Just in case you didn’t get the memo, the Wall Street banks are raping you wide out in the open.
By flipping just issued bonds, they take a nice fat cut of the sale off the top with no risk to themselves, while the Fed prints billions upon billions of dollars.
Zero Hedge reports:
Today’s monetization of 5 Year Notes closed with $6.580 billion of debt bought by Brian Sack in this week’s last POMO (none tomorrow). And in what should not be a surprising development to anyone, the one issue which represented over half of the total operation was the just issued 5 Year QA1 which was placed literally a week ago (highlighted on the table). And so the grand scam continues: the Fed pretends not to be monetizing, the Primary Dealers pretend not to be making millions in preferential Bid terms, and taxpayers pretend to care.
But without a central bank we would all be doomed, right?