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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: Lee Lichterman III who wrote (5965)1/23/2004 1:19:02 PM
From: russwinter  Read Replies (1) of 110194
 
Very good point on the POMOs. I agree on the leverage factor. Good piece on this topic, for those who want to know:
financialsense.com

It seems that they get used in clusters, especially last spring when they were trying to reflate. Then for some odd reason they ran another set of clusters late last year (when I first started doing my inflation alert stuff). I remember thinking to myself, "what the f--k are they doing this now for!!??". It was one more nail in the coffin for me on the inflation break out story, huge mistake for them to do it at that particular point. What do you have for POMOs for January, any? In January they were as erratic on the temporary repos as I've ever seen.
bullandbearwise.com
I think they are confused (let me explain it to them!)about some of the runaway input prices. Probably hitting the gas pedal and brakes like some drunken slob out for a night of binge drinking.

Notice the big bond price reversal today off this light REPO number, and with the Yen and currencies quiet today? A little of the "natural market" at work I'd say.

Please check in once in awhile with your observations on this, as it's a key indicator IMO.
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