Friday, March 4, 2011

What happens AFTER the Fed prints money?

What happens AFTER the FED prints money????

It has to go somewhere???

All that money gets dumped into the general market on a schedule of about 100 billion dollars a month in fake money

Now the Fed publishes the schedule….you can see the daily amounts….

….on a given day they’ll do 5 billion, or 10 billion, or once in a while there’s either NONE or it’s very small…maybe 1 billion....

Today is one of those days….POMO today was only one billion…

What’s interesting is how the market behaves when there’s a difference. Yesterday, they did more than 7 times that and the market was flying…

Not only do we see weakness, but the schedule ends NEXT WEDNESDAY

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