• Sprott Money
    05/06/2016 - 06:03
    The US, in its own decline, is showing this same self-destructive tendency. The worse things get, the greater the inclination of the citizenry to say, “Carry on, everything’s fine.”

Fed Folds: Will Do Open-Ended MBS Buying, Extends Operation Twist

Tyler Durden's picture


Bernanke has acquiesced and is now the 4th branch of the status quo- and all is well in the world:


To summarize:

  • The good news: The Fed's NEWER, OPEN-ENDED and NEVERENDING QE is bigger, longer, and has a Retina display (however its battery life is far shorter).
  • The bad news: The Fed has now confirmed it is merely a sad, political, self-frontrunning caricature of what a central bank should be.




S&P 500 Cash    1437.9
S&P 500 Futures    1437
Dow    13345.43
10Y    1.7247
5Y    0.6522
30Y    2.8815
EUR    1.2895
MBS Spread    0.57993
Gold    1724.35
Silver    32.77
WTI Oil    97.23
USD Index    79.70237
Apple    676.91

Full statement link.

Full redline comparison to the August statement below:

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Thu, 09/13/2012 - 12:34 | 2790140 malikai
malikai's picture

Gross just came.

Thu, 09/13/2012 - 12:34 | 2790149 tsx500
tsx500's picture

god what a disturbing visual  

Thu, 09/13/2012 - 12:37 | 2790166 camaro68ss
camaro68ss's picture

Hyperinflation here we come baby. Destination, Emerika Bitchez

Thu, 09/13/2012 - 12:37 | 2790189 kaiten
kaiten's picture

QE to infinity and beyond.

Thu, 09/13/2012 - 12:41 | 2790222 AllThatGlitters
AllThatGlitters's picture

It looks like Gold and Silver to infinity and beyond:


Look at gold shooting higher in real time:  




Nice for those holding bullion before the announcement!

Thu, 09/13/2012 - 12:43 | 2790239 fuu
fuu's picture


Thu, 09/13/2012 - 12:45 | 2790265 unrulian
unrulian's picture

...more like Cock-meat sammichez Bitchez

Thu, 09/13/2012 - 12:52 | 2790336 redpill
redpill's picture

Dropping dickburgers out the whirlybird, yeeee hawwww

Thu, 09/13/2012 - 12:54 | 2790348 RSloane
RSloane's picture

Ugh....Jesus Christ...my egg salad sandwhich for lunch feels so inadequate now.

Thu, 09/13/2012 - 12:58 | 2790377 Michael
Michael's picture

Let's not forget what set off the Muslim countries revolutions.

Reason #1; Police and Government Tyranny and Torture.

Reason #2; US Federal Reserve Corporation exporting food inflation with their monetary policy all over the planet.


Suicide that Sparked a Revolution



Justice for Khaled Said, End torture in Egypt


Thu, 09/13/2012 - 13:02 | 2790413 dwdollar
dwdollar's picture

Why don't they just extent ZIRP to the year infinity???

Thu, 09/13/2012 - 13:16 | 2790538 Stackers
Stackers's picture

Holy barbarous relic Batman !!!

Thu, 09/13/2012 - 13:22 | 2790592 Dalago
Dalago's picture

How did it end for the Roman Empire, again?

Thu, 09/13/2012 - 13:24 | 2790613 Gief Gold Plox
Gief Gold Plox's picture

If only we could have a South African nation-wide miners strike in the near future. Oh wait...

Thu, 09/13/2012 - 13:31 | 2790677 redpill
redpill's picture

"The Fed has now confirmed it is merely a sad, political, self-frontrunning caricature of what a central bank should be."


What it should be?  How about killed?  Where's Andy Jackson when you need him....

Thu, 09/13/2012 - 14:02 | 2790879 JLee2027
JLee2027's picture

When JP Morgan's short position goes belly up in the Silver market, that will kill enough Banks to make Andrew Jackson proud.

Thu, 09/13/2012 - 13:31 | 2790673 Spastica Rex
Spastica Rex's picture

I can't remember exactly, but I think Alexandria was involved.

Thu, 09/13/2012 - 13:18 | 2790564 Glass Steagall
Glass Steagall's picture

Um, cuz that didn't work. Now you get NIRP, bitchez.

Thu, 09/13/2012 - 12:58 | 2790379 Sofa King Confused
Sofa King Confused's picture

Can anyone explain why everybody is soooo excited about the FED buying MBS.  Does it really do anything else then just clear toxic shit off of bankers books?

Thu, 09/13/2012 - 13:00 | 2790398 viahj
viahj's picture

that's all it does.  that's all that QE was intended to do.  that is all the the Fed does (support ownership banks).

Thu, 09/13/2012 - 13:15 | 2790516 Michael
Michael's picture

Because this is my fucking Plan!

To have the Federal Reserve Corporation stuffed to its fucking rafters with mountains of stinking fecal toxic waste matter, that it destroys itself from within and blows itself up.

It's a very complicated plan. I've been working on this plan a very long time.

Now just go along with it and shut the fuck up about it.

Thu, 09/13/2012 - 13:03 | 2790427 nope-1004
nope-1004's picture

And where does the toxicity go?  It can't just disappear.  Someone, somewhere, is on the hook.  And that somoene is you and I, which we will never pay, so the only avenue to resolve is inflate away the debt.  Default won't happen, and neither will repayment.


Thu, 09/13/2012 - 13:08 | 2790476 hannah
hannah's picture

the fed cant lose money on mbs...they just print what they lose. we are the ones that take it up the ass with depredciation of the currency.

Thu, 09/13/2012 - 13:28 | 2790654 KickIce
KickIce's picture

They don't care, it's imaginary money that they can trade for real assets.  It's worse than monopoly money, at least you have to work to buy the game.

Thu, 09/13/2012 - 13:46 | 2790763 eatthebanksters
eatthebanksters's picture

Repeat after Ben."Taxpayers are cunts...let them pay while we dine in the ivory towers!."

Thu, 09/13/2012 - 13:43 | 2790744 JohnKozac
JohnKozac's picture

MBS buying now ....$1 trillion of Student Debt and Defaults to be bought next year (is my guess) .....Fed balance sheet will double (at least) again by 2015.

Thu, 09/13/2012 - 12:58 | 2790381 smlbizman
smlbizman's picture

i guess that home improvement loan just came through to fix up iran ...

Thu, 09/13/2012 - 12:59 | 2790394 nope-1004
nope-1004's picture

Imagine where gold and silver would be if allowed to trade freely, in an uncorrupt, open, market.  THE US ECONOMY IS A PONZI.


Thu, 09/13/2012 - 13:11 | 2790500 RSloane
RSloane's picture

What do you mean 'the US economy"? Try the global economy.

Thu, 09/13/2012 - 13:01 | 2790378 knukles
knukles's picture

But the shit storm arrives.

Just think of it as in connect the dots.

Armageddon Ahoy!

Global monetization for all intents and purposes.
Gotta monetize any shocks to the system.
In other words (will date me, but the oldsters will remember the '70's oil embargoes and printing press reactions) gotta sterilize any increases in the price of oil...
Why's that Uncle Knukies?
Because my little one, with the Mid East going all bat shit killing people, invading US Embassies (sovereign territory, remember) over a film nobody ever heard of (false flag incendiary fuse?) then it would seem that the Islamists are mad as hell and not gonna take it anymore, some Western country (singular) is getting pissed on, which just so happens to have a fuckload of military might in the area....

And you all thought it was gonna be the Enterprise on the bottom.
Not so fast, me buckos.

It couldn't be any damned smoother.
Just like maybe the most relevant modern invention...
Stool softeners...
The shit flows really really effortlessly, so much you get to enjoy it, no unwarranted distractions....

Booyah, Motherfuckers!

Gog and Megog Ahoy!

Thu, 09/13/2012 - 13:33 | 2790686 Spastica Rex
Spastica Rex's picture

Apocalyptic +1

Thu, 09/13/2012 - 13:48 | 2790780 eatthebanksters
eatthebanksters's picture

knukles, I always appreciate your unique and excelllent perspectives!

Thu, 09/13/2012 - 15:00 | 2791353 knukles
knukles's picture

Thank you, eatthebanksters.
While accolades and recognition are not something I overtly search for any longer (I'd tried that unsuccessfully for way too long!) and in fact are unattainable within a shroud of anonymity, the satisfaction of a job well done is a gift borne by comments such as yours.   Even as a casual observer of the human condition, a compliment here and there is appreciated. 

Thu, 09/13/2012 - 13:12 | 2790489 halleys5
halleys5's picture

Nah, SOYLENT GREEN Sandwiches for everyone!!

Yes, implying that we are being force fed our own decaying future. 

Thu, 09/13/2012 - 12:45 | 2790266 saturn
saturn's picture

Penis extension to 2050.

Thu, 09/13/2012 - 12:47 | 2790290 knukles
knukles's picture

Nothin' could be finer
than to goose the metals and minahs
in the moooooo-or-nig


Holy B. Jesus, gonna let it all hang out!

EU/ECB/EMS/Whatevrethefuckallthemacronymsstandfor print print print

Fed Bend over and Open-ended print print print


What could go wrong?
This is gonna end badly.

So sayeth the Knukles.

Thu, 09/13/2012 - 12:53 | 2790341 FoxMulder
FoxMulder's picture


Playbook for the banks: buy more bonds and fire evryone.

Thu, 09/13/2012 - 13:08 | 2790478 azzhatter
azzhatter's picture


Thu, 09/13/2012 - 13:12 | 2790518 Urban Redneck
Urban Redneck's picture

At only 0.5 TRILLION per year it will take Ben till hell freezes over to muck all the shit out of the banks.

Sooner rather than later (after the election)... and he already has the benevolent sounding excuse/cover ready to go.

Thu, 09/13/2012 - 13:23 | 2790603 bugs_
bugs_'s picture

0.5T - perhaps there is one bank they are worried about.

Thu, 09/13/2012 - 13:13 | 2790525 Citxmech
Citxmech's picture

Keep reducing the labor participation rate - unemployment solved!

Thu, 09/13/2012 - 12:47 | 2790268 TruthInSunshine
TruthInSunshine's picture

I guess I'll cut against the consensus here and just state that today's announcement, which focused on MBS, was an explicit admission that The Bernank & Gang are not committing to bridging the upcoming fiscal cliff (as of today, at least).

Unless the Fed turns Twist into steroid-injected Twister, the debt ceiling and deficit spending of unknown quantities going forward have not been addressed.

Let us see how this shakes out, but by focusing on MBS and not treasuries, this really could be a very big and tangible sell the news event, regardless of initial, kneejerk reaction.

Thu, 09/13/2012 - 12:52 | 2790337 Alea Iactaest
Alea Iactaest's picture

And I'll just mention that the crystal ball was on full power yesterday:

Wed, 09/12/2012 - 16:08 | 2787227

WTF on VIX120919P14 ???


VIX now well under 15... LMAO

Thu, 09/13/2012 - 12:57 | 2790367 JPM Hater001
JPM Hater001's picture

Sniff snifff sniff***

Something is rotten in the state of Benmark...

Thu, 09/13/2012 - 12:55 | 2790356 sosoome
sosoome's picture

Something tells me this is more about banks than goobermint. Then there's this little nugget from a few days ago refered to as Collateral Transformationhttp://www.bloomberg.com/news/2012-09-11/bny-mellon-says-derivatives-may-need-4-trillion-more-collateral.html

Thu, 09/13/2012 - 13:10 | 2790496 hannah
hannah's picture

thats what i was thinking......the shadow banking systems was getting close to something bad happening....

Thu, 09/13/2012 - 13:57 | 2790848 RopeADope
RopeADope's picture

Historically 75 to 80 percent of derivatives have zero value. This means that the shadow banking system needs another 500 trillion in collateral.

Thu, 09/13/2012 - 12:57 | 2790368 RSloane
RSloane's picture

No problem, the only consensus so far has been about dick burgers.

Thu, 09/13/2012 - 13:03 | 2790406 defencev
defencev's picture

Sell signal? Dream on. B is desperately trying to keep O in the office. I just hope there will be a huge spike in oil prices which will bury Barry Presidency no matter how much of oil reserves freed up. Well, since we cannot do anything about that,

let us make some money.

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