the POMO is widely accepted to have the effect of adding cash to banking institutions, who, in turn, are driven to use it for maximum profitability.
As the economy recovers bit by bit, they invest this liquidity increasingly into the equities market, effectively adding stabilization and alleviating fear and uncertainty which drove the rush to bonds to begin with.
It's a pretty safe bet that the F fund will slowly deflate as the economy comes back to life, at least until the next crisis.
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