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Rick Santelli Rages: "What Is Bernanke So Afraid Of?"
The following three minutes of absolute perfection uttered by CNBC's Rick Santelli is dangerous for anyone living in Kyle Bass' "intellectually dishonest" alter-world of denial and "unicorns and rainbows" as the Chicagoan goes off on the ignorance of everyone in these so-called markets. When every talking head is bullish and the world is going so great that we should all "buy stocks," Santelli demands we ask Bernanke - "what are you scared of," that keeps you pumping this much money into the system for this long? Simply put, Santelli's epic rant is the filter that every investor (or member of the public) should be viewing financial media and the Fed today (or in fact every day).
On CNBC and all the channels that cover business, we have person after person after person, buy side, sell side, upside, downside:
- How is the economy? Economy is great.
- What about stocks? You got to buy them.
- What if they break? You have to buy the dips.
- What's wrong with the economy? I don't hear these people saying anything is wrong with the economy.
So what's wrong, Ben? Why can't we get out of crisis management mode?
There's always going to be something.
...
Why don't these people kick the tires?
They take a press release from the Federal Reserve and they think it was written by God.
One of Rick's most epic rants to date:
And perhaps clarifying some of the issues Rick brings up, here are the pertinent thoughts from the most recent Sth Klarman letter:
Is it possible that the average citizen understands our country's fiscal situation better than many of our politicians or prominent economists?
Most people seem to viscerally recognize that the absence of an immediate crisis does not mean we will not eventually face one. They are wary of believing promises by those who failed to predict previous crises in housing and in highly leveraged financial institutions.
They regard with skepticism those who don't accept that we have a debt problem, or insist that inflation will remain under control. (Indeed, they know inflation is not well under control, for they know how far the purchasing power of a dollar has dropped when they go to the supermarket or service station.)
They are pretty sure they are not getting reasonable value from the taxes they pay.
When an economist tells them that growing the nation's debt over the past 12 years from $6 trillion to $16 trillion is not a problem, and that doubling it again will still not be a problem, this simply does not compute. They know the trajectory we are on.
When politicians claim that this tax increase or that spending cut will generate trillions over the next decade, they are properly skeptical over whether anyone can truly know what will happen next year, let alone a decade or more from now.
They are wary of grand bargains that kick in years down the road, knowing that the failure to make hard decisions is how we got into today's mess. They remember that one of the basic principles of economics is scarcity, which is a powerful force in their own lives.
They know that a society's wealth is not unlimited, and that if the economy is so fragile that the government cannot allow failure, then we are indeed close to collapse. For if you must rescue everything, then ultimately you will be able to rescue nothing.
They also know that the only reason paper money, backed not by anything tangible but only a promise, has any value at all is because it is scarce. With all the printing, the credibility of our entire trust-based monetary system will be increasingly called into question.
And when you tell the populace that we can all enjoy a free lunch of extremely low interest rates, massive Fed purchases of mounting treasury issuance, trillions of dollars of expansion in the Fed's balance sheet, and huge deficits far into the future, they are highly skeptical not because they know precisely what will happen but because they are sure that no one else--even, or perhaps especially, the policymakers—does either.
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There seems to be some spine left in santelli. I like this guy.
dang santelli is a crazy badass. love dis guy
WOW, just WOW. I'd love to see Santelli interview Obama...
Santelli is going to see his home and business computers mysteriously turning on by themselves a lot over the next few days.
That. Was. Awesome.
When is his scheduled accident supposed to occur?
Saw a "Go Rick Santelli" a while ago at the "Audit the IRS" rally. GO RICK!
Bag < Cat
Epic Santelli.
No doubt he will be audited after THAT outburst.
.....or droned.
FUCK YOU BERNANKE!
economy is good? really? full market cycle just about complete and we cant post +3.5% gdp for more than 2 quarters (back in 2010)...while the largest, loosest over the top monetary policy ever attempted happened in ever larger doses and is at its peak right now, while the total number of employed persons is 2 million LESS than it was May 2007? 6 years ago! and dont give me that bs about people retiring, that age group has MORE employed today than 6 years ago...they are not retiring at the old end and we still have people coming in on the young end.
the theme out there is 'stocks are 'safer' than bonds'. a horrible, worst month in years in bonds is -5% on the AGG. how much down would a horrilbe, worst month in years be in stocks?
as santelli sums it up "unbelieveable!"
Mr. Santelli,
Love when you point out the obvious that others dont dare touch with a 10 foot teleprompter.
Thank you, truth is refreshing, look, we all know from day 1, September 2008, bailouts are 1 of 2 things.
1. covering criminal activity.
2. bail out = buy out as to load Corps down with hot cash as to rehypothecation and repo agreements till the fat lady sings..
CNBC dosen't deserve your service.
-JP
Sorry guys, so many of you misunderstand. Bernanke's buying program has nothing to do with stimulating the economy. That is the kool aid. What the fed is doing is they are buying up assets with benny-bucks, so they and all their bankster buddies can own us all. Ricks question is stupid, or contrived. What Benny should be afraid of ( as far out as I think this may be ) is the wrath of mobs figuring out his game.
Exactly, which is why the FED now claims to tie QE to employment. The message there is that this privately owned banking cabal called the FED has your back if you lose your job. Pure 100% bullshit lie.
Nah, Rick gets it, he is just trying to get people to ask the question, instead of spelling it out for people (when you spell it out for people they generally think you have an agenda, and will resist, through cognitive dissonance)
The Great Santelli asks (and knows the answer) "Where did we go off the rails?"
Over about 50 years, we went from a free market economy to a centrally planned one, that's where.
You are now witnessing the end game of that movement.
"Where did we go off the rails?"
Jekyll Island
When?
1913
I LOVE that man!
Thanks Santelli, a most excellent, justified and deserved rant!
he makes all others look like shills except maybe art cashin
Santelli is disengenous. He is there to pander to all the people that REALLY feel angry, like me. I am fricking pissed.
Here's Santelli's answer: the market will crash without qe. period.
Like Japan, the free market may never come back in your lifetime.
gs wins. we lose. seniors lose. freedom? no more. people are afraid of the future. some fucking bastard banker is buying his kid a bmw for grad today. bernanke destroyed my retirement so that could happen. i hope thay all drop dead.
"Spur under my saddle"???
A nice way to say "this thing poking me in the ass", thumbtack on a chair, etc.
No, it's "burr under my saddle", means a little stickery weed seed, makes the horse irritated and likely to unhorse the rider...
I was hoping he was going to mention Liesman when he threw out the name Hilsenrath.
http://therightscoop.com/livestream-watch-the-audit-the-irs-rally-beginn...
Fucking A way to go Rick, shine the light on the bastards!
They are afraid to make the rich people poorer because rich own the stocks, companies, boards, funds, bonds, yachts, art, wine, diamonds.....Everything....
Ask yourself: Who holds most of stock, bonds and everything tradeable? Of course, the answer is : The Rich!
Who will buy stuff if prices decline and there is no income? We need to make poor people get into middle class, some of middle class into rich, and rich into richer. If this process reverses, which it has, then someone (The Fed) has to step in, which it has, to ensure prices remain upwards and/or stable.
This is like cocaine now, they cannot get off it, if they get off, they are doomed and if they don't get off, they are doomed!
So, pedal on......16 trillion dollar debt...that's so 2012......:)
Well yeah, if there's anything we need, it's less rich people!
/s
To have less rich people is ideal so that we can split the spoils among more people, however, first, we need to get the stock market down! :)
With money printing, it may be a bit difficult and working in the opposite direction, because the 'value' of any stock 10 years ago versus today has to be measured in the 'value' of money also, not just in absolute/nominal growth of any stock. Value of a Citibank stock 10 years ago could have been USD 10 and if it is USD 20 today, it includes inflation as well as 'value of money' due to more money supply. This may keep the stock market afloat and rise in nominal terms, which is acceptable but allowing companies to be hijacked with access to zero interest (when we cannot have access to zero rates) or letting them settle insurance settlements when they clearly cannot or allowing people to use segregated funds when it is illegal for everyone else, is not fair and makes a mockery of everything the US and other countries stand for: Justice, Fairness and Equality, of which we have neither. Sad, indeed.
Newsflash, the richest get richer by taking from the poorest.
So the rich can't get richer at the same time that poor get into the middle class. Sorry.
True that...however, it has to always remain like a pyramid...which it has for centuries.....though you are right that rich cannot get richer at the same time as poor get into middle class, which is a oxymoron, but the thing is that it should not get out of control, which it has, for the last several years and the formula is not working the way it has for centuries, since an artificial money creation is on, which is what is making rich richer when the poor are getting poorer, which is what you mean. I agree it is not right because there is artificial money creation instead of real growth and real money creation.
Fixed for ya -- Newsflash, the financial sector's richest get richer by taking from the poorest.
So the rich financial sector can't get richer at the same time that poor get into the middle class.
The problem is that the financial sector should only be about 1% of the economy. Our problem is that the financial sector has become a weapon of mass destruction that is about to wipe out all other sectors and bring us back to the Dark Ages.
the bastards pinch the stream, they do it with Fox on my cableTV too
Santelli better watch himself or he will end up like Jimmy Hoffa. But...go on my son!!!
I pity the fool who'll be BB's successor.
Would pay to watch Santelli beat Liesman to death with a baseball bat
Finally a MTV Celebrity Deathmatch worthwhile watching.
I'd like to donate the bat: Bat for Rick
You want to see this ecomony get on balance and counry back to a model of capitalism? Make Rick Santelli the next Chairman of the Federal Reserve!
Whoops, I forgot that is non-governmental decision by the fed governors and the the President gets the honor of being their lap dog and "appointing" the person on their behalf. :(
Oh well, great rant Rick!
It's hard to argue FACTS. Santelli knows the financial markets; I suspect we can atleast agree on that regardless if your a bull/bear/pig.
Let's not be quick to forget our past chairman AG, exiting exactly when he knew our financial system had global systemic risk (and now it's beyond levels I can begin to comprehend) that carried epic consequences which we are now starting "deal" with.
Over my past decade of trading, I've been a bull, bear, and neutral.. but never at any point, have I had this much concern for the stability of monetary and fiscal policy. We would all be fools to think this wouldnt translate into politically instability. Our intergrity is as nation is collapsing.
FACT: Our country was so critical of China and their data manipulation and spying... all while we do that same damn thing..
FACT: We initially warned Japan about currency devaluation while we employed the same policy.
I could go on and on, but I am one of the few that still has a corporate job.. Ugh back to the grind. Someone has to keep paying taxes to ensure the bums I walk by everyday can purchase alcohol with our money.
Happy Trading!
"Let's not be quick to forget our past chairman AG, exiting exactly when he knew our financial system had global systemic risk"
Yep, when they choose to bail, you know the feces are about to hit the motorized air mover.
EPIC RANT!
Why is he so angry? Why am I so angry?
Because the FED has debased the value of my life: my labor, my responsibility, my contributions to the society.
The FED has spit in the face of every young person, every Mom and Dad, every Retiree who got up and went to work each day and paid their bills and taxes for years, decades, half a century.
The FED has punished the responsibility of generations while rewarding the skullduggery of a few.
DISGUSTING!
If you saved $1m over your career, Bernanke is stealing at least what, $40,000 from you, annually?
It doesn't even take that much to hurt. David Stockman estimates that over the past five years US savers have experienced $500B in lost interest every year due to artificially low interest rates. This is, as he correctly points out, a huge transfer of wealth that no one voted for.
What the Fed (and the mobsters it is composed of and serves) has done, is a crime of such unprecedented proportion that the world doesn't understand it and, thus, can not--yet--conjur a consequence sufficient in severity.
These people haved fucked the entire population of the planet--save themselves and their friends; I can imagine nothing less than skinning them alive as sufficient, to be followed up with allowing them to heal and repeating the process ad infinutum--just like the QE (stolen from those victims you mention, EB) that has been deposited in their banks accounts.
My main man, AND THE ONLY MAN ON USA FINANCE tv stations, asks the correct question:
So what's wrong, Ben? Why can't we get out of crisis management mode?
I think the answer is southern Europe bond rates will explode. Daddy Bernanke is actually THE FED for the world...all the world bankers!
Just like The Dictator, and most of Congress, it is all about legacy. They all want to look like intelligent, forthright and honest leaders. None will ever admit to a mistake and will always blame things on someone or something else. As the name of Caesar is still known today, 2000 years past, so do these bums want to be remembered in 4013. You have the blind and clueless leading the wise and knowing. Who knows best how this country functions and what needs to be done to fix it? The everyday people in the trenches, not the empty suits in Washington, that's who.
"They all want to look like intelligent, forthright and honest leaders."
And they build $250 million libraries to "prove" it, like GWB just did, the money to build it obtained via donations from the cronies he benefited while in office with maintenance costs that will be paid by US taxpayers. I visited it and found that it only contained 50 million copies of "The Pet Goat" (often erroneously called "My Pet Goat").
I just wanna grab a tamborine and start dancing behind Santelli while shouting hallelujah at the top of my lungs.
Weather Benzo leaves soon or not it will come back on him,regardless,you can't polish a turd now or later.Santelli,rageing ginzo.
I think he's afraid the system collapses....again.......under his watch, which will tarnish his "legacy".
That's why he'll uber-print til he leaves.....that way, when they "taper" (they'll never stop) and the market uber-plunges, he can say, "Hey, not under *my* watch!"
Greenspan maybe the worst central banker in the history of central bankers.....but in the mainstream, he gets ballwashed frequently because.......he made alot of his friends a shit ton of money. Ditto with Bernanke.
The only way people start pointing their anger toward the Fed is if *those* people start to lose money.....because sadly our society looks up to them, instead of looking down (while haucking a loogie).
Ben will be replaced by Janet Yellen. Nothing will change. Maybe though, a Jewish woman will do a better job then all the Jewish men who have headed the Fed.
http://en.wikipedia.org/wiki/Janet_Yellen
"FORMER FED GOVERNOR: Obama 'Basically Fired Ben Bernanke On The Spot' "
Read more: http://www.businessinsider.com/larry-meyers-says-obama-fired-bernanke-2013-6#ixzz2WgN6ieqK
From NY.
Went to Harvard.
Need I go on?
Is there a law that says that only a Jew can be the head of the Federal Reserve?
Seems that way. Why only Jews? Why not a Mexican American? Or a Chinese American? How about an African American? How about an Eskimo American? When it is only Jews who run the Fed, the Treasury department and Wall Street, it cannot be denied that they control our government and our finacial system. Somebody needs to tell Santelli, though, so that he can calm down.
you have to view Yellen as a cosmetic change. the pattern suggests he likes white makes in important positions, but he likes to appoint women and blacks to lesser posts, which is consistent with what W Bush did when he made the Fed a cabinet position, under Treasury. so I don't understand Santelli in this respect, the Fed has lost all independence, and so the financial community now hangs on their every word?
santelli is by far the best on any financial television station.
the guy deserves a fucking raise. i know he wont get one, he will more likely get a salary decrease or fired because he tells it like it is, but this man deserves some fucking raise.
without santelli, i would never dare turn cnbc on, and id be angrier than i am now.
thankgod u exist rick, please continue speaking the truth,because no one else will do so.
It's about protecting the franchise that underpins everything, all their power, all the NSA surveillance, all the wars, the opulent lifestyle that minions like Obama are living - EVERYTHING. The PAPER Dollar. Its foundation is deception, that is why the stock market - in fact ALL appearances - are so important - to keep the illusion and the deception going.
Excellent job Rick!
bernanke has been pretty clear, the mistake of the 1937 Fed was raising rates too soon. he's also on record that the BOJ wasn't aggressive (accomodative) enough during the lost decade. no one can be sure how much this is his own policy, or obama wants him to make employment a touchstone (and the middle class the focus of Fed policy)
point of cognitive disconnect is this, bernanke says, i see all you little people suffering i better give the tbtf banks more money. his doctoral thesis are just boilerplate (along with his inflation targets) in order to monetize government spending and preserve the encumbency. bernanke is a weak sister, kicked around by the politicians, now obama wants to blame him for the wealth disparity gap because it has become a political liability. there's no way the obama fed, or any other fed chairman is going to exit the new centrally planned economy. such things once started never end unless they end in collapse, like the fascists before them.
when the soviets collapsed they ended up with a free market and gangster capitalism. would you want to run the russian economy with putin looking over your shoulder? bernanke should be glad to get out now.
Me and the traders behind him loved it when he grabbed up the trash can.
It was a symbol- time for real action, time to break something, time to kick someone in the nutz.
Refreshing honesty, that. I'm surprised he got on tv.
5 straight years of total crisis mode and everyone depending on Bernank and his magical money machine while declaring how great everything is....STOP IT NOW!!
ENOUGH!!
P.S.- FUK U TOO SIMON!
That had to be one of the better "Santelli's" I have seen.
The only thing he didn't say was "fuck you bernanke".
Santelli is a Simple Sensationalist and nothing more than a Cog in the MSM Machine.
Someone has to pay the bills on that fucked up show because it sure isn't going to be Lies-man or any of those other CNBC Turds.
the league is probably going to give him a fine, for kicking dirt on Bernankes shoes
Great Take...you know they are great when everyone in the room either stops and listens or leaves....like the Ratigan epic take in 2011
Subject: the real reasons for qe, loose monetary policy, asset purchases
Because Ben is really just a hedge fund manager who knows if he stops buying bonds the market will collapse on him as there are no real money buyers. I can not find a single investor that would lock into 3.35% for 30 years if they had to own the securities for the entire thirty years. It is a liquidity shell game at these rates.
Right on Santelli,
Wish more media had the balls to admit what we all see.
It is called Rise and Fall of nations for a good reason. The US is no exception.
THANK GOD FOR RICK SANTELLI!!!!!!
Anyone know where I can buy a "Santelli is God" t-shirt?
Rick Igottatellye caught in rare form. He is kept there at cnbc as stress relief for the policy critics that still tune in. No emotional argument of his is gonna get traction, they will just be pointed to for fair and balanced reporting
YEAH!...Kick sum booty RICK!!
I'm with you my man
NSA is calling his number next?
I like Rick's question, "What are you afraid of?", but even more germane is why does anyone listen to Bernanke when he's going to run (or get kicked) out the door before the "heavy lifting" of raising interest rates is completed. What a douchebag he is, and what "tools" we all are for putting up with him in a deferential way.
that twit simon is still on the air?
Because he IS a twit. CNBC likes twits.
CNBC: Twits and Whores R Us
Yeah i thought Ben looked and acted VERY nervous..
Way to go Rick! Awesome rant and rave!