Rick Santelli

April Cheers Bring May Tears - Something To Keep You Up At Night

"I’ve said it a thousand times, you can bend but cannot break natural laws.  And while technology and lack of broad participation in the markets can facilitate a bending of the natural laws at some point the fundamentals will release that grim swan upon the world.   And so if you are still buying into the idea that the worst is over and we are now bound for the next 7 year bull, let me give you something to think about as you lay in bed tonight."

Here Is What Janet Yellen Answered When Asked If The U.S. Is In An "Economic Bubble"

"...we tried carefully to look at evidence of potential financial instability that might be brewing and some of the hallmarks of that, clearly overvalued asset prices, high leverage, rising leverage, and rapid credit growth. We certainly don’t see those imbalances. And so although interest rates are low, and that is something that could encourage reach for yield behavior, I wouldn’t describe this as a bubble economy."

Santelli Slams Protesters Blockading CME As Traders Unload On "Soros Paid Morons"

The entrance to The CME has been blocked for most of the morning by "Soros-paid Morons" according to one trader. Rick Santelli has a few opinions on the apparently ill-informed protesters' actions, and concluded, "It would be sad commentary - based on what the politicians have done with the budget - to chase more companies out of Illinois."

The Debate: GOP Candidates Elevated, CNBC Eviscerated

On Wednesday morning a new national poll revealed that 54% of Americans rate the economy as 'poor', but instead of focusing oin that, Becky Quick quizzed Marco Rubio about his 'lack of bookkeeping skills,' Carl Quintanilla posed questions about homosexuality and fantasy football, and the astonishingly incompetent John Harwood expressed doubt about Donald Trump's 'moral authority.' The interaction between the candidates and the CNBC moderators revealed the yawning gap between the bubble world at the intersection of Washington and Wall Street and the hard scrabble reality of economic stagnation and political alienation on main street America.

Santelli & Hunt Warn About "Dire Consequences" Of Negative Rates

As more and more Fed speakers, talking heads, and status-quo-protectors talk of, beg for, and demand negative interest rates (NIRP), the mainstream is starting to wake up to the possibility of this farce coming to America. As Lacy Hunt tells Rick Santelli in the brief clip below, "the evidence is overwhelming that QE was more of a negative than positive," and warns the consequences of NIRP are dire (and The Fed has the tools to enginner it) as "to make it effective they would effectively have to call in the currency."

Bubble Finance And A Tale Of Two Spheres

We have argued that it is a perilous myth that central bankers these days control a general price level. They instead incentivize massive financial flows into securities markets and fashionable sectors. Over time, ramifications and consequences reach the profound. For one, excess liquidity promotes over/mal-investment. It’s only the scope and nature that remain in question. If major Bubble flows inundate new technology investment, the resulting surge in the supply of high-margin products engenders disinflationary pressures elsewhere. Policy responses to perceived heightened “deflation” risks then only work to exacerbate Bubbles, mounting imbalances and structural fragilities. This was a critical facet of “Roaring Twenties” analysis that was lost in time.

"Say A Little Prayer" Bill Gross Warns, "Zombie Corporations Now Roam The Real Economy"

Having exposed the reality that the world's capital markets are a manipulated shell game, Janus' Bill Gross has a message for the perpetual bulls in his latest letter to investors - "say a little prayer." Gross continues, "low interest rates are not the cure – they are part of the problem," warning that ZIRP has enabled, "a host of zombie and future zombie corporations now roam the real economy. Schumpeter’s 'creative destruction' – the supposed heart of capitalistic progress – has been neutered. The old remains in place, and new investment is stifled." As he previously warned, when the central bank manipulation is removed the likely trajectory of prices is downward...