This page has been archived and commenting is disabled.
Rick Santelli Goes Nuts In A "Top 3" Rant Protesting (What Else) Endless Subsidies And Fed Meddling
Rick Santelli went a little nuts this morning, in a rant that easily qualifies in his Top 3 of all time. The gratuitous rating tends to correlate with the peak dB achieved while screaming at some gratuitous idiot and/or the length of applause by fellow CME floor members. (We also appreciate the advertising). Rick gets wound up based on earlier disclosure by Bill Gross that if the government guarantee of the GSEs were removed, he would only participate in the mortgage market if there was 30% down payments by first time homebuyers (oh, and, tee hee, guess who will be present and providing "eye of the monopolist beholder" advice at next Tuesday's panel). As Rick summarizes: "the people holding, the Treasury or institutions, are locked up in this place where the subsidies can't come out; extrication is going to be difficult much less getting out of the way of anything they may do in the future." Yet what sets Rick off is the debate over why the Fed should not let housing crash to its fair value bottom, instead of artificially pushing rates lower and lower, which benefits nobody except those serial refinanciers who hope to lock in a 30 Year at 0.001%. The screamfest begins at 5:40.
And by the way, Rick, whatever you do, don't, don't read the following article by Bloomberg: "Manhattan Luxury Condos Try FHA Backing in Sales `Game Changer'" in which we read that "The Federal Housing Administration agreed in March to insure mortgages for apartments at the 98-unit Gramercy Park development, known as Tempo. That enables buyers to make a down payment of as little as 3.5 percent in a building where apartments range from $820,000 to $3 million." Yes, ladies and gentlemen, the FHA is now insuring purchases of ultra luxury appartment by the ultra rich, affording what is essentially a no money down "NINJA/subprime-like" creep up into the most expensive properties in the world, entirely on the backs of the US middle class. If that "uber-wealthy" don't blow up the FHA, and the $7 trillion in GSE debt, nothing will.
»
- 34152 reads
- Printer-friendly version
- Send to friend
- advertisements -
WORD. Probably even more so.
The first rule of being the captain of a ship is "if something bad happens on the ship, it's the captain's fault". Blaming Bush two years into your Dear Leader's administration does not demonstrate leadership, but is a demonstration of weakness. How many hundreds of billions have the banks stolen under Obama's loan guarentees and other assorted bailouts? Bush-era policies?? Obama is not only continuing every single one of them, he's expanding them to new levels. Nice try, Johnny Bravo, but blaming Bush for Obama and the Dem's failures ain't gonna fly.
I think your statement clearly shows the problem facing this country. The political parties have successfully created an environment where people are too blinded blaming the other party to realize that both parties are equally corrupt and seek to benefit the same "Top 1%". It is all a smoke screen utilized by the corporatocracy to keep you in the dark. The same thing goes for abortion, gun rights etc... It is like con-man screaming in the street so that when you go out to see what is the matter the partner sneaks in your back door and steals your Ipad.
P.S. I didn't junk you either.
Who the FUCK cares about Rick Santelli ?
Monetize the debt, make the dollar worth half of what it is and bring the jobs home
Considering he is the only Austrian economist in the mainstream media, I fucking care about Rick Santelli.
Is that what your target is ? half ? ask China what they think.
Somebody remind Putin that the first one out profits the most. Imagine that, an x KGB agent is behind the death of the dollar, how fitting....
I'd put him more in the Freidmanite Chicago School camp, given he is no friend of hard money, at least from what I've seen.
That said, he is closest thing to coherency that exists in the CNBS world.
To think that one of their commentators would dare to say "let the housing market fall" with complete understanding as to why it is not only good, but necessary if we ever want to regain a functional, private mortgage market. (the key here though, is recognizing the abstract "we," noting that some prefer a political mortgage market)
I was hoping he would ask "but, what about the savers?" when the others were discussing how the Fed had to keep propping up the mortgage market by pushing rates down. Then he could've answered his own question, "oh wait, the Fed has already destroyed the savers, turning them all into debtors in the process."
Kudos Rick, you did good!
He's Austrian school.
This could happen.
that will be dynamite right up until the rest of the world dumps our debt, there is a global run on the dollar, the price of oil goes to $5,000 per barrel, and we have a thermonuclear war
am thinking that's a bad idea all around, my friend
at this point, not sure anything will prevent your list.
side note: Is the "eye of the monopolist beholder" a cyclops?
Puntin will press the button before that socialist weasel Obama.
True, in fact Obama would never press it I think.
The fed only has the ability to create hyperinflation, nothing else
you're right Spitz - pretty poor showing by Payden Rygel in that clip
Fed pretty much has the ability just to fuck shit up even more at this point, and that's about it
jamming more money into the economy right now is like trying to fuck with a limp dick
and the temporary effects, like any fake orgasm, are nothing more than insult
A Prophet crying in the wilderness...
WOW
The level of desperation must be that high to allow this on the show!
And the ZH quote!
The next thing you know they're gonna quote ZH commenters too.
I highly doubt anyone associated with ZH will make themselves publicly known anytime soon.. kinda like the folks on Wikileaks...
LOL
I can picture them repeating something idiotic like 'GOLD 5,000 BITCHEZ'
That would be funny tho.
This shows that opionion-makers have lost their compass completely.
The system only goes on by inertia and self-interest.
Rick Santelli is an austerian now that his wall street buddies have been bailed out and have a line at the Treasury. He wants to shaft only the middle class now that the upper class are fine. Now let's see how the "austerity for the poor/middle" goes after the Election 2010, when this happens and everybody cries for help.
In my opinion he is stooge of the right.
Just because somebody advocates sane monetary policy, it doesn't make them a "stooge of the right".
Just because somebody advocates a sane monetary policy, it doesn't make them a "stooge of the right".
Haven't been following any of this much, have you? Santelli has been consistent sense the start - he's a bond guy. He understood the Governments screwed up agenda a long, long time ago...
You really need to keep the players straight if you want to be taken seriously.
I need not be taken seriously but don't worry your Tea Party crowd has been hijacked by the elites. Look at Scott Brown - how he conned you guys. Now go ahead and keep following the puppets of the right (and left)
I understand your sentiment, but why take it out on Santelli? It isn't as though he just last week stopped agreeing with Leo and jumped on the bandwagon.
Hes been advocating pain for a long time now , he was never a believer in more govn central planning. Youre wrong.
Santelli for president - the guy is 100% motherfuckin right baby! Not only do we need to get the Fed outta the tinkering business - we need to get the Fed outta the Fed business...
He's got my vote.. and best of all, it seems he has a level of common sense that is sorely lacking in government or on CNBC...
Actually Tyler, I want to be paid to borrow their money for 30 years.
Santelli is the guy Jon Stewart made fun of in that brilliant, hilarious skit?!? "OOOOOOOOOOOH, big bad government is bad, the Fed is bad, this is a failed experiment"...blah, blah, blah. This guy keeps repeating the same bullshit. The big banks own the Fed, Mr. Santelli. PERIOD. What they say goes. And right now they're telling Bubble Ben to reliquify and give us some more juice.
Leo, when the banksters flee in their helicopters to escape the angry mobs I see you hanging on the skid, fall of Saigon-style. Think they will kick your fingers?
Leo, that skit was about as brilliant as your solar dip buying policy.
Stewart knows as much about econ and finance as Rick knows about comedy. Luckily, Rick doesnt fucking try to be comical on TV whereas Stewart tries both.
It is a shame that snark is passed off as high humor
Jon Stewart gives liberals more wet dreams than Obama would a stadium full of Keynesian economists..
Couldn't have been more eloquent myself, +100000.
Boy, given the response, it's pretty evident someone has a lot riding on the Fed.. and it ain't the banks or Santelli. Sorry - but for the taxpayers' sake, I hope you blow your load on overpriced and artificially-inflated stocks because we really don't want to pay for any more market interventions.
Everyone has a stake in the financial system, and millions of people are hoping to retire in dignity. You bet your ass I'm rooting the Fed on, and shorting Santelli and the rest of the dumb cockroaches out there who believe in "leaving the market alone". Yeah, that really saved us from the financial crisis!
Retire in dignity? The last decade not only did stocks not go up, but your precious Fed eliminated the interest income seniors count on to live.
You just hit a new low, Leo.
+.01% (interest rate on checking accounts)
Totally agree with your statement.
While I like to read his other (pension & health related) posts, I have to agree on this one. Good retort, ITG.
+1%
ZIRP is nothing but a wealth transfer from (conservative) savers to borrowers and speculators. The stimulative powers and benefit of ZIRP and ultra-low interest rates is nothing but a myth spread by its primary beneficiary - the financial services sector.
Leo, given your self-proclaimed expertise regarding pensions, you should understand how artificially low interest rates have been devasting to fixed income investors. Pensions have been forced to signficantly increase their risk profiles (equities, alternative assets) to make-up for the shortfall in fixed income returns.
I think youre the most brainwashed fool on the net Leo.
Just had to share. Have a good weekend.
It's a trap, that's the problem you don't acknowledge. The Fed can't simply inflate our way to prosperity. You hope for a reflation of your precious risk assets. From your pension-based view this allows people to retire in dignity - that stocks are higher. Damn the torpedoes. Higher oil, food, tuition, health care. Lower wages, home prices, etc.
Is that dignity? Can the economy grow forever? Should we just bulldoze the vacant houses to build new ones? Print some money to bury it and employ a couple of people to dig and then fill the holes?
I'd be rooting for the Fed if they were actually trying to fix the economy and not just saving their banker owners. Creating a savings rate to encourage investment. Allowing a recession to clear the market.
The gov can't guarantee or own 95% of all mortgages originated. It can't. The sooner it gets fixed, the less painful it will be.
Apparently, unlike you, I actually care that my kids will have a future and don't mind sacrificing to get them theirs instead of borrowing against their standard of living to prop up something that is clearly unsustainable.
The problem: " and millions of people are hoping to retire in dignity."
The value of already-performed labor decays, because the product of that labor decays through entropy.
You want to trade your 1962 labor for a failed company (for example) for my current labor? How is that supposed to be a good deal? The institution you worked to create cannot benefit me, and yet you want my labor to benefit you. Your 1962 failed-labor dollar is pulling down the value of my 2010-labor dollar.
Yes we do, but it should be clear to all by now that the endgame will soon be forced upon us, like it or not. I guess by your statement you're hoping to make it through your life before the SHTF, just like the generation before you. Sorry to disappoint you but the time of reckoning is here.
Please explain what 'retire in dignity' means; especially to those who are retired and trying to live on fixed income instruments offering nearly zero interest.
Thank you. Jefferson knew what to do with people who want to print money, and I suspect he'd have the same prescription for people who want to suppress interest rates.
double post
Leo, speaking of dignity and retirement, are you one of those Canadian Michael Moore Socialists destroying free markets and letting the middle class pay high taxes for free energy, healthcare, lunches and retirement fantasies?
Have you ever read Henry Hazlitt's Economics in One Lesson?
http://en.wikipedia.org/wiki/Henry_Hazlitt
Leo's comment reminds me of something my favorite law professor, now passed on, said. He said the only real question about regulation class is this, is it good regulation or is it bad? Unfortunately Leo, as you may have gleaned from this site and others, a good number of folks are beginning to think that the regulating system is broken and corrupt. Glass Steagall was "good" regulation. But there's a big world of diffference between separating investment and retail banking and artificially manipulating the price of money, houses and other things for decades until everything blows up after which the ill conceived private debt is quickly made public. That alone makes it "bad." The fact that it "helps" a few criminals at the top and hurts the rest makes it worse. Crimes are regulation and we don't need more of them, we just need them enforced.
Jesus Christ.
THE FINANCIAL CRISIS WAS CAUSED BY GOVERNMENT DISTORTION OF THE MARKETS.
I am with you on this one. I want USA(+everyone) to flourish though do not want FED to be making everyone debt slaves. Somehow this debt has to be unwound. The estate tax for common folks is a big reason why people have to always take on debt and pay usury.
Iam loaded with monetary commodities(since many years), but do not want the sky to fall.
lol! You honestly think the markets would not have survived the crash? They are so fragile that every stock would go to zero? That's funny. Look at Russia. Their market dropped 80% and they survived.
Don't feel bad. You weren't the first person to fall for govt fear-mongering, and you won't be the last.
"Leo", your comments here are so consistently idiotic, malevolent, unintelligent and unintelligible that I simply refuse to believe that you are a real person, and not just some sockpuppet created by the ZH team to increase forum participation.
If you are in fact a real person, however, God help you --- you are as clueless and amoral a one as I have ever encountered.
just some sockpuppet created by the ZH team....
ROFLMAO!!
http://www.youtube.com/watch?v=AyErh8TTBJ0
akaka,
You are always going to be a clueless moron, don't even bother replying to my posts.
Leo, hope in one hand and crap in the other. See which one fills up first.
This isn't a personal attack, mind you, I think it's important that this isn't an echo chamber.
I don't know exactly what you mean by "retire with dignity", but I'm assuming it does not involve living in a cardboard box on the street. The problem is, that generation had their cake and ate it too for decades, and now they expect us to pay for it.
I will never collect social security. I will never collect a public pension. I have no insurance, and will not be able to afford it for a while. I will most likely never be able to own a home, unless I'm able to break out the hockey mask and bullhorn and drive laps around it until they surrender. I'm barely managing to keep food on the table, gas in my car, and a roof over my head. More often than not in the last 10 years, my net income has been in the 4-figure range.
These people, true, worked their asses off. Most of them, for most of their lives. But they also made a hell of a lot more money than I do (in terms of purchasing power), have had steadier employment, had benefits, possibly had a pension coming, and had the peace of mind of the SS program. And they also got to live in a nation awash in cash generated by turning that SS program into a ponzi scheme.
And now I'm expected to have none of that, and try to make a living in an economy that is having the shit taxed and monetized out of it to pay for it, and, should I come anywhere near success, also get the shit taxed out of myself.
Get real. One way or another, we're not footing the full bill for the previous generations' fuckups, particularly if "retiring with dignity" entails spending the last 30-40 years of their life playing rounds of golf, watching The Price is Right on the jumbotron in their condo, and gobbling down more in pills in a month than I make in a year. I wish them the best of luck in pursuing that dream, but they need to take their begging cup elsewhere.
"Wish in one hand and shit in the other, see which one gets filled first"
-Green Day
you all' simply have w a y too much time on yours hands.
The very reason I no longer read your stuff, Leo, is because you want to retire. Why does any rational moral being think that retirement is a good thing? You have a fundamental problem there.
Hey Clint, people don't want to be slaves till the day they die. Fucking right I want to retire, preferably in Crete on some remote village far away from the slaves.
Get a better job, One that has some meaning. You won't feel like a slave.
You're rooting the Fed on?
You worthless thieving piece of shit. what you are rooting on is the stealing of wealth from other citizens so that you can retire and die before everything blows up and those of us too young and too poor to retire are left penniless, homeless and starving.
Go ahead and continue to beleive in the Ponzi scheme because that's all you have. The rest of us have firgured out that the system is already bankrupt but you want to make sure that everyone else goes down so that you can have a few years shuffleboard. Go fuck yourself.
Jon Stewart is a government and celebrity worshiping douchebag.
Santelli is right: LET THE FUCKING MARKET CLEAR.
I have urges to scream those five words until my throat is raw and bloody, several times a day.
fuck yeah - Stewart needs to be beaten to death by midget strippers wielding 15" broken-glass encrusted dildoes dipped in bacteria-laden dysentery shit while having his dick chewed off by a rabid spider-monkey
- they should abolish stoning for adulterers in Iran, and reinstate it for douchebag TV hosts - I got $100 bucks on a one-way for that cocksucker to Tehran
PS I agree, by-the-by. Let the market clear. Cheerio, gents...
I wonder what your view would be if the USA had been carpet bombing Greece all this time.
So Leo, can you 'splain exactly why banks would want to further destroy their loan assets, balance sheets and trade with monetary inflation and depression combined?
Just wonderin'
Leo:
This is your worst post ever. Go away. Find another forum for your misguided thinking. Yeah, the Fed is run by the TBTF banks. So why is that a good thing? Reliquify? The only thing that the Fed's "reliquifying" will accomplish is putting more money into the TBTF banks who will use it for nothing other than their own good. Not the American peoples' own good. We live in a fascist oligarchy that must be changed. Our founding fathers are rolling in their graves as a result of the capture of government by the corporatist elite. This will not end well. We are becoming serfs in our own country. Oh, I forgot you're Canadian. Well, go fuck yourself. When the American people have to suffer from the fraud perpetrated by our elected criminals and compounded by the greedy banksters, it is clearly a good for Wall Street and screw Main Street mentality. I, for one, am fed up and am not taking it anymore. Buy your solars and go to hell!
Santelli is a god!!!! Why is it so hard?
"Disinflation" is that like "Partly gay"? Oh, and not that there's anything wrong with that, the gay part I mean..
Probably more like gay for pay--which, ironically, more unemployed folks will be looking forward to as a job opportunity in this "summer of recovery"
Ahh... solve the problem - just give 'em the houses.
Which unfortunately, is all too likely to happen. It that were to become the case, I guarantee you that I would never pay a single solitary effing dime on my mortgage again.
Dear BofA,
Since you bought my mortgage for 16 cents on the dollar, with money you essentially stole from me anyway, I now consider you paid in full. I guess if you are going to have me forcibly removed, there isn't much I can do about it. The keys are in the mailbox. Any further correspondence can be sent to me at my new address in the 100 Acre Wood. Now kindly go fuck yourself.
P.S. Sorry about all the plumbing fixtures being gone. SOMEBODY must have stolen them while I was gone; probably to put in a cabin somewhere built with cash. The giant shit I took on the living room carpet is all yours.
CC
You know it's going to happen eventually... they'll start handing out the houses before releasing their death-grip on power.
Who actually qualifies for a mortgage now anyway?
The average FICO score is sub-500 now........
Great imagery, steak.
Fact free screaming. The only thing they all agree on is that the economy is in deflation - on a day when the CPI came out at 0.3% - which is a 3.6% annualized rate.
Deflation is credit contraction. Deleveraging, defaulting and tightening lending standards.
CPI = consumer price inflation but I doubt that you understand difference.
Increasing prices in the things we have to have to live, decreasing prices in toys.
Don't trust CPI. You'll see it when it's too late. Deflation = ALL assets fall and debt remains the same. That's all you need to understand as you watch BB keep adding and supplying money.
8% 1980 methodology CPI due to government free rides, red tape and taxes.
http://www.shadowstats.com/alternate_data/inflation-charts
Not to be confused with monetary and debt deflation:
http://www.shadowstats.com/alternate_data/money-supply-charts
Thanks for posting this. I don't watch cnbc anymore but i really like Rick.
Thanks for posting this. I don't watch cnbc anymore but i really like Rick.
Nothing will ever top telling Liesman to read some Austrian Econ instead of the funny pages but classic Rick nonetheless.
I tried to have this question answered on the forums to no avail: Is QE Lite worse than version 1.0?
Obviously, both are just degrees of terrible, but unless I'm completely off track, QE Lite actually seems worse than the original. Here is my understanding of the Fed's recent announcement. The Fed is taking principal payments received from MBS and agency debt to purchase USTs. That part seems pretty straightforward. Where it seems worse is when I thought in terms of the effects on the Fed's balance sheet.
1) Fed makes original purchase of $300B in MBS. They have a $300B asset (whether they bought it mark to market or myth is somewhat immaterial) and a liability of $300B FRNs.
2) Assuming anyone in the U.S. is still making mortgage payments, Fed receives principal payments from MBS of $300B. They now have $300B asset of FRNs versus $300B liability of FRNs.
3) $300B FRN asset is used to purchase $300B in USTs. Thus, removing balancing asset for the original $300B FRNs and adding another $300B FRN liability.
I definitely could be missing a step here and feel free to correct me, but it seems as though in this isolated transaction the Fed levered their balance sheet 2 to 1. If this is creating a precedent for similar purchases in the future, the disastrous end result is probably the same but seems to up the ante on boring QE1 style money printing.
Assumption 2:
A) A significant portion of unemployed Americans are no longer making mortgage payments.
B) If the $300B MBS purchase is paid off, the Fed no longer has a $300 B balance sheet asset.
Assumption 3:
Mortgage assets are bank balance sheet assets, not liabilities.
The Fed's balance sheet is levered 20:1, turning 5% usury assets into 100% ROIs,
keeping 80% for Fed Art, Dining Clubs, 5 Star Expense Accounts, Helicopter and Jet Fleets on call, More Economists than Zeus, Staff, paying 6% dividends on Fed nominee stock held by illuminati, and throwing 20% to the Tresasury to continue the charade as a government organization accountable to Congress and The People,
IF the mortgages are serviced and repaid.
Without access to a transparent list of what 33 Masonic Maiden Lane purchased, will guess the Fed bought no AAA Sub-Primes, but true top-quality mortgage credits.
If they didn't, the collapse of the Fed may solve a lot of headaches for free enterprise and markets.
If the Fed is indeed rolling Mortgages into Treasuries, that may prove a template for bailing out FDIC, FHA, FICA, FNM, FRM, PBGC and other insolvent government agencies.
Of course the increased risk to the Treasury may be reflected in higher real interest rates, currently 3.87% 30 year Treasury plus 35% RE deflation = 38.87%...
There is no QE II.
Fed owners destroyed everyone with the economic neutron bomb called usury and may be waiting to foreclose bankrupt leveraged ownership for pennies on the dollar.
Tilt...
Step (1) is Monetory stimulus to save Banks
step (3) will be fiscal stimulus via Govt spending.
In step(2) they FED gains $300B asset of FRNsby people paying of debt instead of them saving, so money supply in populace is decreased by $300B. The net money printing was only
step (1), which was actually $2 Trillion. I think QE Lite is better than QE 1.0 because Govt spending is guaranteed unlike private spending(now no one wants Loan). This QE Lite can defintely cause inflation unlike QE 1.0, where Banks just locked $2 Trillion as high powered Reserves in FED account and not lending out, which has so far prevented high inflation. If FED stops interest payment on this $2T reserves or deduct any fees on the reserves, Banks will be on the streets issuing loans again.
I love how he says: "Let me read you something that Zero Hedge quoted Bill Gross as saying..." as if that makes Gross's pronouncement more legit (which of course it does).
"It will purge the rottenness out of the system. High costs of living and high living will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up from less competent people.”
-Andrew W. Mellon
May I add "Liquidate the Fed, Liquidate Freddie, Liquidate Fannie"
Only a Schumpeter creative destruction and true free market capitalism can fix this mess.
Well, we're about to get a massive dose of creative destruction, breaking eggs and whatnot.
As for true free market capitalism, I doubt that is in their omelet recipe.
Agreed - and Leo should take notes here ;)
Rick! I know you're posting here under an assumed name.
Please keep it up, because I keep loosing IQ points every time I hear someone say 'Stimulus'!
.. or 'we need QE' ..or 'open the Discount Window', etc etc...
May the farce be with you! Thank you Rick Santelli.
I'd love to see a live debate between Santelli and Bernanke. Talk about a one-sided beatdown.
The housing price targeting by the Fed/govt really has me scratching my head. The majority of americans still pay their mortgages. Is it really worth alienating 80% to rescue 20%.
Funny, I don't really blame Bernanke. He's just gamely doing the job he was hired to do. He knows the risks - just don't make the mistake of thinking that he's working for your interests.
I agree. Cant blame him. However he gets no pass because he got the job PRECISELY BECAUSE OF WHAT HE BELIEVES. Its exactly how you get employment with CNBC.
To avoid conflicts of interest, CNBC doe snot allow employees to invest,
thus for the most part creating financial bobbleheads reading teleprompters like 0...
The only thing wrong with Bernanke is really a problem with the Fed which was Greenspan beginning the ultra-low interest rates in the first place.
It's the only way to save the banks. They just think short-term hoping to make it one more day, month, election cycle. To hope for a miracle revival. That maybe it's cyclical and not structural. Or to get theirs and get out.
Yes, they know they are alienating people. They hope they can buy enough votes and allow for no other alternative for the alienated. The Republicans would be doing the same thing, in trying to save housing.
Unfortunately, they are sowing the seeds of their own demise, and our own. It would have been better to take the pain early.
Housing be allowed to find a natural bottom, who is this heretic?
Interesting that nobody even mentioned QE2, I mean real QE2, not this completely irrelevant "QE1.1". I guess Mr Dove in the middle was implying that QE2 was where the Fed should be going.
Just posted my thoughts on QE2. Which I think would be about as useless and irrelevant as QE1, but likely causing a bit more inflation.
One thing the QE fans aren't taking into account is that the Fed has no control over the extent to which QE builds cash balances and the extent to which it expands credit. Some stress that QE can help expand credit, others stress that QE is harmless if it only expands cash balances (and also useless?). But they don't seem to get that the Fed has no control whatsoever over how QE divides up between cash accumulation and credit expansion. The Fed no longer controls broad money supply.
The score for QE1 was about 90% growth of cash balances, 10% credit expansion, but that 10% multiplied into >7 times as much M2 as M0. My guess is QE2 would be heavier on the credit expansion side, as it's not as panicky of an environment as 2008 (yet). And how much idle cash does a bank need?
http://keynesianfailure.wordpress.com/2010/08/13/qe2-the-overblown-herohorror-stories-and-the-mediocre-reality/
I think Santelli and Mike Pento should start their own news organization. That would be "Must See TV."
With Dylan Ratigan, Bolling, Strazini and Jeff Macke...
He mentioned ZH. Must be time to stop reading this blog.
I think the only ones who don't read this blog are the SEC and FINRA. Even Obama has it on his desktop. :>)
Remember we had a death cross in FTSE 100, DJIA and S&P 500 this summer?
A death cross followed by a hindenburg omen, how's that for a predictor?
(edit: double post)
His comment at 4:00 sums up Amerika today. Death before price discovery (tm).
"Death before price discovery"
Love it.
Somebody pissed in Rick's cheerios today. It is not just this rant, he has been on the razor's edge all day, just now trying to pick an obtuse fight with Steve L
I love it that Rick quoted Zero Hedge. Excellent job Tyler
You know the Rickster is here. Mr. Santelli- If we get you a shotgun that shoots foot long dildo's like the one this dude breaks out at 2:30 will you please use it to shut Liesman's piehole? CB
http://www.youtube.com/watch?v=lRgHSxWnhqk
Rick should probably get someone else to start his car today.
He just roshamboed Ron Insaner - who tried to unsuccesfully to employ the, "No no Rick, you don't understand..." defense.
circle slash Insana the failure.
How does he think he has ANY credibility?
I nominate Leo.
I can't wait to lock in my 30 year at .0001%
bring it.
Bingo, with 100% deflation making real rates 100.0001%....
deleted. double post.
Just in case Santelli actually reads these comments:
I'm in the market for a home for my family. Sold a decent one two years ago, got that pile of cash for a downpayment. Credit rating over 800 because we don't do monkey business. Got a kid and want to put down roots.
The more the government does "for" housing, the less I trust the housing market. I'm terrified to buy because I don't know what crazy stunt they're going to pull next. We want a family home to live in-- right now a rental is serving that purpose-- we're just upper middle class folks, not looking for anything spectacular. But we DO need stability and honesty in the market before we can make an offer without a yawwing pit in our stomachs wondering if we're going to be the financial sob stories of 2013.
There was a bubble. Homes should be relative to incomes. The market needs to acknowledge that before buyers will get in with both feet. Cutting mortgage rates to zero would only freak me out more.
If anyone is listening, please stop the tinkering and "support." I'm not looking for a bottom. I'm looking for stability.
Homesteading coming back...
http://extras.denverpost.com/archive/captured.asp
CNBS is in the entertainment business not financial reporting so they get some buzz out of Santelli sticking it to idiots. So they might keep him around. If they get more political pressure from higher ups, Santelli might wind up on Bloomberg or FoxBusiness. Yeah, and he should wear his water wings in the hot tub!
nice TD!
That giant suckin sound ...
Just remember folks, we are piling on the National debt at the rate of $500 per person a month. Does anyone think we're getting our money's worth?
yeah, i can't quite determine which is moving faster, the pennies spincolumn at the gaspump or the 100 dollar spincolumn on the national debt clock.
Love the Santelli. He's got to get his face on some more mainstream programming so the message can be disseminated to a broader and less sophisticated audience. He has the ability to describe what's happening in less technical terms and that's what needs to happen if the masses are going to understand what's happening to them.
Rick on CNBC is great but some time on some other mainstream TV shows would be terrific.
Did Rick just expose himself as being one of the Tylers? ;)
We need some good screamin. People need to hear it. Keep it up, Rick.
GREAT JOB, SANTELLI!
**SANTELLI FOR US SENATE! **
30% down payment forces people to budget and save and have some skin in the game. If Obamatard would get out of the way of homes reaching a clearing price level, the amount of a 30% down would be considerably lower. FHA backs 96.5% LTVs or higher, which increases effective demand, which increases/supports home prices.
In roughly 2 years, look for Obamatard & others slimy polis to to propose legislation for another $50k give-away or foregiveness of the first $50,000.
I actually don't think there should be any requirement for how much of a down payment. All you need to do is stop bailing out these damn banks and mbs holders and they will start policing the loans themselves once they know they are on the hook.
Seems to me all this "Austrian economics" that's been leaking in to the public discourse is really just a propaganda campaign to prepare the herd for the coming cuts in Social Security and Medicare. Don't expect Santelli, Kudlow et al to advocate ending corporate subsidies or Defense spending however.
100%. That is the present goal of the elites. After giving all the corporate subsidies so that CEO wage can be exhorbitant, then start cutting on small people by Raise social security age(both dems & Rep support it) after having stole all our money via that SS Tax/Medicare Tax. Their plan is austerity and they will be successfull. Let them cut Defence, corporate subsidies, Foreign Aid....
why hurt small people ? Why make them debt slaves for the past 100 years ? Looks like everything is planned and moving as per scedule. when they want war, cut spending, - they get Republican puppets elected. when they want state to replace family, more control on people, get people addicted on Govt, make moral values convulated(see Calif prop 8 drama), tax increase, VAT, cap & trade - they get Dem puppets elected. NAFTA/outsourcing have support in both camps.
Next time Santelli will say, "I'm not Rick Santelli, My name is Robert Paulson."
Thumbs up on that one!
Santelli is the sanest financial reporter of all time. Long live the Rickster.
Nice one, Rick!
Holy shit, cnBS actually became CNBC for a change. He'll be dead in a plane crash or food poisoning in a week. Keep it real Rick! ZH, fuck yes!
Lets have a rant in song:
http://economicprotestproject.blogspot.com
Got a bunch of these in the pipeline. Its time we had some protest music.
If you are musician and want to contribute talents, let me know over on the site.
ex VRWC
Rick,
If you are reading it, you should know that you have fans in Eastern Europe too. I stopped watching CNBC but I always keep watching you ;). I enjoy your honesty and care for normal people.
all the best,
Radek
Rick Santelli ChiTown Represent!!!
I love low interest rates! They taste delicious and I can feed my whole family on them....which comes in handy now that I'm unemployed and living on the streets. Thanks Uncle Ben!!!
What a top bloke,a rarity in todays world he cares,he,s passionate,he,s sick of bullshit,he,s a taxpayer and he ain,t bloody happy.Look how rattled people get when they are challenged,like they are actually "Accountable" (can,t be having any of this he,s thinking).Not enough people like this around to get things sorted.Guy should be given the Congressional Medal of Honour for that performance.Welcome in my gaff for a pint anyday.If he was over here he would be on his way to the Palace for a Knighthood.Great Bloke.
Santelli is passionate about his convictions. He isn’t just there to see how his tie looks on television. He cares. He’s thinking about people who have been cheated, people who can’t get into the housing market because it’s been stolen. He’s thinking about truth and honesty and a just economic system. He’s real. (And if he isn’t, he sure gives a tremendous performance.) He’s a man who cares about his country; that these issues need to be solved by using honest methods and honest contract.
American enterprise flourished because of the principles of a contract society. That simply means that each party to the contract gets what he wants and is satisfied with the terms. That’s been severely adulterated with a typical government program establishing 2400 pages of its side of the contract—while your side of the contract is not represented. And as an American citizen you can take it or leave it—if you want to buy a house, join the military, participate in Social Security or healthcare, save dollars and assets —your side of the contract is not represented. The free market, the invisible hand, is no longer allowed to operate.
Unless…as boooyaaaah on Zero Hedge stated Tuesday: “The Invisible Hand begins the Big Slap Down …” Here’s boooyaaaah’s great definition of that back of the hand.
“In economics, the invisible hand, also known as the invisible hand of the market, is the term economists use to describe the self-regulating nature of the marketplace.[1] This is a metaphor first coined by the economist Adam Smith in The Theory of Moral Sentiments. For Smith, the invisible hand was created by the conjunction of the forces of self-interest, competition, and supply and demand, which he noted as being capable of allocating resources in society.[2] This is the founding justification for the laissez-faire economic philosophy.”
Central planning always kills prosperity. And in this case it isn’t even good attentions. It’s central planning by private concerns masquerading as representatives of the public. It’s not some nice guy making decisions; it’s a crook. (By the way, John Dillinger's activities were not called "meddling.")
Amerika is a keptocracy. The predatorclass owns and controls the socalled government, and purchases (bribes) our socalled leaders and regulatory agencies to excuse, cloak, and ignore, crimes and abuses by the den of vipers and thieves in the finance oligarchs, and advance policies that benefit the predatorclass exclusively and singularly, - and that cause severe injuries and harm to the greater population and the nation.
As well as gold, I'm long on guns and ammo.
In a world where there are no laws, there are no laws for anyone predatorclass biiiiiaatches!
who is the goose in the middle?
I wouldn't call him the ONLY Austrian in the MSM - Peter Schiff comes on sometimes, that CATO guy Dan Mitchell gets on about once a month, and there are maybe a couple others. And Ron Paul and Judge Napolitano are definitely Austrian supporters, though they aren't technically economists.
People are capable of great things and one of the saddest things about the Western World since WW2 is the lack of talent at the top.If we look at the modern world we see leaders who have come from the right background,had the right education,got the right certificates and know the right people and quite frankly our whole society,way of life,purpose and values are dying because our countries are failing and have been for years.The current financial system is a symptom of the malaise that we seem unable to shake our systems out of.Either we grow some balls and address our problems or pretty soon we are going to run out of sticking plasters.Nobody wants a war but in a war situation natural talent rises to the top,a nation can,t afford to piss about.The time for words is long since over,the time for action is now.We either sort things out or allow things to drift and suffer the consequences.
Part of the solution is more state and local power instead of federal power. The reason being that people can more easily be watched and held accountable by their constituents. If I disagree with Obama, there is nothing I can do about it. But if I disagree with a city councilman I can just walk down to his office and tell him what is up (OK maybe not in NYC or Chicago, but in 95% of small and medium towns - you get the idea though).
Zero interest rates is the answer and screw your pension. You can't expect to work 30 years and contribute 5% per year and then retire collecting 90% for the next 30-40 years. Mako is right, interest is what kills an economy and it doesn't matter if it's based on paper or gold.
Low birth rates,poor wage rates,high taxation,low skilled employment,unadressed crime,poor Governance,Corporate fraud and good old instability do more to destroy any economy than any guy who,s worked 30 years.How many people in our countries have worked 0 years and there is a huge part of your problem.