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For The 1st Time In History, Fed Will Buy AND Sell Treasurys At The Same Time On Friday
Zerohedge ^ | 11-30-11 | Tyler Durden

Posted on 11/30/2011 1:09:25 PM PST by tcrlaf

Following today's unprecedented POMO failure due to "system difficulties" (one would hope the Fed's POMO machine does not start and stop every time someone pulls the plug from the socket), Brian Sack's team (not to be confused with the PWG team of Eric Mindich) had to reschedule the literally failed auction.

As it turns out, the first opportunity to sell $8-$8.75 billion in 2013 bonds is on December 2. And unlike the December 21 "reverse" POMO which is due to take place at 1:15pm, the rescheduled bond sale will instead occur at its usual time of 10:15-11:00am.

Ironically, this is also the time when the Fed will be buying $2.25-$2.75 billion in 2036-2041 bonds. In other words, for the first time ever on Friday the Fed will be literally selling and buying bonds (although selling 4 times more than buying) at the same time.

If this is not the pinnacle of deranged monetary policy which does not even attempt to offset monetization by a few hours, then nothing ever can be.


TOPICS: Business/Economy; Government; News/Current Events; Politics/Elections
KEYWORDS: bailout; bonds; crash; economy; federalreserve; treasuries; treasurys
As one poster states, after today's unprecedented bailout of Europe by the American Taxpayer, the Fed isn't just out of bullets, they have thrown the gun away.

Everything is lining up, just like like it was in Mid September 2008. Except there is nothing left to bail anyone out with, other than a smoking printing press.

1 posted on 11/30/2011 1:09:29 PM PST by tcrlaf
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To: tcrlaf

Just as long as the Goldman Sack is not harmed..........


2 posted on 11/30/2011 1:13:37 PM PST by Paladin2
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To: tcrlaf
Wow, and the Stock Market Rockets Skyward.

Up is Down...

Black is White...

Night is Day...

I believe we are seeing the beginnings of the endgame.

3 posted on 11/30/2011 1:19:42 PM PST by Mad Dawgg (If you're going to deny my 1st Amendment rights then I must proceed to the 2nd one...)
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To: Mad Dawgg

That’s because there is no “market” anymore, only manipulation.

The system is clutching to its power and so-called wealth but it is corrupted beyond redemption. If it had any confidence in itself it would let true market forces work.

But we’re far beyond that option.


4 posted on 11/30/2011 1:55:03 PM PST by Paraclete
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To: Mad Dawgg

as the dollar devalues... the market, whose unit of measure is the dollar, will increase

under 0failure, we’ve gone from 12 inches in a foot... through 24 inches... and heading towards 36 inches in a foot.

watch the price of gold. there is a reason it’s called the gold standard. there is a finite supply and it cannot be diluted. that’s why it’s perfect for a monetary base. if you work in units of gold, the value of an item is constant and would only vary with supply and demand. if that value were also shown in dollars as the dollar is devalued, the price would shift unpredictably


5 posted on 11/30/2011 2:08:58 PM PST by sten (fighting tyranny never goes out of style)
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To: tcrlaf
Today was a revealing day as the markets soared on the news that the world central banks were cooperating to kick the debt can down the road. The financial doctors prescribe Tylenol for brain cancer and the markets rejoice.

Wall Street looks a lot like a casino to me right now.

6 posted on 11/30/2011 2:26:21 PM PST by Senator_Blutarski
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To: Senator_Blutarski

Not to quibble, but you made a minor typo. You wrote, “The financial doctors prescribe Tylenol for brain cancer and the markets rejoice.”

Correctly, it should read, “The financial doctors prescribe Flinstones Vitamins for brain cancer and the markets rejoice.”

Fixed it for you. Just trying to be helpful.


7 posted on 11/30/2011 2:45:18 PM PST by AnAmericanAbroad (It's all bread and circuses for the future prey of the Morlocks.)
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To: tcrlaf
there is nothing left to bail anyone out with, other than a smoking printing press.

Anyone know any good printing-press stocks?

8 posted on 11/30/2011 3:21:07 PM PST by BfloGuy (The final outcome of the credit expansion is general impoverishment.)
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