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"Our Leaders Dilute Our Dollars To Pay For The Sins Of Everyone"; Plus The Daily Santelli-Liesman Beatdown

Tyler Durden's picture


Two take homes from the attached clip:

1. It is somehow not totally shocking that Robert McTeer, former president of the Dallas Fed, has no idea what an asset bubble is and how everyone lining up to short the dollar is conducive to just that occurring, and subsequently exploding.

2. Santelli with the brilliant: "Our leaders dilute our dollars to pay for the sins of everyone." Simple, elegant... Then proceeds to eviscerate a clueless (as usual) Steve Liesman. One almost wonders if this is not staged in preparation for a payperview version of CNBC Premium - "The first in Octobox to Octagon transition, worldwide."


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Tue, 11/03/2009 - 13:27 | Link to Comment Comrade de Chaos
Comrade de Chaos's picture

all you need to know on the state of economy:


his analysis is .. brilliant and right to the point. (the point of no return - all hail the trade war.)

Tue, 11/03/2009 - 13:50 | Link to Comment Anonymous
Tue, 11/03/2009 - 15:08 | Link to Comment Anonymous
Tue, 11/03/2009 - 19:52 | Link to Comment Rainman
Rainman's picture

Thanx Comrade.  Denninger has gone on and on about the folly of following the Japan model, which is basically designed to transfer bad debt liability vs. honest recognition and purging. His anger is fueled by the desperation of it all......just like me x 5 .

Tue, 11/03/2009 - 13:33 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Santelli represents the anger most people feel regarding the daily outrages we're subject to. Regardless of whether you're making money in this market or not, most people understand that the powers-that-be are playing with nuclear weapons and this isn't going to end well.

Tue, 11/03/2009 - 14:06 | Link to Comment ghostfaceinvestah
ghostfaceinvestah's picture

Exactly.  Santelli is right, of course.

Know this, and tell it to your friends and neighbors: Every time you fill up at the pump, you are helping to pay for the bailout and bonuses of Goldman, JPM, WFC, etc.

Most Americans do not have the education to make that connection.

Tue, 11/03/2009 - 15:15 | Link to Comment MinnesotaNice
MinnesotaNice's picture

I think it is much more than education... you really need to have the life experience of traveling to other countries...most Americans will never be able to understand the concept of USD devaluation unless they travel outside of our borders... and see how many USD's it takes to buy the familiar items in another country.

Tue, 11/03/2009 - 18:17 | Link to Comment I am a Man I am...
I am a Man I am Forty's picture

MN, you don't have to go outside of our borders to see USD devaluation.  It devalues right here in the US.  Liesman's reference to French wine was very Ben Bernanke and shows very little understanding of economics.

Tue, 11/03/2009 - 20:40 | Link to Comment mikeyv1970
mikeyv1970's picture

Ain't that the truth.  I have visited 9 countries in past 18 months and the change is amazing....

Tue, 11/03/2009 - 14:22 | Link to Comment Enkidu
Enkidu's picture


Tue, 11/03/2009 - 14:25 | Link to Comment Anonymous
Tue, 11/03/2009 - 13:33 | Link to Comment Anonymous
Tue, 11/03/2009 - 13:33 | Link to Comment Anonymous
Tue, 11/03/2009 - 14:21 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Steve Liesman is obviously a proxy for the Fed and his "why should we care" comment should be taken literally. An entity, person or God only says something like this when it considers itself omnipotent and beyond reproach.

This is precisely why it's time to audit the Fed.

Tue, 11/03/2009 - 13:33 | Link to Comment AN0NYM0US
AN0NYM0US's picture

Everyone's favorite bear Robert Prechter will be on Bloomberg this afternoon. I think its Bloomberg Radio with Pimm Fox at 3 O'clock NYT

Tue, 11/03/2009 - 14:13 | Link to Comment lsbumblebee
lsbumblebee's picture

I wonder if he's going to tell us again that the dollar bottomed at 78.

Tue, 11/03/2009 - 13:35 | Link to Comment Hephasteus
Hephasteus's picture

It's not a bubble. It's a massive long term dead cat bounce. That's all the 30's were was one dead cat bounce after another from the original crash.

Tue, 11/03/2009 - 14:30 | Link to Comment Divided States ...
Divided States of America's picture

Youre right but unlike the 30s, the environment now is fastforward...meaning that bubbles brew up in a much faster timeline...and blowsup also in a much faster timeline....I doubt this whole episode will take more than 2-3 years to complete with the SP500 around 250-300 when all is said and done.

Tue, 11/03/2009 - 13:37 | Link to Comment AN0NYM0US
AN0NYM0US's picture

for those who missed it  Roubini on the coming implosion and how  the PTB appear to be completely  unaware of the asset bubble

Tue, 11/03/2009 - 13:36 | Link to Comment bugs_
bugs_'s picture

CNBC beatdown - santelli vs liesman - two man enter

one man leave.

Next week kudlow vs deutsch - two man enter one

man leave - winner keeps his show.


Tue, 11/03/2009 - 21:43 | Link to Comment Lux Fiat
Lux Fiat's picture

How about they both become mortally wounded? 

Pimm Fox is an entirely different story.

Tue, 11/03/2009 - 13:42 | Link to Comment Cheeky Bastard
Cheeky Bastard's picture


And Tyler, man, kudos to you for having the nerves and the stomach for watching this ....

Tue, 11/03/2009 - 13:44 | Link to Comment digalert
digalert's picture

Darn Santelli, he keeps wandering off the reservation.

Tue, 11/03/2009 - 13:44 | Link to Comment Careless Whisper
Careless Whisper's picture

Santelli should be Treasury Secretary.

Tue, 11/03/2009 - 18:29 | Link to Comment Jim B
Jim B's picture


Tue, 11/03/2009 - 13:49 | Link to Comment pbmatthews
pbmatthews's picture

Bob McTeer spoke at the University of Texas a couple of years ago and I got into it with him that the government's CPI figures were a joke--that they did not capture the true costs faced by the average citizen living in America.

Naturally, he defended the status quo.

What else would you expect from an Aggie????


Tue, 11/03/2009 - 13:52 | Link to Comment Anonymous
Tue, 11/03/2009 - 14:52 | Link to Comment sgt_doom
sgt_doom's picture

One can only agree with Prof. Black (why is it that the U. of Missouri and the U. of Maryland appear to have all the top thinkers and economists in the nation?) --- although I suspect the entire financial system has already been wiped out, as there is no longer a real economy in America, simply the Great Financialization (composed of the "wizards of financial engineering").

R.T. Naylor, considered somewhat of a radical economics prof. at McGill U. in Canada, has taken exception to some of Prof. Black's past statements, proclaiming the entire system rotten to begin with.  His book, BTW, Hot Money and the Politics of Debt, is truly a must-read.

It appears that Prof. Black is beginning to believe more and more as Prof. Naylor believes.

Mon, 12/28/2009 - 23:09 | Link to Comment ZeroPower
ZeroPower's picture

Had Naylow as a teacher last year. Radical is to say the least.

Definitely eye-opening guy, doesnt teach an econ class like any other professor would.

Mon, 12/28/2009 - 23:10 | Link to Comment ZeroPower
ZeroPower's picture


Tue, 11/03/2009 - 13:53 | Link to Comment Anonymous
Tue, 11/03/2009 - 13:54 | Link to Comment Anonymous
Tue, 11/03/2009 - 14:32 | Link to Comment DiverCity
DiverCity's picture

Yeah, well, the Tea Baggers sense that something is awry;  it's just that some of them can't quite connect the dots.  They're our only hope, however, in the sense that if they can somehow connect the dots and wrest themselves from the shackles of the talk-show charlatans and understand the real causes of the state where in, then we're cookin' with gas baby! 

Tue, 11/03/2009 - 15:18 | Link to Comment Anonymous
Tue, 11/03/2009 - 15:25 | Link to Comment Screwball
Screwball's picture

Great point IMHO.  But, I don't think that will happen.  I live in a small farming community, we have a local chapter of teabaggers, 50 of which went to DC in September.  I have tried to join (kind of) in with them, and help them understand (the best I can understand and explain it) where the causes lie.

Forget that.  All they want to hear is what the talk-show charlatans tell them.  They buy their books, cite their every word, and worship them like the saviour to everything.  And they despise any and everything dem/liberal. As soon as I mentioned a few things about the FED, and some of the congress critters who were trying to expose the pigmen for what they are, the teabaggers got pissed because I even mentioned a democrat.  They threw me off their website and told me I was just another evil liberal.  Couldn't be farther from the truth, but that's how they read it.

While I agree with many of their arguments, they really have little tolerance for anything that isn't exactly to their view.  Zero tolerance you might say, and pretty adamant about it.  While they all might not be that way, the ones that live in Backwoods, USA like I do, certainly are.  Their dream ticket for 2012 is Glenn Beck/Sarah Palin.  Hummm....  That alone was enough to make me want to run the other way.

It's America after all, and they can believe what they want, no problem here, but I wouldn't count on them either.  They are still too concerned with ACORN, birth certificates, and how Beck/Limbaugh are the ONLY people telling the truth.  Color me skeptical.

Tue, 11/03/2009 - 20:54 | Link to Comment Booger Smoot
Booger Smoot's picture

Blah blah blah.  Screwball has all the answers for what the causes all of these problems but the darn "baggers" just won't listen.  Whatever. Get off your high horse you linux loving fruitbat and recognize that you are just as capable for falling for propaganda *cough*teabaggers*cough* as those you deign to denigrate.  I'd take Beck/Palin anyday because at least you'd know what you're going to get and they are easily hampered unlike Mr. Chocolate Smoothy McHopey.  Durr Hope and Change Durrrrrrrr.............


Zerohedge.  A place where everyone knows everything better than everyone else.

Wed, 11/04/2009 - 05:04 | Link to Comment SRV - ES339
SRV - ES339's picture

Beck / Palin... sir, you really do need help... and I won't waste my time with the racial slur.

Wed, 11/04/2009 - 09:31 | Link to Comment Booger Smoot
Booger Smoot's picture

Dumbass.  Beck/Palin because they are EAILY hampered in their agenda not because I'd like 'em. Duh.


How is Chocolate Smoothy racist?  Isn't New Orleans a chocolate city?  Oh noes, I said something bad.  Bunch of whiny ass pussies around here.  Whaaaaa.

Tue, 11/03/2009 - 18:01 | Link to Comment cougar_w
cougar_w's picture

I don't beleive the teabaggers "sense" anything.

Or at least nothing they haven't "sensed" since the Nixon adminstration.

The radio talk-bags are just using the ages-old teabagger angst against them. They'll be as shocked as everyone else when some in-bred nimrod from Alabama drives his Ford pickup into some VIP motorcade, screaming "He ain't got no birth certificate!"

A nation of fools led by greedy sociopaths. It will just have to burn, I guess.

Tue, 11/03/2009 - 23:13 | Link to Comment Anonymous
Tue, 11/03/2009 - 17:41 | Link to Comment Anonymous
Wed, 11/04/2009 - 04:47 | Link to Comment Apocalypse Now
Apocalypse Now's picture

Listen up and I will share the truth with you, although many anonymous here are just shills driving an agenda or are unfortunately ignorant of the impact of social programming.

I stand with the tea party participants, as do intellectuals capable of independent thought apart from the TV and hollywood complex, which is completely controlled by the same people that want the corrupt status quo (banking complex) - one of the biggest rants on this blog is about the propaganda on CNBC to state just one example.  They never even addressed any of their concerns, just attacked the messenger (ad hominem).

The rally in DC was somewhere between .5m and 1m people, but it barely made the news, the media preferred to ignore them in some cases, pick out a few unusual misfits that might not be able to speak eloquently in a 1 minute sound bite, and make fun of the small group of misfits that were trying to express their frustration.  If a tree falls in a forest and nobody reported on it, does it make the news? 

For your information the cult of personality that was cultivated on Obama was complete social programming (zebrynski book) - those fawning are the most easily influenced by the opinions of others he was built up to pass the agendas of his sponsors).  If the protestors had been protrayed as brave individuals willing to stand up for their rights and the rights of their fellow citizens against corruption in the media, they would have overwhelming support.

The protestors are doing physically what we are doing here on ZH.  Perhaps they needed a rallying cry like the one MsCreant came up with to have a consistent message and unify the group - Open the Books, Jail the Crooks! Or Pax Romana not Tax Romana

Do you know who runs the media and hollywood complex?  Do you think you know, or do you really know - I am challenging your intelligence here and if you can't answer this you are not as smart as you think.  You pay taxes and interest to the same people (the owners of THE BANK also own the media) and they want the status quo and will villify those who challenge it. 

Most don't understand this but our founding fathers did - they hated the Bank Of England (privately owned by Rothschild) because it encouraged wars and government spending and then required the government of England to raise hefty taxes on citizens to pay for the borrowing.  The bankers know this and are even training police departments through the DHS that those that believe in the constitution or ideals of the founding fathers are potential terrorists (because it stands in their way of control). 

The taxes at the time of our founding were equivalent to 3 weeks of wages and were based on taxation without representation - that is identical to controlling two parties with the illusion of choice and then bailing out banks with citizen tax dollars despite 100 to 1 opinions against it.   This year's cost of government day (COGD look it up) landed on August 12th this year!  That means you started making money for yourself on August 13th after paying off local, state, property, sales, & federaltaxes and fees. If you think these people are ignorant for peacefully protesting against stealing, I have news for you - you are ignorant.

Much of that money you worked so hard for was printed out of thin air by the banks and now you have to give it back to the banks in 1. taxes 2. interest 3. bank commodity speculation with higher prices paid by you at the pump and grocery store (not in COGD) 4. GS & Wall Street theft through HFT, naked shorting, non-collateral longs as they promote volatility to rake in trading profits 5. whatever you keep in currency savings they take through inflation as they access new dollars first (not in COGD).  This is a system of money laundering including the stock market, a system of pooling funds and then using it for whatever purpose they wish. 

The tea party protestors realize they are being screwed, but don't think that the media (owned by the banks) will challenge the status quo that benefits them by reporting the issues.  There are no journalists, just Baghdad Bobs reading off of teleprompters and attacking messengers in a mean spirited way.  As an example, which journalist has even asked the question who owns the fed? what relationships do central banks around the world have, and who owns them?  I hope I have made my point that the media is completely controlled, and that what you see on tv is often what they want you to see - propaganda that in many cases we pay for in our cable bills.

Thu, 11/05/2009 - 00:45 | Link to Comment Dantzler
Dantzler's picture

Thanks, man.

I attended some tea party events in Seattle. I despise both parties and don't watch the "pundits". COGD sums it up for me--should be in January, damnit!

Tue, 11/03/2009 - 13:55 | Link to Comment Anonymous
Tue, 11/03/2009 - 13:58 | Link to Comment beavis
beavis's picture

Sins of everyone?  Some of us are more sinless than others.

Tue, 11/03/2009 - 15:54 | Link to Comment John Self
John Self's picture

Did you ever buy something made in China?  Put less than 20% down on a mortgage?  Invest in a financial firm even though you didn't fully grasp where all the revenue was coming from?

Come on. 

Tue, 11/03/2009 - 14:08 | Link to Comment Gordon_Gekko
Gordon_Gekko's picture

But, but...Robert Prechter told us that Gold is going to $630/

Tue, 11/03/2009 - 14:09 | Link to Comment Anonymous
Tue, 11/03/2009 - 14:12 | Link to Comment Overpowered By Funk
Overpowered By Funk's picture

If Robert McTeer was a Dallas Fed Govener, I suppose it only makes sense that Steve Liesman would be the "senior economics editor" for a major US business network.

Tue, 11/03/2009 - 14:58 | Link to Comment sgt_doom
sgt_doom's picture

And given a recent testimony by the Inspector General of the Federal Reserve System, we know that the IG, when sitting on her hands, stil can't find her butt!

Therefore, one shouldn't expect Bernanke (until about a year ago) to know what a credit default swap is, nor a Fed Governor to know anything crucial concerning economcs.

Tue, 11/03/2009 - 14:19 | Link to Comment Anonymous
Tue, 11/03/2009 - 14:19 | Link to Comment jimcg
jimcg's picture

Has to be scripted.....probably by the same team that wrote for Looney Tunes.

Actually, with the exception of Rick, I can't listen to CNBC for longer than 5 min, and I'm very surprised that he hasn't been told to "join the team" or "pack your bags". Remember Dylan Ratigan?


Tue, 11/03/2009 - 14:22 | Link to Comment snorkeler
snorkeler's picture

Steve Liesman is the illegitimate child of Doctor Phil. I thought everyone knew that. His "tree" analogy is retarded.

I guess McTeer had a stroke recentl?


Tue, 11/03/2009 - 22:43 | Link to Comment TumblingDice
TumblingDice's picture

"The tree is falling on you Rick" is the most sophmoric counter argument you would ever hear anyone make, let alone the chief propagandist on CNBC. I don't know how anyone with a brain could have possibly taken Steve's side of the argument after this.

Tue, 11/03/2009 - 14:24 | Link to Comment Anonymous
Tue, 11/03/2009 - 14:33 | Link to Comment curbyourrisk
curbyourrisk's picture

Santelli.....if you are ever in NY.....dinner is on me.

Tue, 11/03/2009 - 14:33 | Link to Comment curbyourrisk
curbyourrisk's picture

Santelli.....if you are ever in NY.....dinner is on me.

Tue, 11/03/2009 - 14:34 | Link to Comment curbyourrisk
curbyourrisk's picture

Santelli.....if you are ever in NY.....dinner is on me.

Tue, 11/03/2009 - 14:41 | Link to Comment Anonymous
Tue, 11/03/2009 - 14:45 | Link to Comment snorkeler
snorkeler's picture

IMF sells 200 metric tons of gold to India

Tue, 11/03/2009 - 15:02 | Link to Comment Whizbang
Whizbang's picture

can we please get a petition together to get leisman fired from cnbs. I can feel my bloodpressure skyrocket whenever I watch that moron...

Tue, 11/03/2009 - 15:04 | Link to Comment Anonymous
Tue, 11/03/2009 - 15:06 | Link to Comment bugs_
bugs_'s picture

sh sh sh shafted by t t t timmay!

Tue, 11/03/2009 - 15:22 | Link to Comment Mark Beck
Mark Beck's picture

Is Robert McTeer the Federal Reserve poster boy? Hey, if the shoe fits. Wear it.

However, in Bob's defense, the questions asked of him, in opinion, are not FED centric. The inner workings of the FED in relation to this new asset ownership environment, I think would be more telling. For example, the global question about overvalued assets and carry trade, are interesting and pertinent, but perhaps they could have asked Bob if he would be advocating buying MBS to stop a housing price bubble correction, if he was FED chairman. You know, something a little closer to Bob's home subject. Unlocking the mysteries of the FED mind, so to speak.

They should have just asked Bob if the FED policy is for a strong dollar? and he should answer, the FED is not responsible for a strong dollar, it is not responsible for a weak dollar. Really the FED by invention, especially now in our fiat environment, is not sound money policy by its very existence. Inattention to the currency is baked into the cake. You can see it on Bob's face when he is asked the currency questions, what did you ask me?? He must think to himself, the FED is in the process of debasing the remaining worth in the dollar and you talk about dollar strength, dollar protection, are you people that out of touch?

Among the FEDs responsibilities are: full employment, stable prices, and long term interest rates. This is interesting, because they really do not have the tools to promote full employment, and stable prices are absurd with QE, and our debt makes interest rates almost impossible to control long term. Today, by mandate, the FED is unable to to effectively carry out these tasks. It is ineffective and ill-advised.

Its funny when Geithner, in backing up the FED, his real boss, talks about policies the FED cannot really control.

More importantly, FED authority and power should be most effective in overseeing banks and systemic risk. and we know how well they did at this. Remember GLB act established the Federal Reserve as a superregulator, overseeing all Financial Services Holding Companies (bank holding companies). The FED, after ignoring warning after warning of the potential danger of derivatives, and even advocating no market regulation, and promoting loose money policy, failed utterly at its job.


I would ask Ben B., based on FED performance, why he should keep his job?

Tue, 11/03/2009 - 15:54 | Link to Comment snorkeler
snorkeler's picture

Ben will tell you to ask Obama, who just re-appointed him. Obama will tell you that it was based on Ben's performance and you should ask Ben about it. Then Ben will tell you to ask Obama................................................................................................

Tue, 11/03/2009 - 17:28 | Link to Comment Mark Beck
Mark Beck's picture

The President appointed him, but the Senate must confirm. The Senate hearing is the opportunity to ask Ben some hard questions. Not that I think this will happen.

Tue, 11/03/2009 - 15:28 | Link to Comment TraderMark
TraderMark's picture

Nearly 600,000 Americans walked away from their mortgage in 2008 - better than expected

Expect a flood more in 2009 especially if they can get that $6500 tax credit for a new abode and then "flip that house" onto the taxpayer.  Boo Yah!

Tue, 11/03/2009 - 17:49 | Link to Comment cougar_w
cougar_w's picture

"mailing in the keys" will be the next big arbitrage in this inter-gallatic-sized Ponzi clusterfuck. It's not flipping houses any more, it's flipping mortgages.

We'll run out of deck chairs on this Titanic eventually, and they'll have to start tossing people off. Of course it's going down anyway, so maybe being tossed over the side is a blessing; it's just possible that the worst place to be when this mega-ton PoC goes under is standing proudly on the bow, teh Big Dog Win-nah.


Wed, 11/04/2009 - 01:39 | Link to Comment Anonymous
Tue, 11/03/2009 - 15:56 | Link to Comment Anonymous
Tue, 11/03/2009 - 17:51 | Link to Comment cougar_w
cougar_w's picture

AKA "the race to the bottom."

Everyone a winner. Boo-yah!

Tue, 11/03/2009 - 16:00 | Link to Comment Anonymous
Tue, 11/03/2009 - 18:11 | Link to Comment Anonymous
Tue, 11/03/2009 - 18:21 | Link to Comment Jim B
Jim B's picture

Robert McTeer is playing dumb, else he'd have to admit the FED/TREAS is being irresponsible!

Tue, 11/03/2009 - 19:06 | Link to Comment Anonymous
Tue, 11/03/2009 - 20:17 | Link to Comment Bubby BankenStein
Bubby BankenStein's picture

It is staged.

Monetary policy is in ash-ambles.

Manipulation of money market rates where depositors get Zero, shit soup Fed constituents get money for free and are allowed to receive oversize spreads.

Those people really are incompetent in PR.  They think there will not be much blowback resulting from Screwing Depositors, and enrichment of the Banks.

Great work Guys!  Over a timeline, you lose.


Wed, 11/04/2009 - 00:04 | Link to Comment Anonymous
Wed, 11/04/2009 - 00:50 | Link to Comment Anonymous
Wed, 11/04/2009 - 03:11 | Link to Comment Brown Paper Bag...
Brown Paper Bag Person's picture

"Why should we care?"

These people are so out of touch.  He might as well have said "Let them eat cake!"

(I say "Off with their heads!")

Wed, 11/04/2009 - 08:28 | Link to Comment Anonymous
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