Fed's POMO Power Loses Punch- Primary Dealers Will Puke

``Over the past 10 days the CME reduced margin requirements on first, stock index futures, then Treasury futures. I don't think that this was simply the exchange acting on its own any more than it was when it hiked margins on silver, crude, and corn, and I do think there's a message in these actions. The Fed wants commodity prices lower and stock and bond prices higher, and it will pull the strings to try anything to make that happen. In the end though, without QE the manipulation cannot succeed. Therefore, I think we will see a return of a modified QE in the not too distant future. Look for it to include MBS again. The Primary Dealers have been accumulating that garbage hand over fist over the past 2 months. ''