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Fed Stands Firm – WSE Pro

The Fed again stood its ground on Tuesday doing a minimal net add of $250 million. They added $7.5 billion in overnight repos, against $7.25 billion in expiring repos. This is unlike last year when the Fed pumped hard right up to the end of the year, but it’s similar to 2004 when they pulled back a little in late November before another push in mid to late December. Meanwhile, the Treasury is running out of cash. They announced a $29 billion Cash Management Bill auction to be held tomorrow, to raise enough cash to hold them until tax receipts come in on 12/15. This is in addition to $11 billion in new cash being raised in the two and five year note auctions. $11 billion in CMBs maturing on Friday will help somewhat, but next week’s auctions will ask for yet more cash. Click here to download complete report in pdf format (Professional Edition Subscribers).

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Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also publish LiquidityTrader.com, and was lead analyst for Sure Money Investor, of blessed memory. I developed David Stockman's Contra Corner for Mr. Stockman. I’ve had a wide variety of finance related jobs since 1972, including a stint on Wall Street in both sales, analytical, and trading capacities. Prior to starting the Wall Street Examiner I was a commercial real estate appraiser in Florida for 15 years. I was considered an expert in the analysis of failed properties that ended up in the hands of bank REO divisions, the FDIC, and the RTC. Remember those guys? I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. I'm not some Ivory Tower academic, Wall Street guy. My perspective comes from having my boots on the ground and in the trenches, as a real estate broker, mortgage broker, trader, account rep, and analyst. I've watched most of the games these Wall Street wiseguys play from right up close. I know the drill from my 55 years of paying attention. And I'm happy to share that experience with you, right here. 

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