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"Our Leaders Dilute Our Dollars To Pay For The Sins Of Everyone"; Plus The Daily Santelli-Liesman Beatdown
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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all you need to know on the state of economy:
http://market-ticker.denninger.net/archives/1574-Why-Bernanke-And-Geithners-Gambit-Fails.html
his analysis is .. brilliant and right to the point. (the point of no return - all hail the trade war.)
not always a big fan of Denninger, but must give props when due: he nails it with this one.
he's become the anti-krug, a non-economist economist.
Brilliant. He really knocked it out of the ballpark. Really put into meaning the devastating effects of "Outsourcing" that the Consulting firms and Business Schools have been pumping the last 30 years (and yes, I have earned an MBA from a Top 20 school-point of disclosure).
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 .
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.
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.
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.
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.
Ain't that the truth. I have visited 9 countries in past 18 months and the change is amazing....
Agreed
RICK ROCKS! STEVE IS GAY!
Santelli v. Liesman, with CNBC anchors as ring babes, national anthem by the animal orchestra
Steve Liesman's "why should we care" about the dollar comment ranks among the dumbest I've ever heard on business television.
Let's see: virtually all net new jobs created in this country over the past 30 years were created by small and medium size businesses. Small businesses especially do virtually all transactions in dollars and are getting crushed by a weak dollar. It's no wonder each successive post-recession period in the past 25 years has seen a weaker labor market recovery from the prior one. Mr. Liesman and his like-minded weak dollar buddies seem (I'm not saying this is the case, just attempting to interpret their thinking) to be implying that it's a good thing that millions of jobs have been lost by a weak dollar and that millions more jobs will be lost over the coming decades because of a weak dollar policy.
As an American, I find it insulting that other Americans get excited about the millions of jobs we've lost in this country as a result of a weaker dollar, simply so that the larger multi-nationals can export more.
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.
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
I wonder if he's going to tell us again that the dollar bottomed at 78.
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.
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.
for those who missed it Roubini on the coming implosion and how the PTB appear to be completely unaware of the asset bubble
http://www.ft.com/cms/s/0/9a5b3216-c70b-11de-bb6f-00144feab49a.html
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.
How about they both become mortally wounded?
Pimm Fox is an entirely different story.
/facepalm
And Tyler, man, kudos to you for having the nerves and the stomach for watching this ....
Darn Santelli, he keeps wandering off the reservation.
Santelli should be Treasury Secretary.
+100
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????
Glad you asked. This......
http://www.break.com/usercontent/2009/10/texas-a-m-yell-leaders-1465515....
Geithner "Burned Billions," Shafted Taxpayers on CIT Loan, Prof. Bill Black Says
Another one of the nation's largest lenders has filed for bankruptcy. On the brink for months, CIT filed for Chapter 11 protection on Sunday.
The prepackaged plan allows CIT to restructure its debt while trying to keep badly needed loans flowing to thousands of mid-sized and small businesses. The plan keeps CIT's operations alive and makes it possible for the company to exit bankruptcy by year's end.
But here's the bad news: While senior debt holders will only lose 30% of their investment, we, the U.S. taxpayer, will lose the entire $2.3 billion we lent the company this summer.
William Black, professor at the University of Missouri-Kansas City School of Law is dumbfounded. "We put ourselves on the hook in a completely inept way where we lose first. We lose entirely as the taxpayers."
Black, a former top federal banking regulator, blames Treasury Secretary Timothy Geithner for negotiating such a bad deal on behalf of the American public.
His argument goes as follows:
The government was in no way obligated to lend the struggling CIT money and, in fact, initially refused to provide it bailout funds. More importantly, being the lender of last resort, the government should have guaranteed we'd be the first to get paid if CIT eventually filed Chapter 11. By failing to do so, "it's like he [Geithner] burned billions of dollars again in government money, our money, gratuitously," says Black.
Black believes the problem stems from regulators' fears that if the banks recognize a loss on the bad assets it will create a domino effect that will wipe out the entire financial system.
"If that's true we've got to get rid of capitalism," he warns, "because if we can't recognize losses in a capitalist system we have no future."
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.
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.
*Naylor
The interview on Tech Ticker adds more details. Thanks for heads up.
http://finance.yahoo.com/tech-ticker/article/364593/Geithner-%22Burned-Billions%22-Shafted-Taxpayers-on-CIT-Loan-Prof.-Bill-Black-Says?tickers=cit,aig,xlf,skf,gs,c,bac
Not watching the vid. Take your word for it. Any time I hear Steve Lies-man talk I want to puke. Santelli is the only lite shining in this cave of shills. Have CNBS programmed out of my TV and life is much better now.
I not a fan of Rick for his "rant heard round the world", and his support for the Tea Baggers.....but he made sense here. I mean saying the value of the dollar doesn't matter??? WTF?
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!
Very true. Like most causes, once a party becomes Comitted to believing in something, they end up locking into their belief with consistentcy. Think magic trick. It only takes a few slights of the hand to pull the wool over everyone's eyes. Such as the teabaggers. Their original commitment was approaching truth. They've since been manipulated by false profits. They're now on auto pilot and see not the curve in the road.
Time to wake up and see how original thought has changed. You must change with it.
As Ralph Waldo Emerson said, "A foolish consistency is the hobgoblin of little minds."
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.
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.
Beck / Palin... sir, you really do need help... and I won't waste my time with the racial slur.
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.
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.
You'd have to be an inbred moron to follow a movement by Glenn Beck.
Please don't use the word "teabagger" to describe the folks attending tea parties. This term was and is used often in the MSM as a snide, underhanded insult to those attending tea parties.
http://www.urbandictionary.com/define.php?term=tea-bagger
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.
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!
Geithner "Burned Billions," Shafted Taxpayers on CIT Loan, Prof. Bill Black Says
Another one of the nation's largest lenders has filed for bankruptcy. On the brink for months, CIT filed for Chapter 11 protection on Sunday.
The prepackaged plan allows CIT to restructure its debt while trying to keep badly needed loans flowing to thousands of mid-sized and small businesses. The plan keeps CIT's operations alive and makes it possible for the company to exit bankruptcy by year's end.
But here's the bad news: While senior debt holders will only lose 30% of their investment, we, the U.S. taxpayer, will lose the entire $2.3 billion we lent the company this summer.
William Black, professor at the University of Missouri-Kansas City School of Law is dumbfounded. "We put ourselves on the hook in a completely inept way where we lose first. We lose entirely as the taxpayers."
Black, a former top federal banking regulator, blames Treasury Secretary Timothy Geithner for negotiating such a bad deal on behalf of the American public.
His argument goes as follows:
The government was in no way obligated to lend the struggling CIT money and, in fact, initially refused to provide it bailout funds. More importantly, being the lender of last resort, the government should have guaranteed we'd be the first to get paid if CIT eventually filed Chapter 11. By failing to do so, "it's like he [Geithner] burned billions of dollars again in government money, our money, gratuitously," says Black.
Black believes the problem stems from regulators' fears that if the banks recognize a loss on the bad assets it will create a domino effect that will wipe out the entire financial system.
"If that's true we've got to get rid of capitalism," he warns, "because if we can't recognize losses in a capitalist system we have no future."
Sins of everyone? Some of us are more sinless than others.
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.
But, but...Robert Prechter told us that Gold is going to $630/ounce...no?
The dollar doesn't matter and the US is the worlds most closed economy?
WTF did your trade deficit come from then dumbass? 70% of your economy is consumption and most of that shit comes from China. China makes 99.9% of the world's dildos except for you and you ain't going to keep American women happy Liesman. Thatsfosho.
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.
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.
What would a failed financial system have done to the dollar? There's alot of carping about the government spending money but the fact remains the stimulus plan is working. Yes, the deficit will have to be dealt with...and it will be, in part by higher taxes on those most able to pay higher taxes. The dollar is significantly overvalued versus Asian currencies and the countries that peg to the dollar get out "policy" defacto. The dollar has to be secondary, or lesser consideration at this point.
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?
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?
"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.
Jeez..CNBC has now become WWE. both hese gentlemen must be getting big bucks from the producers tp keep this tirade going. " Readers, send e-mails" ?? If you can't get the eyeballs, aim for e-mails.
Santelli.....if you are ever in NY.....dinner is on me.
Santelli.....if you are ever in NY.....dinner is on me.
Santelli.....if you are ever in NY.....dinner is on me.
i used to like it when mcteer brought his measuring stick with him on the set of squalk box...
http://www.bloomberg.com/apps/news?pid=20601091&sid=ac4.u0JfPtWE
IMF sells 200 metric tons of gold to India
can we please get a petition together to get leisman fired from cnbs. I can feel my bloodpressure skyrocket whenever I watch that moron...
Liesman needs killing
sh sh sh shafted by t t t timmay!
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.
THE FACT IS, THE FEDERAL RESERVE, MORE THAN ANY OTHER GOVERNMENT ENTITY, IS RESPONSIBLE FOR THE FINANCIAL CRISIS.
I would ask Ben B., based on FED performance, why he should keep his job?
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................................................................................................
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.
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!
http://www.fundmymutualfund.com/2009/11/nearly-600000-americans-walked-a...
"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.
cougar
"inter-gallatic-sized Ponzi clusterfuck." ROFL!!!
Can't seem to stop fighting over deck chairs, meanwhile ignoring the increased size and frequency of the icebergs.
After reading Roubinis article, I think I've got it, perhaps Geithner etc are pissed that everyone didn't have as bad a crisis as the US and are set to level the score. Bailout 2.0, take that you full employment Aussie bastards!
AKA "the race to the bottom."
Everyone a winner. Boo-yah!
That English CNBC anchor is actually half-decent.
He won't last long there.
I like his hair, makes me feel better about mine.
Robert McTeer is playing dumb, else he'd have to admit the FED/TREAS is being irresponsible!
Sitting on an airplane during noon hour I caught 10 minutes of CNBC gushing over how Buffet buying BNI was 1) a statement that all is well with the US economy and 2) speculating the acqusition was really an endorsement of Obama's policies. Beyond partisan -- it was sickening. I could not believe they would spin this M&A transaction into BO is our messiah, but they did it. Wow.
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.
Thekidfrombrooklyn.com should have listened to this latest episode between Liesman and Santelli. He would rip Steve a new asshole and send him to Starbucks.
"Average Joe is not like you Rick"
I beg to differ. With the productive capacity of the US hobbled from offshoring, I certainly care. If I want to see the world, buy a toaster, LCD TV, Car, Salmon caught in Washinton and packed in China....oh, I care Steve of the Polished Cranius Rectumitis.
Lies-man is sucking Ben Dover's dick, I hope he fucking dies along with his hubris. People like him are the reason other nationalities hate Americans.
Pardon my french. But that fact that he still has his pump monkey job spouting anachronistic nationalist bullshit, just pisses me off.
"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!")
Greenback two-step being what it is, whose payroll is Liesman on?
Treasury or Fed?