Tag Archive for Soma

The Conomy Game- The Legend of Bennie The Beard, Henry the Hitman, and the Gangbankster Dealers

The shape of recent economic data trends reminds me of a story. It’s a story that shows just how the Fed’s manipulation drives both the stock market and the conomy. It’s also a story of the twisted personalities behind the facades of institutional power. This is not something that you will read in the mainstream…

Market Liquidity Flat With Hints of Weakening Ahead

The composite liquidity indicator fell sharply last week. There was some distortion to the indicator the previous week when the Fed’s SOMA fell due to transactions outside dealer channels, but that was reversed in the latest data. Bank inflows were flat. FCB buying dropped back sharply from a record rise. Bank non-Treasury trading accounts fell…

Fed Mirages Have Media Seeing Things

Today’s report on factory orders is just another example of why all media reported data must be taken with a grain of salt. Here’s how Marketwatch put it. “Orders for goods produced in U.S. factories rose 2.4% in July, the Commerce Department reported Wednesday. Economists surveyed by MarketWatch expected orders to rise a seasonally adjusted…

Bank, FCB No Show Puts Fed in Panic – Professional Edition

The Fed’s program of money printing was designed to add $600 billion in Treasuries to the System Open Market Account (SOMA) while replacing the MBS that were being paid off from its balance sheet. Last summer’s refinancing boom had triggered a wave of MBS prepayments. When mortgage rates rose in November and December, refinancing dried…

Fed SOMA and The Economy- The Puppetmaster

It’s mind boggling to me, just mind boggling, how nobody gets the simplicity of the pipeline from Ben Bernanke’s twisted brain to his henchmen the Primary Dealers, to the stock market and the economy. When the Fed pumps money into Primary Dealer trading accounts, they manipulate stock prices higher. When stock prices go up, the…