POMO Just Starting

Today's POMO is the last of the TIPS auction, and just got under way. It's not a very large auction, and will come in somewhere between $1.5 billion and $2.5 billion. Maturities being bought are between 2028-2040, so the Fed is going out on the long end of the curve on this auction. Despite today being a small auction, after the $2 billion or so is leveraged at lord knows how many times, that's another $40 billion or so to buy equities that are worthless. Ones like Netflix NFLX, OpenTable OPEN and others that have absurd valuations on products that have no barriers to entry. The Bernank, The Sack, and The Dudley win again, and The little guy lose again. But what else is new?