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Nov 13, 2010

FW: QE2 Frontrunning Begins As Fed Gives Primary Dealers 7.229 Billion Reasons To Close Market Green

  • Econophile
    11/12/2010 - 18:46
    The G-20 meeting in Seoul was not a good one for the Obama Administration and President Obama in particular. Mr. Obama was unable to conclude a free trade agreement with South Korea, and China told him to stop meddling in their internal affairs and put his own house in order first. China is right.
  • derailedcapitalism
    11/12/2010 - 14:13
    There is just under two hours left in today's trading session and the AUD.JPY to ES correlation has decoupled. Since we all know it is impossible to finish red on POMO days, it is time to put on the convergence arb and rake in the free money as the late afternoon parabolic ramp up is bound to happen.

QE2 Frontrunning Begins As Fed Gives Primary Dealers 7.229 Billion Reasons To Close Market Green

Tyler Durden's picture




Brian Sack proves that all who thought a little technical glitch can stop the Fed from destroying America's middle class and the dollar, are idiots. Today's POMO closes as $7.2 billion of bonds due 2014-2016 are monetized, at a perfectly median 4.0x submitted to accepted ratio. Elsewhere, CNBC is now officially pimping QE2 as its last resort attempt to get greater fools in the stock market. And just like Michele Caruso-Cabrera, who obviously has absolutely no idea how POMO is run, we are eagerly awaiting the price and the yield on the buybacks. We anticipate to wait about 50 years for said data: about the time the Fed's records are declassified.

Full results:

 

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by CitizenPete
on Fri, 11/12/2010 - 11:37
#722250

by CheapKUNGFU
on Fri, 11/12/2010 - 11:38
#722253

ok, quick sideline to Mish...

Investor for 17 years, runs his on fund for 12 years, blogs for 3 years, disappears without warning... my suspicion... HACKED

All your bloggers are belong to us, make your time...

CKF

by sbenard
on Fri, 11/12/2010 - 11:55
#722352

That seems to be the most likely explanation! Amazing!

But do you think they hacked him, then deleted his blog? Is that what you think is likely to have occurred? If so, then he will probably be back within a few days?

He must be pissed as hell!

...or is all this even more sinister? I don't know!

by Divided States ...
on Fri, 11/12/2010 - 12:13
#722419

It would be amazing if the markets close down at least 1% even in the face of a 7bn POMO. Of course, like I said last week, the insiders are taking this 1 month window to liquidate every single share they own. It may be the start of a new trend.

by pile of poop
on Fri, 11/12/2010 - 11:58
#722368

Mish's blog is working fine for me...

by redpill
on Fri, 11/12/2010 - 12:09
#722413

Back up...

by 99er
on Fri, 11/12/2010 - 11:39
#722254

by Nedly66
on Fri, 11/12/2010 - 12:23
#722463

ditto... looks like a turning point today.

by Rasna
on Fri, 11/12/2010 - 12:39
#722538

OK,

This is interesting... They are hitting the bid big time and we are way down on the days lows... Either they are clearing out the weak longs and preparing to POMO up for the rrest of the session or there is something else (Europe?, China?) going on.

Going long at 93 quarter.

by Ombibulous
on Fri, 11/12/2010 - 11:39
#722257

Off topic, but anybody seen Mish? His blog is gone.

 

http://globaleconomicanalysis.blogspot.com/

by CheapKUNGFU
on Fri, 11/12/2010 - 11:40
#722265

see my post above... just a suspicion

by Spalding_Smailes
on Fri, 11/12/2010 - 11:41
#722269

I just called him. Hes in vegas ...

by slavador
on Fri, 11/12/2010 - 12:03
#722384

Did he lose his blog at the poker table?

Wait - he's back!

 

by HarryWanger
on Fri, 11/12/2010 - 11:40
#722260

Elsewhere, CNBC is now officially pimping QE2 as its last resort attempt to get greater fools in the stock market.

Too funny! The Fast Money crew was baffled why the market wasn't down much more yesterday yet not one mentioned that the Fed is pumping. Are they really that stupid? They thought the market not crashing was a sign of strength in the markets but never mentioned the whole underlying reason - POMO. Yes, Virginia, they are pretty stupid.

by Dr. No
on Fri, 11/12/2010 - 11:48
#722274

I looked but couldnt re-find your post on AAPL TBTF.  I think AAPL is rolling.....very slow, but down since its peak.  Need a decisive move down to panic everyone but it continues to be a down side watcher.

 

EDIT: Flash crash??? Stockcharts as well as my broker account shows a flash to $212!!!!

by HarryWanger
on Fri, 11/12/2010 - 11:50
#722325

It IS TBTF. It's only off about 3% from its recent all time high. It should be off way, way more IMO. But it can't. It's TBTF - if AAPL goes down, the entire market goes with it. Won't happen. Fed will support it until every human being on the planet has an iPod, iPhone, iPad and some version of a MacBook.

by Spalding_Smailes
on Fri, 11/12/2010 - 11:54
#722346

And the apple tv for glee ... Lol.

by HarryWanger
on Fri, 11/12/2010 - 12:02
#722388

+100

by LowProfile
on Fri, 11/12/2010 - 11:56
#722356

TBTF actually means TBTFITCSI...

Too Big To Fail If They Can Stop It...  And they can't.

CBs are not bigger than the market, despite all their posturing to the contrary.

by I Am The Unknow...
on Fri, 11/12/2010 - 12:18
#722443

...nice BrainSack!

by LowProfile
on Fri, 11/12/2010 - 12:46
#722567

...I gotta be me, y'know.  Or not.

by prophet
on Fri, 11/12/2010 - 11:51
#722327

Its beginning to look a lot like Christmas.

by NOTW777
on Fri, 11/12/2010 - 11:41
#722270

amazing that cnbc reports this as "news" with no comment; its normal.

today ben added more gas to the fire burning down the usa

by unununium
on Fri, 11/12/2010 - 11:43
#722271

Um... nobody look now, but the yield on the 10y is up right through POMO.

Houston, we have a .... Houston? Are you there?

by Dr. Engali
on Fri, 11/12/2010 - 11:42
#722272

And now we begin creeping upwards towards a green close. Take it away Robby  robot.

by max2205
on Fri, 11/12/2010 - 11:42
#722275

PDs might wait for lower prices. They are not fools

by unununium
on Fri, 11/12/2010 - 15:39
#723226

It's 4 hours later.  Are the geniuses still waiting?

by plocequ1
on Fri, 11/12/2010 - 11:43
#722276

Its about fucking time. Ive been waiting for the OTB Chart all morning.  Ill put $200 on Horse 912828KRO and $300 on 912828NZ9.

by lsbumblebee
on Fri, 11/12/2010 - 11:43
#722278

Pretty neat how gold is almost back down to pre-QE2 level.

Way to go Bart! Congrats Gary!

by I Am The Unknow...
on Fri, 11/12/2010 - 11:43
#722282

My BrAinSack is filling up with hot money and I'm about to jiz all over every ass-et!!!!  Just look at my Avatar - look at it bitches!!!!

by I Am The Unknow...
on Fri, 11/12/2010 - 11:48
#722307

.....either that or I will come into my shorts...again....

by InsanePonziClown
on Fri, 11/12/2010 - 11:43
#722283

arghhhhhhhhhhhhhhhhhh, let's call this shit what it is

 

A NATIONALIZED 401K PLAN, for if we didn't have it all mfund mgrs would be dumping stocks, most balanced funds have recovered most of the losses, all them retiree's see these numbers and they will dump em

 

why are the numbers bigger and longer, cause it takes more cash to keep pcln, nflx, appl, bidu all up up up

 

monday is dday, if oil is down big, the pigs will puke everywhere, everything, and pomo will just be a vehicle for the street too sell at good prices into options week

 

i see black swans everywhere, lol...................

by detournement
on Fri, 11/12/2010 - 11:43
#722284

Do the advanced math captchas keep retail investors away?

by JLee2027
on Fri, 11/12/2010 - 11:47
#722300

POMO Fail?

by Mozzer
on Fri, 11/12/2010 - 11:48
#722306

Crap! What's happening to Gold? Anyone know?

by Spalding_Smailes
on Fri, 11/12/2010 - 11:49
#722318

Turd you said ....

by Kina
on Fri, 11/12/2010 - 11:51
#722335

Please refer all questions to JPM's help desk at the CFTC.

by JLee2027
on Fri, 11/12/2010 - 11:54
#722345

Now that's funny.

by sandorgb
on Fri, 11/12/2010 - 11:59
#722372

volatility

by spartan117
on Fri, 11/12/2010 - 12:02
#722387

G20 meeting.  They need to make this look good.

by sbenard
on Fri, 11/12/2010 - 11:49
#722309

Could someone please explain to a POMO neophyte the significance and interpretation of the RATIO data. What should I/we be looking for?

by mark mchugh
on Fri, 11/12/2010 - 12:08
#722403

Tyler's highlighting that there's 4 times as many people offering to flip their treasuries to the Fed than the Fed is buying today.

The bid to cover on the auctions is usually between 2 and 3.

Meaning that nobody actually wants treasuries because they think we're going to pay them back, they just bought them to flip them back to the Fed at a profit.

Which kind of shoots CNBSs notion that there's any real demand for Treasuries right in the ass.

by tmosley
on Fri, 11/12/2010 - 12:14
#722426

Thank you for the clear explanation.

by sbenard
on Fri, 11/12/2010 - 12:45
#722563

Yes, thanks!

Perhaps we are seeing the opening salvo of a "buy the rumor, sell the fact" run for the exits. It's going to get interesting!

by williambanzai7
on Fri, 11/12/2010 - 12:35
#722520

Where it goes...

POMO

by Bananamerican
on Fri, 11/12/2010 - 12:58
#722600

sweet relief

by Rogerwilco
on Fri, 11/12/2010 - 13:07
#722634

LOL banzai

As for today, it loks like POMO is an acronym for:

Pissed on my Oxfords

by firstdivision
on Fri, 11/12/2010 - 11:49
#722316

Did they pay everyone in DIS stock?  Look at that pig fucker fly today after yesterdays fiasco.

by hedgeless_horseman
on Fri, 11/12/2010 - 11:53
#722330

...we are eagerly awaiting the price and the yield on the buybacks.

We (the taxpayers<the Treasury<the Fed) over paid.  GUARANTEED.

by MGA_1
on Fri, 11/12/2010 - 11:51
#722333

My god, the market was down today, I simply couldn't figure it out...

by NumberNone
on Fri, 11/12/2010 - 11:52
#722339

My great-grandkids just texted me about this from the future in their home in New Beijing City (formerly New York City)...."Great Granddad...more debt for us?  Really?  WTF are you guys thinking?"

by No One
on Fri, 11/12/2010 - 11:53
#722342

Fed Buys $7.23 Billion in Treasurys as Second Round of Quantitative Easing Ends (click here)

WOOT!! QE2 is OVER..

Have to love the Breaking News Headline at CNBC. Yes, QE2 was only $7.23B..

Nevermind the remaining $592.77B - $792.77B....

 

 

by redpill
on Fri, 11/12/2010 - 11:58
#722370

They. Know. Nothing!!

/hypocrite

 

by max2205
on Fri, 11/12/2010 - 11:57
#722358

Any PD below 1200 spx will be called market intervention. Aka Japan

by Central Wanker
on Fri, 11/12/2010 - 11:57
#722360

... and the effect shows where? Not in stocks. Not in commodities. WTF?

by detournement
on Fri, 11/12/2010 - 11:57
#722361

POMO jumps the shark today. QE2 fails to restore wealth effect on day 1....

by Dollar Bill Hiccup
on Fri, 11/12/2010 - 11:59
#722369

1200 spoos is a nice round number. Let the buying begin ...

by redpill
on Fri, 11/12/2010 - 12:00
#722374

Tweet @Ben Ben, this is Timmy, why the fuck isn't the stockmarket skyrocketing right now?  You said this would work...

by max2205
on Fri, 11/12/2010 - 12:00
#722375

Market isn't up because that POMO went toward the bonus pool

1st things first!!!

by redpill
on Fri, 11/12/2010 - 12:01
#722379

priorities, bitchez!

by slaughterer
on Fri, 11/12/2010 - 12:04
#722392

+1 

by unununium
on Fri, 11/12/2010 - 12:16
#722425

With the 2010 banker bonuses at $144B, today's $7B money creation only covers 5%.

 

by Bananamerican
on Fri, 11/12/2010 - 13:02
#722617

still 42 "shopping" days till christmas...

models and bottles y'all

by doolittlegeorge
on Fri, 11/12/2010 - 12:07
#722404

Tweet to Ben is "why isn't the BOND market soaring???"  All stars "in alignment" right?  All "risk assets" getting clobbered, right?  "That includes treasuries, now BB."  You need to ask yourself "just who precisely are you bailing out, Ben" by monetizing the debt?  IT'S NOT THE TAXPAYER that's for sure.

by No One
on Fri, 11/12/2010 - 12:16
#722434

Taxpayer bailouts??? HAHAHAH

 

The elites plan to divide and conquer is alomost complete. It appears that the plan all along was to have the sheeple debate gays, god, and guns all the while TPTB were orchestraing the greatest coup never televised.

by Kaiser Sousa
on Fri, 11/12/2010 - 12:15
#722427

Guys fuck the markets....let's get with the program...

http://www.youtube.com/watch?v=0bJK9K05Hgo&feature=player_embedded

by mark mchugh
on Fri, 11/12/2010 - 12:16
#722431

I am sooo glad I didn't try to "get in on" this POMO thing.

Wall Street's bread and butter has been running over the shorts for a year and a half.

Looks like they've decided to start shearing any longs they can flush out now.

by detournement
on Fri, 11/12/2010 - 12:20
#722452

Hope you all can haz puts! 

http://www.google.com/finance?client=ob&q=NYSE:GLD -3% !!

 

by Vampyroteuthis ...
on Fri, 11/12/2010 - 12:23
#722456

I have a hard time believing that the POMO is going to float the markets for all that long. US markets have value on the order of tens of trillions of USD. POMO is only $600 billion over 8 months. It is Helicopter Ben pissing in the wind!

by Oso
on Fri, 11/12/2010 - 14:17
#722929

its $600 bl multiplied by 20x leverage, which PD's do.

by 99er
on Fri, 11/12/2010 - 12:23
#722464

by London Banker
on Fri, 11/12/2010 - 12:24
#722468

The reason the market is still falling today is that it is drained of liquidity and margin calls are forcing liquidations.   Although the POMO auction was today, the banks who tendered don't actually get the cash settled to them until Monday.  This is why the schedue states both auction date and settlement date.

Only when they get the cash can they juice the market.  No cash today.  No juice today.

by detournement
on Fri, 11/12/2010 - 12:41
#722549

Bankers can't haz credit? what? Cash only?

by the not so migh...
on Fri, 11/12/2010 - 13:11
#722644

Its like Peter Lugers now.

by detournement
on Fri, 11/12/2010 - 12:48
#722572

and yeah - so what you are saying is, 'buy and hold' till Monday? have fun with that.

by badnews...buyspus
on Fri, 11/12/2010 - 12:25
#722470

Since QE2 isn't buying (many at least) cmbs, we won't see the massive flood of cash into this mkt. QE1 worked by allowing banks to sell their shitty mtg bonds (to you and I, btw) and buy treasuries. If they marked those mtg bonds mark-to-market or even close, the price difference was just gravy that went into equities (nflx, aapl, open, and other popular names in an attempt to get the individual sucker investor in the market). Since equities ran up so high and so fast, no one fell for the "banana in the tailpipe". With no one left to hold the bag, banks won't be buying equities bc they won't be able to pump and dump - they'd be pumping themselves.  No reason for the banks to buy more treasuries - they just sold them. So where will the $$ go???  (they won't be lending it out for fear of getting caught in a future negative carry trade) Commodities and emerging markets seem to be the only place.

by BT310
on Fri, 11/12/2010 - 12:30
#722496

I was all set to buy my 4th flipdown screen for our 3rd car which we park in our 2nd home my newfound "wealth." Now i'm not feeling quite as confident now. Thanks a lot, B. SacK.

by Tsunami Effect
on Fri, 11/12/2010 - 12:58
#722603

Let's face reality.  This market is set up to crash.

And it is always driven by excess leverage, a change in the rules and a sudden change in where leverage flows.  Now from the markets to the FED. More signs...

VIX swing 22-18-21 in one week

Massive leverage in commodities crushed by margin in silver

Selling of liquid assets to meet margin in commodites... more margin tightening must be coming

Insider selling avalanche

Fed's magic bullet is spent.  They have to think of another "tool"

Europe PIIGS default may happen soon.  That story line is just like Lehman.

Bernanke is a LIFELONG academic 35 years in the ivory tower.  He is clueless about what ACTUAL consumer inflation (incl. food energy) is doing to buying power and confidence.

by Bananamerican
on Fri, 11/12/2010 - 13:09
#722640

but H. Wanger said we have "decades" for this all to play out!??

by the not so migh...
on Fri, 11/12/2010 - 13:07
#722632

POMO in the kisser right on your keister.

by johny2
on Fri, 11/12/2010 - 13:39
#722781

Brian Sacks is about to hit the buy button, it would be a bad PR if markets closed in red.

by slaughterer
on Fri, 11/12/2010 - 14:35
#722973

Today creates the "dip" which  filters Christmas bonuses into the Santa rally ... uh, I mean, the black hole.

by functionform
on Fri, 11/12/2010 - 14:46
#723009

POMO has utterly failed me!  *cries deep into night*

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Feed: zero hedge
Posted on: Friday, November 12, 2010 05:37 PM
Author: Tyler Durden
Subject: QE2 Frontrunning Begins As Fed Gives Primary Dealers 7.229 Billion Reasons To Close Market Green

 

Description: Image removed by sender.
Description: Image removed by sender.

Brian Sack proves that all who thought a little technical glitch can stop the Fed from destroying America's middle class and the dollar, are idiots. Today's POMO closes as $7.2 billion of bonds due 2014-2016 are monetized, at a perfectly median 4.0x submitted to accepted ratio. Elsewhere, CNBC is now officially pimping QE2 as its last resort attempt to get greater fools in the stock market. And just like Michele Caruso-Cabrera, who obviously has absolutely no idea how POMO is run, we are eagerly awaiting the price and the yield on the buybacks. We anticipate to wait about 50 years for said data: about the time the Fed's records are declassified.

Full results:

Description: Image removed by sender.

 

Description: Image removed by sender.


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