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Curry POMO

Fed POMO for next 30 days $105 billion. Fed expects $30 billion in MBS paydowns. Wrong! Will be much less. Will need to cut Jan POMO. Lee_Adler

http://www.ny.frb.or…n_schedule.html

What this means- The Fed scheduled $75 billion as the pro-rated portion needed to reach the $600 billion QE2 target that Burntwankie pulled out of his ass. The other $30 billion is the amount of MBS paydowns the Fed’s black box says will occur this month. That’s wrong. There will probably be hardly any because of the sharp rise in mortgage rates. If so, the Fed will need to cut January POMO sharply at the same time the Treasury is boosting supply by $40 billion a month (assuming the tax deal passes.)

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