The F_E_D Cancels First POMO EVER

I was sent this news from a member as I have had my nose in the chart all day, but the F_E_D did cancel the first POMO ever in the history of POMOs, which was scheduled for a $8 billion dollar sale of 2013 bonds. The reason given, technical glitch!

What is probably more accurate, considering the timing of China's move and the Global banking cartel (none of which seems coincidental to me)  and this historical precedent of the cancellation of the operation today is this, the operation (POMO) is a liquidity soaking operation, meaning it reduces liquidity which is EXACTLY the opposite of their 8 a.m. move to increase liquidity. So now they are cancelling an $8 billion dollar POMO that would reduce liquidity at the very same time as they introduce a globally coordinated liquidity boosting operation.

So the obvious question that the market should be starting to come to terms with after the knee jerk reaction is, "Just how bad is the liquidity situation?"

I think we got the answer to that question a week or so ago when it was uncovered that Italian banks are borrowing money not from the normal channels, but from a highly unlikely source, the London Stock Exchange!

As the F_E_D said in their FAQS about the operation liquidity that they unleashed today, the weekly NY_F_E_D report will show who borrowed exactly what. This was the problem we saw in 2008 when banks didn't want to borrow from the f_E_D's discount window, it gave traders a heads up on who was weak and they went after those banks, that's why the F_E_D created an opaque lending facility so there would be no stigma for the banks, this time around it's a bit different, which makes me wonder exactly what will happen when the first report is issued and the shorts pile up on any bank that tapped the borrowing facility? They definitely have to weigh the pros and cons of borrowing the money and those that decide to take the money, may very well see their share prices plummet.