Support the Wall Street Examiner! Choose your level of support to receive a free proprietary report as my thanks. Click the button below to see your options. Become a Patron!
It was a busy day. The Treasury sold 3 issues, at which the indirect bid was generally strong, except for the small TIPS issue, which indirect bidders shied away from. The Primary Dealer bid on all three issues was absolutely enormous leading to huge bid/cover ratios on the shorter term stuff. That leads to the question, “What do they know?” to which I might interject, “What the hell are they thinking?”
The Fed held another Toxic Assets Live Forever (TALF) party, and this one was an even bigger dud than last month’s. The total lent was just $1.7 billion. At this rate the Fed will reach its goal of $200 billion for this much touted “lynchpin of Fed policy”, uh…. never.
Even today’s TAF auctions dropped by 10%. The banks seem to be following the dictum, “Neither borrower nor lender be.” Of course that was a comedic Shakespearean line. In this case we are witnessing the tragicomedy of the Fed trying to keep the tide from going out. Needless to say, Bernanke and company are beginning to look like inept, powerless, nincompoops.
Cut through the Wall Street BS. Get the facts, with no punches pulled from Lee Adler in his forthright style. Plus insightful posts from straight shooters like Constantine Gurdgiev, Chris Whalen, Anthony Sanders, Charles Hugh Smith, Doug Noland, Sven Henrich and more.
Get the facts! Join now!
Check your inbox for the confirmation email which is sent instantly. If not there, check your SPAM folder and be sure to whitelist the "From: Lee Adler" email address. Your information will *never* be shared or sold to a 3rd party.
1 comment for “Nincompoops is Us – Professional Edition Fed Report”