POMO results show reason for positive diverences

The submitted to accepted ratio came in at a low 2.6x (vs the median 4.1x) which means the Primary dealers have a lot of cash in hand and it generally ends up in the market around 11 a.m. at the end of operations.

Once again, the Fed picks up a bond that the PD's just purchased from the treasury last WEEK!!!!! This bond accounted for more then 58% of the entire POMO operation. So once again, the Primary dealers pockets are filled with cash for taking a bond from the treasury, not even holding it a week and selling it at a profit to the Fed with almost no downside risk whatsoever. Lets hope Ron Paul questions this absolutely questionable and highly immoral behavior. Unreal.