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POMO.... It's BAAAAAAAAACK
You didn't think the Fed would let more than a few months pass without the much beloved and dearly missed near-daily POMOs now did you. The FRBNY's Brian Sacksters just released the October schedule of $44 billion in long-dated purchases, and $44 billion in short-dated sales. Since the net effect to banks is one of derisking, the offsetting rerisk will be implemented in the form of more stock purchases. Hopefully their prop desks (which no longer exist, right, after all the whole Volcker Rule thing and the UBS fiasco...) will know how to trade Netflix this time around better than last time.
POMO buy dates and amounts:
And POMO sell dates and amounts.
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Pump it, hottie.
WAHHAHAHAHAHAHAHA!~!!!!
STOCK IS GOING HIGHER!!
BTFD!!!!!
Brian Sack & Ben Bernank's latest helicopter mission.
The Bernank's Midnight Helicopter RunWhat are you doing with my highly unique and very personal avatar?
I have been using this highly unique and very personal avatar since the FU*KING DAY ONE, ONE F*KING YEAR AGO you NEWBIE!
GET A CLUE
Tyler, please..., give us the power of ignore!
Why ignore the entertainment value of lame trolls fighting each other over avatars? Have a good weekend!
Speaking about highly unique and very personal avatars...
not to worry
That made my avatar moist. Now I'll have to buy her flowers, you clod.
the bull market will return, the underlying pressure is building.
http://expose2.wordpress.com
44B?!?! Really?!?!?! And you folks think it is enough?!?! Ahhhh Hahahahahahahh!!!!!! And so on!!!!
It isn't a matter of pumping money into the economy anymore, it is a matter of lowering debt service costs. Remember that the Fed returns the interest payments it receives from the Treasury - to the Treasury. So the effective interest cost on Fed UST holdings is zero (plus some skim from the Fed).
With an effective debt service cost of zero, debt can be increased to infinity as long as it can be rolled over when it matures. Which of course it can if the Fed never shrinks it balance sheet.
But they take a 6% cut...it adds up.
"NEW YORK ON 'ALERT' FOR AL-AWLAKI REVENGE ATTACKS, NYPD SAYS -BBG"
Widen your profit targets just in case if NYC gets hit with a nuke.
The Hell. That would be max bullish. Krugman could even call off the alien invaders.
Sorry NY-ers, just joking. Right-coasters, who luvs ya baby?
Does anyone beleive tbt will fall enough to reverse split?
When your only tool is a printer, every problem looks like a blank sheet of single-ply linen.
Winner.
but the printer ran out of ink!
Yes this is what I have been waiting for. $44 billions seems light. When are we going to get in to the trillions?
POMO = So You're Sayin There's a Chance?
STFP(sell the fucking peak)
POMO needs to be 200 billion a week, at this point, to perpuate the Ponzi.
And if it were as large as that, the boomerang effect of soaring inflation would kill the global economy at any rate.
Good luck, dead fed heads! Good luck, CNBSc! Good luck, Barton Biggs! Ciao, banking sector and PIIGSFUK eurotrash.
Agreed, which is why we will eventually see more QE - the Fed needs to fund the US Govt.
auw oh!
:)
POMO needs to be 200 TRILLION a DAY bitches!
If you are going to play, play hard. If Fed really believes in themselves, why mess around with 6month cycles? Just print all they want in one day!
We may have to upgrade all computers in order to support extra zeros at the end of all prices
.
TruthInSunshine: Never to distract from zerohedge, however I enjoy your comments and insights. Do you have your own blog or website?
"the boomerang effect of soaring inflation "
Could that be why they had to crash the commodity sector in the past several weeks? Get the inflationistas off Bernanke's ass and give him more leeway to print like mad ($200 billion per week, month, quarter). Gotta stop that nasty corn, copper, and concubine deflation.
You know if I was the Chinese..and I wanted ot tank the USA and takeover the world .... or at least have them use my yuan....I would be buying gold bigtime right now...I would wait until the USA bought all the long bonds..and sold only short ones....then I would dump all my holdings to jack up the interest rates which would in turn put the USA either into hyperinflation as the Bernank would have to print to buy all the dumped bonds...and/or the deficits would skyrocket......our dollar would tank...probably some other options...China could survive the loss...we could not...
Precisely, but this would not be the end of the world. Such action is anticipated in accordance with the plan of weakening the United States of America in preparation for the coming World War with China.
We will need an equilibrium, so we don't wipe ourselves out.
China doesn't want more gold. China wants war machines now so US doesn't come in later to "liberalize" China from communism and steal gold.
Buying gold in size is difficult.
Oh how soon we forget:
http://www.zerohedge.com/news/wikileaks-discloses-reasons-behind-chinas-...
So you think they can buy idk say 5k tonnes of gold at todays prices on monday?
China will keep playing along until they are satisfied with their gold holdings, which will take them some time to get.
BAC website is down... LOL
http://www.abc17news.com/news.php?id=3814
Bank of America's homepage and online banking service are experiencing problems, a day after the bank said it would start charging a $5 monthly fee for debit card purchases.
Prolly hacked. I hope somebody took a virtual shit on them ;)
i hope someone adds a few extra 0's to my balance so that i can just buy shitload of PMs and retire so that i won't have to deal with this bullshit "market" any longer.
You get Red for admitting to banking with BAC, fix that shit and I'll consider giving you a friendly emoticon.
Yep its still down.
When I cancelled my db card they acted shocked, shocked!
actually them charging for debit card use is good , you can still use cash from one of their atm machines.
If debt cards went away Friday your cost would go down.
biz is killed with the cost of supporting those networks.
Use cash and hope all plastic fees go to 1000.00 a month.
um ... yay?
One thing I never hear anyone a talk about is the relationship between the stock market and the government's massive public pension liability. Remember these are those brilliant "defined benefit" plans. Am I wrong to think the Government is desperate to prop the equities markets for this reason?
Either the assets apprecitae or at some point the Fed monetizes, no way out, well other than defaulting on promised entitlements - like that will happen.
No question the FedGov has been supporting the stock market since Obama/Geithner finally took over, for the reason you mention - they need to support the pensions (and the university endowments, and the insurance companies, etc).
I think it is no coincidence the markets bottomed in March 2009, before Geithner fully got things under his control. Now, every selloff is tamed rather quickly before it spirals out of control.
Really, it's not just the pension funds. Everybody and their mother is tied to either a pension plan or a 401K. The natives are already getting restless, if this fucker doesn't close out the year green, it would be yet another blow to the fundamental structure of the debt/finance system that is effectively our shadow government. It is factually correct to state that our current governmental system is directly tied to the fortunes of the stock market.
if you had your money in low rick bond funds such as the aggregate bond index you are on track for 8% YOY performance.
But my suspicion is that Fed is going to juice it at the end of the year AND/OR Euro bailouts will be defined by end of the year so banksters can call it green....which will bring up SPY 8-10%.
http://stockcharts.com/c-sc/sc?s=AGG&p=D&st=2011-01-01&en=%28today%29&i=...
This is not expanding the Fed's balance sheet so it won't pump up stocks, just a way to help the banks even more.
sshhhhhhhhhhhhhhh...............banks pump stocks.
Interesting that Sprott sold out merely days before the May silver smash, and now again before the Sept silver smash.
Also Interesting how there have been no follow-on physical silver purchases recently as their have been with his gold fund.
What do you think the chances a certain bank is offerring advanced knowledge of their impending silver raids in exchange for relief from further physical purchases?
No doubt Sprott is placed well enough has some kind network feeding him information.
It would be interesting to see what kind of controls in place to keep him being played for a mark (ala "the wire" con from The Sting).
Brian Sach.......the helicopter pilot.
does pomo increase feds balance?
does the Pope shit in the woods? NO! ... wait...
It looks like they are cancelling out in this case but the ranges are not precise so you can't really say until the purchases are completed and besides this is going to be an ongoing exercise. They said 400 billion and here it's 44 billion or so to "twist".
The purchase operations are of very long maturities, 2017, 2019, etc, and they are twice as many, but note, that the sales operations of the short maturities e.g. 2012, 2014 are more than twice the size on each line.
love the avatar
they basically net out...
They net out but the buying is prior to the selling so its like they are increasing the balance sheet for 3-4 days prior to netting out the balance. Its like they are building some float. Even if it isnt that much.
thanks, thats what i figured.
All trading is ovserving the past and predicting the future. based on this anyone who isn't long NFLX or APPL or any of the momo stocks is just throwing money doen the toilette.
LOLOLOL!!!
FCX, one of the best copper producers, near a 2 year low. Geesh
I was wondering all day what the 3pm rumor du jour ramp stocks 2% in the green would be.
Can't let it fall, go hackey sac market.
Euro Devaluation
The European sovereign debt crisis will trigger a devaluation of the euro against the U.S. dollar, which would impact U.S. exports. Europe is the largest export market for the United States. Depreciation in the euro will make American exports to Europe more expensive, which would significantly weaken the only remaining engine of growth for U.S. economic recovery after the U.S. government ended its stimulus package. Total U.S. exports accounted for more than one-third of American economic growth in 2010 and helped the economy recover from the Great Recession.
http://thetriangle.org/2011/09/30/european-recession-may-spread/
People totally miss this is Treasury buying neutral (assuming they are telling the truth)
Treasury still needs to find $120B in new buyers every MONTH ($1.5T deficit).
QE2 bought them some time...but this new Twist program doesn't expand on QE2.
Bullish on Trees.
oh c'mon tis... you don't like that handsome fella b biggs... he always makes an appearance on cnbc, when no one else dare appear on show lol
Over the past decade, if you were bullish cocaine, marijuana, meth, oxy and mushrooms you would be doing great.
What war on drugs?
My pot is cheaper now than it was ten years ago...
Please..this is just pissing in the wind. I doubt this will be very market moving.
dead markets don't move they do twitch though.
3:00 PM pump is on bitchez...
what a fucking fraud...
not today
They may have applied the tourniquet a bit too late. I see some blood flowing still.
Is it just me or does anyone else see how often in the last month buying comes in to protect 1140 on the S&P. Today 9/30 is a good example. Twice now!
So Monday, Tuesday, Wednesday we rally and on Thursday we take profit? Friday rally into the weekend?
Just like the good ole' days of 2009!
How does it exactly work with the Fed's balance sheet and POMO?
You can google POMO but mostly you will find articles that credit Zero Hedge with their information. The best place for a summary of all POMO elements is the search function of ZH. Good stuff in the archives.
How does it exactly work with the Fed's balance sheet and POMO?
FED trying to put on a brave face ..
St. Louis Fed's James Bullard says the central bank is prepared to ease policy if necessary, noting that "the Fed has potent tools at its disposal and is not now, or ever, out of ammunition." But he objects to decisions such as the commitment to keep rates low until 2013; central bankers should adjust policy over shorter time frames, he says, given economic uncertainties.
Warren Buffoon just farted in his bubble bath . . .
S&P500 updated chart at blog shows price converging towards apex.
It should drop out of triangle and resumption of downtrend.
http://stockmarket618.wordpress.com
http://twitter.com/grandsupercycle
So, do I hold my Long trades into the weekend? Hmm.
Big take down in last few minutes of trading. Or, was that the set up for next week?
I think Markets will be in green 75% times every week as POMO will do its job. Ben has just twisted the name, but the purpose is basically to pump the markets.
Any thoughts from the readers here ??
First sell (price drops), then buy cheaper. Has the selling finished? How much of OT2 (operation twist) has been priced in?
The FED purchases 5 to 6 year assets in QE2, then goes to sell 3 or less year assets and buy 6 to 10 and 20 to 30 year assets. Roughly 75% of 3 or less years will be sold!
QE2
http://www.newyorkfed.org/markets/opolicy/operating_policy_101103.html
OT2
http://www.newyorkfed.org/markets/opolicy/operating_policy_110921.html
So, who will keep the near term curve down? Does the FED hope/ know some1's can do that? European banks need 7 day liquidity loans ... but that could put more pressure on dollar demand. Or is that just printed on paper/ typed on screen?
This swaping near term bills/ notes (paper) for Benjam's (paper) = dollar shortage? (i.e. near term paper swap = paper currency demand up)? This is like QE long term, and QT (quantitative tighting) short term, hence "twist". If a 'liquidity trap' is occuring (ie. insufficient credit demand), then may be pumping short term % rates on savings is a good thing? And try get more loans going for longer.
Is a cubic curve coming:)
I'm going short paper, or am I better long? F**k
Pushing on a string.
Fuck the (intentional lower-case "f") fed. They're a collusion of thieves stealing our wealth through planned inflation. Every single action they take is simply an act of self-preservation. They don't give a shit about us. I don't give shit about them.
Fuck them all. Each and every one of them. Fucking traitors. They should be hanged, drawn and quartered.
Either what you said or the fed is grappling with the problem of Peak Oil, the undiscovered Boulevard from whose dead-end no vehicle returns.
I don't understand your reply.
What does wealth destruction through planned inflation and fiat currency destruction have anything to do with peak oil? Do you think the fed is trying to discover the next elephant oil field and/or create some alternative to fossil fuels through monetary policy?
Yeah, that'll solve the issue of peak oil! Who needs oil when you can just fill up your tank with worthless paper!
Wait. I don't think my car's engine is a flex-fuel/FRN car. Do they sell conversion kits for that? You know, like running your diesel car on vegatable oil by changing a few hoses? If so, print, print, print!
Sorry to be such an obtuse writer. Let's agree that Peak Oil is a fact for this argument. There is a date certain for the time that trouble breaks out between countries that have more oil and those that have less. No one knows that date although some (militaries, international oil companies) have a better idea than others (me, you, Tyler).
But everybody knows that the eventual arrival of Peak Oil MUST BE KEPT SECRET FROM 99.99% of the peeps. Or panic rules.
,
TO DO THAT................BUSINESS AS USUAL...........PRETEND
The markets are probably fixed. Half the players are losing. The other half
are making money. You want to play? If you're not onthe side of the crooks, you lose. Fundamentals have nothing to do with it. There is only one fundamental now: PEAK OIL.
Don't understand the dollar? Inflation? Deflation? It all doesn't mean a thing. The fed and all the other central banks are working together to keep as many of the 7 billion of us as unpaniicked as possible as long as possible
Remember the fed hasn't printed any money, they have only credited the accounts of their client banks. If there are no wheelbarrows full of million dollar bank notes, AND no other central bank calls PENGO (hyperinflation), life is going to be as good as it can be with the sword of Peak Oil dangling over our heads.
Someplace else I said that what we are seeing is the suppression of the
demand for crude oil to make what's left last longer, while the global economy is pretending that everything is normal.
We're all in this together, so why not make this mess as enjoyable as possible?
Unless there's a revolution, this is the worse case scenario. Unless there's a
revolution, it can only get better than this.
I'm working on a more understandable rant. (ha ha) Stay tuned. :o)
Thanks for the reply. That does clear up my misunderstanding of your first reply. The first reply came across, as you mentioned, a bit obtuse. I apologize if I came across as an ass.
I'm with you on energy depletion. I too am one of those "crazy" peak-oilers who understands that reserves are finite, and that the earth is round. On peak oil, I find it so very interesting to see so many people choosing which science/math to believe. It makes no sense to me. To say Hubbert's peak is bunk is to claim that 2+2=5. Math is not personal. It doesn't care about anyone's misguided beliefs. Alas, the abiotic fossil fuel pollyannas will argue that 2+2=5 until they're six feet under.
Now, on to the fed.
Do you REALLY think the primary motive behind their actions is to quell the masses' response to peak oil? If so, how the hell does inflating the price of oil through inflation via QE, POMO, and yes, de facto money printing help in any way? Are you claiming they're intentionally making oil, and all commodities, more expensive in an effort to wean everyone off of them? I'm sorry, but again it makes no sense to me. Starve the masses to ease their pain?
The fed doesn't give a shit about us or peak oil or anything other than keeping thevsheeple in the dark and preserving the status quo.
If you came across as an ass (your avatar, too), then call me Titania. :o)
Whether peak oil comes in 5 years or 50 years, our behavior must be scrupulously orderly. We must live exactly like we would if there were no Peak Oil. In that way, there will be less displacement and dislocation of those whose lives still have the semblance of order. And there will be fewer who lost that semblance. Pretending that it's not a Peak Oil problem, but for appearances, that it's a terrible global economy. (Maybe I should I shut it?)
It may be that those who don't believe in Peak Oil will be happier than those who do. Their denial involves getting huffy at Peak Oilers, and searching everywhere for corroboration of their view, and not thinking that the end is as near as Peak Oilers do. And trading their markets.
Abiotic oil. Can you believe such a thing?
The Fed! First you have to under stand that the Fed is not running the show in this country. Nor Wall Street. Sometime between 1971 when Hubbert's dread prediction came true and, say, Greenspan's 'irrational exuberance', this moved into the hands of the U.S. Military.
You see peak oil doesn't occur when the turkey baster sucks out the last drop, it's when the Army says the rest of it belongs to us. Sure, they'll give some to the farmers, but keeping their birds in the air is the name of the end game.
You say
"The fed doesn't give a shit about us or peak oil or anything other than keeping thevsheeple in the dark and preserving the status quo."
And I am saying they are "keeping the sheeple in the dark and preserving the status quo', for the good of most of us and not to our detriment. Doesn't a parent of young children will keep them in the dark and try to maintain the status quo when it is necessary? No one can admit to needing the tough economic love the Fed now has to mete out. Can you imagine what life would be like today if 5 out of the 7 billion of us believed the world would soon be out of crude oil?
My guess is that right now there is some agreement by the central banks to let certain governments print as much as they need to keep their seniors alive and their welfare recipients sheltered and fed.
There is no hyperinflation in the U.S.A. until one of the other central banks CALLS HYPERINFLATION.
The markets in America and around the world are now nothing but a dumb show. The bids are real. The offers are real. The profits and losses are real. The commissions are real. But they're irrelevant because Peak Oil Rules.
Gold at $2000. The Dow 3000 points off it's all time high. I've been in the market for a long time. It was rigged when I started; it's rigged now, except now there is more shit to be crooked.
I know this sounds very simplistic, but imagine a large USA corporation that everyone knows is bankrupt. Every day the management comes to work and places orders like what it usual and continues to sell its products like usual. Most managers are looking for other jobs, but until they get other employment they show up at 9:00am and collect their paychecks. It's make believe to them, but they go through it until the other shoe drops.
The good news is the world is finally working together for a common good. Wouldn't you know it would be just before the end.
Daily Hamlet
"This quarry cries on havoc.
O, Peak Oil what feast is toward in thine eternal cell,
That thou so many peeps at a shot
So cruelly has struck"
I'll try to explain things better in a later post for you.
It's called "Metaphor on the Bounty." A week or two. I'll wait till I see your
sulfurous name and lovely avatar. :o)
please don't forget you can alter coal to oil. therefore the supply of oil is 4really large. it's not about peak, it's about cost to supply (at this point)
Wikipedia does not even mention coal as an unconventional source of oil
"Unconventional sources, such as heavy crude oil, oil sands, and oil shale are not counted as part of oil reserves. However, with rule changes by the SEC,[65] oil companies can now book them as proven reserves after opening a strip mine or thermal facility for extraction. These unconventional sources are more labor and resource intensive to produce, however, requiring extra energy to refine, resulting in higher production costs and up to three times more greenhouse gas emissions per barrel (or barrel equivalent) on a "well to tank" basis or 10 to 45% more on a "well to wheels" basis, which includes the carbon emitted from combustion of the final product."
The nightmare of extracting coal from the mine and shipping it to an extraction plant has got to be a more expensive operation than refining oil from heavy crude, sands, and shale. It probably will be done at the beginning of the end of the end game.
Fucking CRIMINALS.
CAN YOU READ THE SENTIMENT FUCK HEAD FED.???
are you saying the publishing of this and the program (in the setting of record low yeilds) is about getting money to the primary dealers to boost up the market. that the real (stated) nature of why the program is being run isn't correct.