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Late To the Party- WSE Pro

The Fed threw more fuel on the fire with a net add of $8.25 billion as the Treasury continued a second day of massive paydowns with $32 billion in net payoffs of Cash Management Bills. The Fed added $8.25 billion in weekend repos against no expirations. The pigmen let out another “Huzzah!” and shouted, “Let’s get run a gap, crap, and trap!” All that excess cash exploded into the market in the premarket, but by 11 AM it was exhausted, as most of it had been committed in Thursday’s buying orgy. Bonds had a huge spike on the CPI news, helped along by the cash spewed out by the Treasury, and the fact that for the time being there wasn’t enough TP to absorb it all. Again, the demand was exhausted within minutes. But fear not, the Treasury is coming with another paydown next week which Steve Northwood estimates will be around $11 billion on the 4 week bills. Finally, the Fed has come to its annual year end pumping party. It was late there’s still time to get caught up. 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, 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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