Rick Santelli

Rick Santelli Summarizes The Problem: "It's The Government"

While the guests on Friday's CNBC closing bell were giddy with excitement about earnings, US stocks, and 'the recovery' being "a lot stronger than people give it credit for", Rick Santelli asked a simple question, if it's all so great why is the Fed still printing billions of dollars each month? A disquieted crowd of asset-gatherers attempted a response but made the mistake of uttering the most inflammable 7 words Santelli could hear... "Where would we be without the government?" What ensued is worth the price of admission...

Did Barron's Just Kill The American "Self-Sustaining Recovery" Dream?

The curse of the over-bearish (or over-bullish) magazine cover is well known. Of course, the media will only cherry-pick the "lows" as an indication that it's time to buy; as opposed to the exuberance-exhibiting article writers and their glaring headlines. To wit, this week's Barron's cover proclaims "GOOD NEWS - The US economy could grow this year at 4%... Forget the snow, consumers and businesses are ready to spend." Hhmm, it seems that Barron's forgot to look at the data...

Santelli Slams The "Self-Sustaining Recovery" Myth

One glimpse at the following chart and it's clear that the US economy has not reached the much-vaunted "escape velocity." As CNBC's Rick Santelli explains in this succinct summary of the quandary of GDP hopes, inventory-build fears, and extrapolation-dreams, "many of these programs, procedures, and plans offered by the Fed - or the government - actually work to jump-start the economy... but they can't reach sustainability." His simple analogy of the economy as a heart-rate in a chronically sick (if not dead) person and Fed juice as a defibrillator seems very fitting. As the chart below shows, the US economy is very much still on life-support.

USDJPY 102.00 Is The Line In The Sand

As Rick Santelli just noted, the JPY carry trade is the only thing that matters. It is the only fun-durr-mental factor that matters (implicitly or explicitly encouraged by the varying velocities of BoJ and Fed balance sheet flows). To that end, this morning has seen the crucial Abenomics make-it-or-break-it 102 level for USDJPY tested once again... and then instantly ramped (by Nomura we suspect by all market chatter accounts). We will wait for Europe's close to see reality.

"Fed Has Fingers & Thumbs On The Scales Of Finance," Grant Tells Santelli And It "Will End Badly"

In a mere 140 seconds, Jim Grant explains to an almost stunned into silence Rick Santelli how we all "live in a valuation hall of mirrors" as the Fed manipulates everything. Thanks to it's "fingers and thumbs on the scales of finance," Grant continues, the Fed "insists on saving us from 'everyday low prices'" - what they call deflation - and by doing so it manufactures "redundant credit" which "does mischief" in and out of markets. Grant, ominously concludes, "there is no suspense as to how [this will] end... [it will] end badly."

Santelli Slams Central Bank Policies: "The Market Is Rapidly Realizing That They Can't Go On Forever"

While the world's talking heads are desperately opening their global financial crisis fire-extinguishing mouths that this time is different, Rick Santelli takes 4 minutes to highlight the problems associated with liquidity that is always leveraged to the max and the problems that now await us. "For a while," Santelli calmly explains, the fairy-dust commercial planners (Central banks) "at least for a while, made everything seem like it could work." However, with "no excess margin in the system," emerging-market-cannonball-driven ripples in the global pool of liquidity are a major problem. Slamming those who argue 'taper is small' or 'Argentina doesn't matter'; the ever-increasing central-bank-inspired interconnectedness means "the market is realizing in a hurry," as we have warned numerous times, "these [central bank] programs can't go on forever,"

The Real Numbers Behind America's Phony Recovery

Today is the big day. Investors are on the edges of their seats, waiting to find out what the Fed will do. Taper? No taper? Or maybe it will taper on the tapering off? Investors don't seem worried... Most of the reports we read tell us the economy is improving. Unemployment is going down. Meanwhile, manufacturing levels are rising. Compared to Europe, the US is a powerhouse of growth and innovation, they say. Compared to emerging markets, it is a paragon of stability and confidence. But wait... What if all these things were delusions... statistical folderol... or outright lies? What if the true measures of the economy were feeble and disappointing? What if the US economy was only barely stumbling and staggering along? As Rick Santelli so uncomfortably asked, "What is Bernanke afraid of?"

Silver & Gold Surge On POMO; DeMark Tells Santelli "Big Move Coming"

Despite numerous "13s", infamous technical analyst Tom DeMark tells Rick Santelli, the Fed's liquidity pump has negated every one of these 'potential sell' signals and stocks have "unusually" kept going. DeMark goes on to note several analogs and trendlines that look extremely familiar; warning that the convergence of all these signals is notable and suggest "something comparable to 1929". Unable to get a word in edgeways, Santelli is more intrigued by DeMark's call on precious metals as he notes with downside limited, there is "a big move coming" for gold to the upside in 2014. Precious metals prices started to accelerate as POMO started (and again when it ended) and are extending the gains post DeMark (Silver +4% from early lows).

Santelli & Stockman Blast "Festering Fiscal" Budget Deal "Betrayal"

Former OMB director David Stockman rages to none other than Rick Santelli that the budget deal is a "betrayal and a joke" and "the final surrender of the House Republican leadership to beltway politics." The dismal reality - that little to no one in the mainstream media will dare utter - the budget adds $70 billion to spending this year and next year, and "then they're going to pretend to save it in '22 and '23." Stockman blasts, "they've not only kicked the can down the road, but kicked it into low-earth orbit." The only hope of getting our fiscal house in order was if House Republicans stand up, and Stockman warns "will trigger an enormous negative reaction from Tea-Party Republicans." The truth hurts...

Santelli Slams The Jobs Manipulation Scandal: "American Media, You Can Do Better"

Along with Zero Hedge and Jack Welch, CNBC's Rick Santelli was among the most vocal "jobs truther" in the run-up to last year's election - and suffered the same snark from the mainstream media at such conspiracy theories as to suggest the most important number in the world could be (or would be) manipulated. One year on, we now know the truth and as Santelli rages "if we knew then, what we know now," the world could be a very different place, as "all outcomes could have changed." Santelli raged at the time, "things just didn't feel right," and he was right, perhaps, as he concludes in the brief clip below, the American media "must do better."

The October 2012 Pre-Election Jobs Report Was Faked

On Friday October 5, 2012, the BLS released what was arguably the most important report of Obama's first term: the final jobs number, and unemployment rate before the November 2012 presidential election. As so many predicted, it "plunged" from 8.1% to 7.8% allowing the president to conduct countless teleprompted speeches praising the success of his economic recovery. It also served as the basis for the infamous Jack Welch tweet: "Unbelievable jobs numbers..these Chicago guys will do anything..can't debate so change numbers" and prompted the pro-Obama media to quickly brand all those who questioned it as conspiracy theorists...  Well, as it turns out over a year later, the conspiracy theorists were once again, spot on: the Bureau Of Lies And Subterfuge manipulated the most important jobs report in Obama's career.

4 Things To Ponder This Weekend

As we enter into the two final months of the year, it is also the beginning of the seasonally strong period for the stock market.  It has already been a phenomenal year for asset prices as the Federal Reserve's ongoing liquidity programs have seemingly trumped every potential headwind imaginable from Washington scandals, potential invasions, government shutdowns and threats of default.  This leaves us with four things to ponder this weekend revolving around a central question:  "Does the Fed's Q.E. programs actually work as intended and what are the potential consequences?"

Santelli Stunned As Nobel Winner Fama Explains Fed Unwind "Is No Big Deal"

If ever there was a few minutes of television to confirm the deep-seated disconnect between reality and the ivory-tower academics pulling the levers behind the curtain, CNBC's Rick Santelli just exposed it. For once, simple questions were enough to allow none other than Nobel-Prize-winning economist Eugene Fama to show Santelli (who did his best not to explode in incredulity) that the "smartest people in the room" just don't get it (just as they didn't get it in 2007). Santelli was gracious and polite as he asked what the great professor's thoughts were on QE... (and the entire brief clip is worth watching in its entirety) but his conclusion is perhaps the most stunning (and left Santelli almost silent)... when asked the impact of the Fed 'Tapering' or even selling down its $4 trillion in assets, Fama calmly says "it's basically a neutral event... It's No Big Deal!" Indeed, professor, that is so clear...