New York Fed Announces July 31 Outright Agency Coupon Purchase

After $3 B yesterday and $6.5 B today, another (probable) $1.5 – $3 B tomorrow in Fed funny money sent to banks that can be leveraged 100x or more should give the bears pause, especially into month end (tomorrow).

Our question is, what is the NYFR so worried about?  The contrarion in us would believe it’s to overcome a weak GDP report tomorrow and/or a very strong 7 year auction today.

If Bernanke manages to keep long term yields down after Geithner’s Lollapallooza in Treasuries while the FRNY keeps the stock market juiced into tomorrow, we will personally pin the Precision Award for Masterful Manipulation on Bernanke, Geithner and Dudley.