh yeah Nasdaq goes green with copper down 1.5%. Stocks for life!

Wed, 06/20/2012 - 12:53 | 2543971 you enjoy myself
you enjoy myself's picture

aaaaaand the market is now 10 minutes away from going green....

this shit really is going to levitate forever.   btw, don't forget they mentioned "inflation is low".  aka, keep front running QE because you're going to get it eventually, you magnificent bastards.

Wed, 06/20/2012 - 12:56 | 2543975 midgetrannyporn
midgetrannyporn's picture

the bernank plans to make a weiner dog out of the yield curve eventually. http://dreamdogsart.typepad.com/.a/6a00d8341c192953ef0148c7c8afc9970c-450wi

Wed, 06/20/2012 - 12:55 | 2543976 bigwavedave
bigwavedave's picture

Green

Wed, 06/20/2012 - 12:56 | 2543978 falak pema
falak pema's picture

lets twist again;... buy my new lamps for your old lamps...Aladin Bernanke!

Wed, 06/20/2012 - 12:57 | 2543985 Iam_Silverman
Iam_Silverman's picture

So, when's the selloff in equities, as folks move into Treasuries - knowing that there will always be a buyer for them?

Wed, 06/20/2012 - 12:58 | 2543989 daneskold
daneskold's picture

What a joke!

 

The implicit promise of more QE ramps the market 7%, gets a cold hot dog and likes it!

 

Double or nothing Bernanke Smails eats it!

 

 

Wed, 06/20/2012 - 12:59 | 2543997 bnbdnb
bnbdnb's picture

$267B > 0. People see this as QE.

Wed, 06/20/2012 - 13:00 | 2544001 JohnKozac
JohnKozac's picture

...as The Depression Deepens into a Downward Death Spiral.....

Wed, 06/20/2012 - 13:02 | 2544011 virgilcaine
virgilcaine's picture

stcks refuse to believe.. they are in for some pain.. get the big stick.

Wed, 06/20/2012 - 13:02 | 2544014 Snakeeyes
Wed, 06/20/2012 - 13:06 | 2544049 Satan
Satan's picture

Oh good fucking grief! Being short is like being Charlie Brown trying to kick the football!

When the bears finally get their day in the sun it's gonna be ugly...

Wed, 06/20/2012 - 13:35 | 2544212 oddjob
oddjob's picture

Kick Lucy in the face.

Wed, 06/20/2012 - 13:06 | 2544051 sschu
sschu's picture

WTI is off 2.5%, this is all you need to know.  Until the price of oil is firmly below $80, no real QE action can be taken.

Bennie is boxed in, they are trying to keep the market levitated while driving down the price of commodities.

The election is the only thing that matters right now.

sschu

Wed, 06/20/2012 - 13:12 | 2544077 Village Smithy
Village Smithy's picture

The only "flow" in this market is the money being lost by shorts being mercilessly squeezed. We have a perfect storm for shorts; lots of reason to short, that keeps the short positions being taken and retaken over and over. But billions in free ZIRP money to start the reverse cascade with. This will keep happening until the SHTF for real and serious profit taking starts

Wed, 06/20/2012 - 13:32 | 2544201 you enjoy myself
you enjoy myself's picture

reminds of the NFLX pattern.  it was nothing but a contiunous squeeze from about $150 to $300 - no actual buyers the whole way up, just forced buyers.  each new round of shorts just couldn't help themselves, it was just too insane a valuation.  then the shorts finally capitulated about a week before they gave a poor guidance report, and it cratered to $60 in about a month.

Wed, 06/20/2012 - 14:26 | 2544473 Village Smithy
Village Smithy's picture

Exactly, when all the shorts are forced out there is no buying to cover on the way down. That creates free-fall.

Wed, 06/20/2012 - 13:16 | 2544098 virgilcaine
virgilcaine's picture

It's all about the Sp 10 Yr. Until it bloows over 7% again.

Wed, 06/20/2012 - 13:16 | 2544108 MFL8240
MFL8240's picture

Believe nothing from this group.

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