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Santelli's Paradox And Why The Fed's Exit Will Be "Very, Very Messy"
We are in our sixth year since the US officially went into recession and yet, as CNBC's Rick Santelli notes, we are still in crisis management mode. Some argue that any day now, the Fed will begin to remove its mega liquidity pipe from the market but Rick exclaims in this wonderfully succinct clip that: "there is no expiration date on faulty illogical ideas," as he expects any Fed exit to be "very, very messy." Rick's dilemma is the seemingly paradoxical need for yet moar and bigger monetary policy crisis management by Ben Bernanke when day-after-day we are told by the very guests on his network that "stocks look great." At the end of the day, when the Fed decides to exit, they will not be able to put the liquidity 'toothpaste' back in the tube.
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Yepperz. We have aging parents in the house and autistic kids.
We were screwed from the get-go.
:/
I know an elderly man that committed suicide last week: " I depleted his retirement over the last four years. I did everything right. What did I do to deserve this? I cant bear the thought of spending my days in a shelter. What will happen to my dog?"
Here's what he did wrong. He wasn't a banker. He wasn't the ilk that lives on the Upper East side of nyc. He believed in the system and the rule of law. These things are for suckers now.
I know a dude that did basically the same thing, except he did not OFF himself.
He is going to Fed prison for 20.(there is no parole)
He gave all his money and valuables away to his kids over like twenty years,(he is late 70's), he then went into a FDIC insured bank with an empty gun, and held the teller up, and on purpose dicked around till the LE showed,and there he stood bag full of useless FRN's,empty gun which he dropped before they shot him.
Caught red handed and sentenced.
In his mind HE won, he knew he would get free meals 3 hots and a bed, cable T.V. outside every day, free medical for the rest of his life.
He beat the system after he lived a great life as he wished it to be.
You just explained how I'm going to fund my retirement, thank you so much!
Nice story. Please provide a link. Lots of smoke blowing in here.
I'm a volunteer fireman and went to a similar call last week 410 to chest, dog got one too. RIP
I have a feeling, just like in Greece and Spain, suicides are going to go up. A LOT! I look at my own life and do not have much to look forward to. I have a very small amount of money in a 401K, and I do not have the means currently to add to it. Doubt I'll see a dime from Social Security. Highly unlikely I will even finish this year with a job. And if I do still have a job, it's likely I will have to work until I drop. There is a guy there now that is over 80 years old and still works.
Not much to look forward to. If I lose the job, finding another will be extremely difficult. 51 years old, healthy but extremely hard-of-hearing. I was out of work in 2009, and it took 11 months to get the job I have now. No other interviews or anything. And now it's even worse.
I am separated from my wife, and have nowhere to go once the bucks stop coming in. At this point in time, have no idea what I am going to do whould this occur, except join the above.
Do us a favor and hang in there, and find a way to be happy. We'll need you before this is over. Every single one of us.
What? You'd like I move under the I-40 overpass and inhabit a cardboard box? I think not. That is entirely too much austerity for this cat.
I've been there, done that. Not the best accomodations, but drink enough wine & anythings bearable, maybe even enjoyable.
I wear contact lenses and a hearing aid. Not much accomodation for that in a cardboard box. I also have a full compliment of workout equipment that I use daily. No room for that in a sears box. Sorry, no convincing me otherwise.
My friend, and I do mean that in a brotherly way, we all have to re-invent a way of life in America that is outside the current "system" and that pulls resources FROM the system (in our direction) in order to establish a real life, a real living. I know it is hard to consider it. But most of the time the difficulty is that we got used to doing things a certain way, and that way is now a dead end. At the least you SEE the dead end. That gives you an opportunity to start making a new way NOW, before you are forced to do so in such as way that is far more traumatic.
Its time to put our thinking caps on. We are not victims. We are Americans.
Good grief, 51 isn't old. And needing a hearing aid is the sort of thing that looms large to the person who has it, but is totally irrelevant to any outside observer. My husband is 52 and I have to repeat everything I say to him, and he claims I'm deaf at age 49. And I can't believe that you even mention the contact lenses; who doesn't wear glasses or contact lenses???
51 and healthy means that you could easily live another 30-35 years, and even if the next few are subpar, there's plenty of reason to think that things can get better. If you managed to find a job, as you have, in this economy, then you're doing very well.
I know loads of people who have killed themselves. In every case, it made no sense to anyone else. Their lives were clearly worth living, and you've said nothing that makes it sound like yours isn't. Being separated from your wife is truly horrible, but there are other women in the world. Just be patient.
Being a hobo is not as horrible as you might think, or at any rate it's a hell of a lot better than killing yourself. Have you ever read any Eric Hoffer? Or listened to Burl Ives? Both brilliant onetime hobos. I fear that a lot of people are going to end up in that situation, just like in the last depression, and so it's important to prepare for it psychologically. But I wouldn't be surprised, given that you did find a job this past time around, if you continue to manage to be employed. BTW you can definitely live in a box and wear glasses, if not contact lenses; most people I know who are homeless wear glasses.
If it comes to it, it really is no crime to attend a church service or two or three. No-one will bite you. If it means social contact and psychic survival, it's a very good thing.
Baloney
all the debt expires
It's like being in one of the planes on 9/11 and laughing at the guys (FED)with the box cutters. "What a bunch of idiots! It's obvious they have no clue how to land a plane!"
They wheel out Santelli to appeal to the disgruntled demographic. It's the one time each day trading floors turn up the sound. All the traders watch and yell out, "You tell 'em, Rick!" Soon they'll be putting him in blackface and he'll sing "Mammy", in a direct admission that it's just entertainment.
When he's done the desks go back to buying AMZN and 5-years that yield 89 pips. Gotta keep the job, despite what any of them personally think. There will be no reward for anyone not all-in when the thing finally blows, but there IS a price to pay if one sits with a rational position as the market is running up into the ether. Thus, they buy.
I agree. They sip martinis and marvel over his fulminations and a completely oblivious public, and toast a complicit Department of Justice.
I'm surprised Rick hasn't already fallen down an open elevator shaft or shot himself in the head a few times.
SP500 hourly since January 1.
http://bullandbearmash.com/chart/sp500-hourly-moves-sideways-today-closes/
What a damn fucking mess. Santelli is right. The only thing Santelli didn't say was, "America, we are totally fucked".
you gotta wonder why Rick's saying these types of things.
the fed exit ? mwahahahahah yeah sure, one of those days somewhere around 23rd century i guess
Of all the humorous concepts, such as the Fed caring 2 shits about employment, or being worried about price stability, is the notion that the Fed somehow cares about the consequences of its current ZIRP policies and its "exit". If you haven't guessed by now, and are playing along at home, let me fill you in: they don't give 2 shits about that either.
Now that we've cleared away that dither, we can start to guess what the Fed really cares about, based on its policies that don't achieve any of its phony, but nonetheless publicly stated goals.
Hint: who owns the Fed?
It is the EXIT of buyers of US debt that I worry about. Japan is not in big trade surplus. China is acting like the China sea is TIBET and this is 60 years ago, (China bullies the Philippines and Vietnam with outrageous claims on nearby islands , oil, fish & coral...AND threatens to exchange gunfire with Japan over other islands)...China feels bold that it has no modern chinese trade relations that might be sanctioned.....and maybe China is right while Obama, Congress and Bernanke feel a recession must be avoided at all costs.
http://www.zirpinusa.com/
The reset is coming and it is planned. It will make the elites richer and more powerful - warfare and reduction of the welfare classes is part of the plan. It will be choreograped to appear caused by Iran/Israel or Syria/Russia so that the MSM will not blame the elite. No doubt it will be 'religious fundamentalists' that will be at fault. Declining US rates have dovetailed with rising debt - until now - rising rates along with increasing debts will be the final straw for this massive debt ponzi scheme. The reset is close and any number of catalysts could start the process that will be extremely rapid.