Rick Santelli Asks The Only Question That Matters

Tyler Durden's picture

Commenting on the divergence between the bond market's Taper-On reaction and the equity markets Taper-off reaction amid the total lack of clarity from the FOMC, CNBC's Rick Santelli asks the (rhetorical) question that everyone should ask: "[What the Fed minutes said] is, listen, we have to wait for bigger confirmation that the economy is doing better; and for that, we're going to look at the employment side. [At the same time] we have the fewest people working that can work in 30 years, and all-time-record-high profits for corporations. Now, does that strategy sound rational to you?" It seems, now that Bernanke has seemingly promised that it will really never end, that Santelli's question will become increasingly critical in this country.



The mini-rant that should be reflected upon by everyone (investor or not) starts at around 0:45 in the following clip...



How does this end?

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Stuart's picture

Rick Santelli is probably the only good reason to tune into CNBC and then only when he's on.  The rest of the time it's just a shill, a storefront for the corrupt.  Little wonder the ratings are taking.  People are finally waking up to this. 

nope-1004's picture

What percentage of "corporate" is the financial sector?  I bet a very large percentage.  They've skimmed and sucked off of the common man for decades.


DaveyJones's picture


luckily politics and campaigns are not a big money game, so the money doesn't influence them

Herd Redirection Committee's picture

DJ, there's kids that surf this site.  Remember your /s tags!

kaiserhoff's picture

You're German spelling is worse than my English spelling, if such a thing is possible..., which it isn't.

Never mind;)

Divided States of America's picture

Why the sudden turnabout in face from the ass reaming q a he took a week or two ago? That's because he saw the market reaction to his tapering comments. Well too fuckin late asshole, the Credit space has already been broken beyond repair. Look at the ten year yields after bernanke said the most dovish thing he could say and its still at  2.6+%. His speeches are having less and less effect. Me thiNks that he is hoping to spark a huge final rally in equities to inform his buds to offload their holdings because he has lost control of the experiment.





kaiserhoff's picture

With all due respect to Santelli, who is a rare voice of reason, the question is,

can the big banks come off of life support, and quit stealing everyone's interest income?

The answer is no.  They are still broke. QE ends when Ben has no other choice, which might be soon.

NotApplicable's picture

QE ends the day the banking system collapses, and not an instant before.

James_Cole's picture

As long as currencies exist some form of QE will go along with it. As long as governments exist currencies will exist, so probably going to be a while before QE ends.

ACP's picture

Pretty much as long as there's enough money to push up stocks, and push down oil and gold, QE will go on.

When a correction is warranted, allow the SPX to correct 5%, and slam down oil/gold 10%, rinse and repeat. The illusion of no inflation.

It will only stop when the wealthy have stopped working completely due to all their stock gains and the middle class/poor have stopped working because there aren't enough high-paying jobs to be worth staying off welfare. Pretty much the way we're heading. When is 100% tax revenue going to come from capital gains on stocks? Sooner than later.

There's absolutely no way to turn back from more and more QE, and more QE there is, the bigger the final collapse will be. It's all a BS ruse...the printing can only increase.

eclectic syncretist's picture

Those corporate books are so frickin' cooked the stench can probably be smelled in outer space.  The truth about corporate profits always comes out after the smash.

Shizzmoney's picture


It will only stop when the wealthy have stopped working completely due to all their stock gains and the middle class/poor have stopped working because there aren't enough high-paying jobs to be worth staying off welfare

When we get to this point....there won't be any welfare left.

Every man for themselves.  I kinda of look forward to it........the opportunity of fighting that skinny brown noser Andrew Ross Sorkin over a deer so I can have Vennison that night is going to be pretty sweet.

"The elites" are only "elite" because we refer to them as such.  They're not.  They are, as Chris Hedges put it, "the most inept class of all".

DaveyJones's picture

I vote for this one. These are criminals we are talking about. They will get bolder, more desperate, and more destructive until it blows. History bears this out too. They have taken this path and will ride it. Inflation also benefits the wealthy, until the bitter end that is. I just hope some good old fashioned legal justice is dished out. There is going to be a lot of hungry, angry people.

kchrisc's picture

The other day I came across a quote in a book that quoted someone else to the effect that at the end all they, the criminal elites, have is deceit and force. (paraphrased)

The book was "Empire of Illusion" by Chris Hedges. He is an avowed socialist, but his insight and writing on what ails the American people is spot on. Sort of funny reading that he recommends more government to sove the problems that big government in collusion with big business have created. But overall, great stuff.

The Navigator's picture

QE ends the day the banking system collapses, and not an instant before.

Bravo N/A, you nailed it. 'the DAY cometh'

As a Post Script (PS) - What a great opportunity to stack (stock) up on Au Ag at 1260 and 19.50

Semper Paratus

fourchan's picture

they cant stop printing, and who cares they have already destroyed the markets and the dollar.

Shizzmoney's picture


What percentage of "corporate" is the financial sector?

This is largely a blurred line.

Now, yes....financials have always took in a large percentage of the corporate profits (especially after the end of Bretton Woods)......their percentage as a part of GDP is undeniable......and I'd almost say on this chart, 50-60% of the profits are from that sector.

However, in this new world of ZIRP, QE4EVA, tax breaks, elimination of Glass-Steagall, as well as the legalization of outright fraud (if Worthington's Law smiles upon you)......they are various avenues for financials to make money.  And in a non-transparent way.  That's where corporations come in.

Corporations need capital to do the shit they do: pay bills, research and development, labor, and most importantly.......executive compensation.  They mostly do this through debt......ZH has posted great charts about the large growth of corporate debt (minus the banks, like JPMorgan's derivitives being 70x's that of GDP) especially since 2007. 

The thing is, jobs aren't really being created, those that do.....their wages suck.  But CEOs are doing better than ever.  Shareholders are making a killing.  Executives and Management are living the high life. 

All this, in spite of an age of declining sales, stagnant to declining wages, the elimination of benefits and pensions (although 401ks still exist.....again adding to the profits of the financials)....how the fuck is this happening?

Stock Buybacks.

Thanks to ZIRP, corporations and their CFOs and those on the board can virtually speculate and manipulate the health of their companies while at the same time taking skim off the top.  Think the Q2 earning report will be bad and lead to sell offs?  Buyback some stock.  Need a quick 50k to finance that 2nd home?  Buyback some stock.  Want to calm impatient shareholders? Buyback some stock (and then sell it when your central bank of choice artifically inflates the market for you, despite fundamentals!  Mo money, mo money, mo money!).

Hell, you can even use those stock buybacks to buy up smaller companies, as it doesn't really matter how much shit you sell as it does how much cash you stash in this ZIRP era in order to main (the appearance) of balance sheet liquidity.....then you can use that to get some MORE corporate bond refinancing debt (from your TBTF bank of choice, who takes their cut as well as buybacks as well). Then take that newly minted debt to buy up your competitors.  Hell, then you can even LAY OFF the employees at the company you just bought, and eat that cash yourself!  What a steal!  Mo money, Mo money, Mo money!

The idea of ZIRP was to get corporations to spend again.....and they have....just not on the economy.

The Navigator's picture

For a visual of the TOTAL market (and ups/downs each day [red/green]) see


Financials are a significant part but not overly.

BUT, when it comes to derivatives, that's a horse of a different colour.

PiratePawpaw's picture

+1 for words out of my mouth..... "not well"

asteroids's picture

That does it. The Chairsatan is  insane. He refuses to acknowledge basic demographics. Under the current way of measuring things unemployment may never get to his target. His money printing will make things worse and the employment rate will continue to fall. After 4 years of failure, he'll keep on course. Someone has to stop the lunatic. I hope the bond market will.

zipit's picture

I think we are all on the same page, there.  The question is exactly WHEN?  :)

BandGap's picture

I don't listen to anybody else and when I think about it I touch myuself.

Where's Biderman?

Everybodys All American's picture

They can print all day and everyday for years and years but they can't change the fact that the US gdp is getting worse every year and the debt is getting larger. This will end with Bernanke running from a mob.

Buck Johnson's picture

I know, Santelli's the only one to turn to.

LongBallsShortBrains's picture

The commercials are the other reason.

If you watch long enough, a new advertiser will appear, never before on the network. Then the CEO is on Cramer. Sell it

I remember Enron..... Oh the commercials.

Ban KKiller's picture

The new "normal"...totally displaced equity disguised as profit. There are no reliable business records. Confidence in what, exactly? 21 member banks will not lend to the "public" when they can buy stocks and buy stocks and buy stocks and...until?

TruthInSunshine's picture

The big news that everyone (as far I know) is NOT talking about is that in a world where flow is far more important than stock, and the may even render stock irrelevant - when viewed from that perspective - Bernanke's comments and the FOMC minutes were actually highly hawkish, since increasing the flow is not only not on the table, but there's actually (based on the actual FOMC minutes, rather than Bernanke's post-mortem "remain highly accomodative" blah blah session) a consensus view forming whereby reducing their balance sheet (through holding to maturation) is the predominate view.

I can't wait to see Hilsenramp explain how everything I just stated is actually polar wrong, however.

OneTinSoldier66's picture

"a consensus view forming whereby reducing their balance sheet (through holding to maturation)..."


In other words, there is no exit strategy. We are currently viewing/witnessing/living... the exit strategy.

TruthInSunshine's picture

Many don't want to accept it or have a visceral rejection of it out of some innate desire to see the world behave more "normally," but at this point, the static monthly amount of treassuries and MBS the Fed is buying would have to rise significantly to have the same impetus that QE had in prior periods.

Bernanke has created a bad situation, amongst other reasons, because he can't do what Kuroda has (which hasn't/isn't achieving the BoJ's stated/claimed policy goal, by the way), and announce a proposed doubling of the monetary base in 12 to 24 months.

Bernanke, if viewing the situation he finds himself in rationally, knows the best outcome of what he has sown is for there to be literal stagnation of equity markets, a very tight range on interest rates on sovereign and other bonds & a slow unwind of excessive leverage in other markets he has reflated (e.g. real estate).

He knows he has helped to reflate massive bubbles, yet is hoping they neither rise further nor implode - at least on his watch.

The blah blah blah from Federal Reserve officials and their media plants in the weeks and months that follow will be massive in volume and contradictory in tone.

On top of all of this, despite periodic, brief respites, interest rates will continue to claw their way higher and higher, since the real market has already called Bernanke's bluff.

JustObserving's picture

Santelli's question will become increasingly critical in this country

Since when did our leaders give a damn about what their citizens think?  If they did, there would be no war in Iraq, no bailout of the banks, no Patriot act, no NDAA, no comprehensive surveillance, and certainly not 30,000 drones to monitor us.  We are a fascist state masquerading as a democracy.  Keep on singing "land of the free" - that's the closest you will get to freedom.

SheepDog-One's picture

Land of the Fee, home of the Slave....that's all.

prains's picture

we also make room for the naive

eclectic syncretist's picture

Swipe your card, get your money swiped.  "Convenience fees" bitchez!

PiratePawpaw's picture

.......until you are ready to stand up and risk all.

most arent.


Al Gorerhythm's picture

Checks and balances?!!!! Are you fucken mad, you goddamned idiot? You have to be a complete dolt to believe that the government should take note of the people. You must be a fringe dweller. Laughable (according to FOX)


NotApplicable's picture

Since when have these tools of the elite been "our leaders?"

BTW, "we" aren't anything, as "we" don't exist except as an abstraction in your mind.

This should be painfully obvious to anyone who read this morning's headline about "The US shipping F-16s to Egypt." Who is that, exactly?

Maybe I should change my name to Egypt, and get to the front of the line?

Element's picture

Cover all your bases, try Joseph Abraham-Mustafa Gyposternberg. ;)

LongBallsShortBrains's picture

"land of the free"????

I thought the tune to sing is

"beasts of England".

ISEEIT's picture

This country.


Got it.

buzzsaw99's picture

and here i thought i was the only one who noticed

BullyBearish's picture

This $hit is really getting old...

Cdad's picture

And, of course, the entirely imagination free Maria Bartiromo chimes in with "[unemployment] has persisted for years now" and then just moves on to her softball question to some sell side douche bag to chant "rally rally rally."

I think I'll be looking for short entries on COMCAST between now and Friday...as I don't believe for one minute that these share prices can remain elevated...as this network absolutely collapses in terms of content, ratings, and credibility.  Whether we are talking about The BlowHorn [CNBC], MSNBC and its fascism/Obama loving brand, or the king daddy NBC...if that part of the network even broadcasts anymore.

buzzsaw99's picture

butt aroma

piss on me

lies man


many have names that suit their characters

Bay of Pigs's picture

Good thing CNN has Wolf Blitzer in the Situation Room digging deep into the big stories of the day like the Zimmerman trial.

Look how far we've gone down the rat hole on TV. Dogshit on hundreds of channels, without one solid news network.

Herd Redirection Committee's picture

Well, all the channels are owned by 6 corporations...  I dare not even check the extent to which Board members and shareholders overlap.

knukles's picture


But on every fucking station.. take a look at "responsible" shit.  History, National Geographic... they're all reality tripe or cops arresting people, obey your gobamint overlord, bring freedom to the woild, border patrol, killing machines, military actions...

Couldn't be more blatant now, could it?

Talk about Perceptions Management.

Thank the Lord for Honey Boo Boo poops good