This page has been archived and commenting is disabled.
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...
"What the Fed is doing now... is kind of a nothing activity."
Or the Hollywood version...
»
- 75208 reads
- Printer-friendly version
- Send to friend
- advertisements -
What Santelli hasn't yet grasped is the intensity of Marxist reality that is coming. The 1% -the potentially most "powerful" -are merely, subtly, andnaively being bought off-"led down the primrose path" While in the background all the pieces of a totalitarian state are being assembled. The trap door is about to shut. That's all Fama is telling him. For the Marxists running the country it truly is "no big deal"
what exactly does he think all that ammo "Homeland Security" has bought is for?
The Fed is trying to increase short term rates? Is that we he said??????
Excuse me for my ignorance, and sensible answers if you wouldn't mind, but if the FED takes $4Ts of assets and $4Ts of liabilities and cancels them out, who is it that won't get paid? I thought they were holding their own previously issued debt as collateral and shitty MBS which they’ve already paid for with the newly issued debt, which they didn’t stand a chance of recovering their money anyway?
"There is absolutely no connection between QE3 and the rise in equities." Can I get one of the Nobel prizes now too? I feel so smart...
No, they are for speshul peoples, not smart people.
Exactly. You must have attended an Ivy League school (or Cambridge/Oxford) for at least 10 years, studying confirmation bias dressed up as economics before they'll let you anywhere near one.
God I can't wait until the Chinese and the Saudi's announce their "mutual currency pact" that will allow the Chinese to buy Saudi crude with Yuan!!!
That will shake these fucking clowns up in the "Ivory Towers", I can promise you that!
Speaking of the possibility of an 'inside' 9/11 conspiracy:
"Even if it were true, which is extremely unlikely, who cares?" -- Noam Chomsky
Economic Nobel winners are not alone in their capacity for making idiot comments.
"What is happening in the concentration camps is really a nothing event, I assure you", Joseph Goebbels, 1943.
I am sure he certainly deserved a Nobel prize.
"Was it over when the Germans bombed Pearl Harbor?"
Damn, that one will leave a mark! +1,000!
Now if Santelli wanted to be fired immediately on the air, he would have responded to the dear eCONomist with that quote!!!
Nothing rattles the Jewish Banker Cartel, like those nuggets of reality from the ghosts of their past!!
He should've just called him an outright fraud. Especially after the guy basically called his right-on-the-money question unintelligible.
But hey, Rick's gotta play the foil...
Its all orchestrated event, but it was nice they used Rick to 'spill the beans' that tapering is a 'non-event'.
The MSM and Rick are all aware of what they are doing. Its all to pre-calm the markets, before its December and January (again). Seems like every year now around the new year...there is something going on. Bread and Circuses ?
Round and round we go every year now...its an annual cycle.
Anyway I have a lot of respect for Rick, and so does the CNBC, that is why they had Rick up against the PhD...they knew Rick would not try to do anything funny.
Rick for office ! He might get something done about these situations...back to work !
By having Rick up there it somehow 'calms' the TEA party to have 'their guy' up there, taking it and not dumping all over...not. Bread and Circuses.
Exactly. And don't expect Santelli to push for the real answers either. His BlowHorn bosses would fire his ass if he went too far with any of this.
Quite frankly, ZH posting him up all the time does little for any of us. It's just moar MSM bullshit designed to confuse, anger and divide us. The real enemy is the FED and the counterfeiting system itself.
Why all the love for Santelli here? I thought he came across as an obnoxious, bullying loudmouth, repeatedly interrupting his guest by shouting indignant, long-winded questions without giving Fama anything like enough time to reply. How on earth is anyone, Nobel prize winner or not, supposed to say anything useful about such a complicated subject in the five to 10 seconds between Santelli's outbursts?
Look, I don't pretend to understand the few comments that Fama did manage to make in between harangues, let alone defend them. The unfortunate thing is, his claim that all this is no big deal is extraordinary enough that it would have been interesting to have heard him defend it properly.
Also, he didn't seem to know where to start to answer Santelli's last rant, saying only that there was so much wrong with the question that he didn't know where to begin. Ok, fine, I'd like to hear him take just one or two pieces and explain the problems with them.
Or maybe it's hopeless: maybe CNBC is just a sewer, dominated by posturing blowhards shouting at each other, and is wholly unsuited to any sort of reasoned argument or civilized exchange of information. Maybe.
Show this, it is decisive
http://patrick.net/forum/?p=1230886
Useful charts, thanks.
Something wrong with the inflation adjusted housing though. Probably the Case-Schiller crap. In most of the county, total housing and rental costs are higher in the last few years than they have ever been.
Does FAMA actually manage someone's (his own?) money?
I thought he had something to do as far as advising some low cost institutional index funds. Or maybe I am thinking of Dennis Tito space tourist and indexer from Wilshire Associates.
Where in the hell do they get these people? They must do a lot of mind altering drugs in Princeton. If it's a non-event why are we doing it?
Because being seen to be doing something even if you think it is nothing is better than nothing. Got it?
If you do let me know, I don't understand what I just wrote!
You think Eugene Fama is crazy? You should see his son Gene Fama junior....now there is a real nut job
like father like son.....
http://www.dfaus.com/library/bios/eugene_fama_jr/
"Eugene F. Fama Jr. adapts academic research to the real world of investing. " - that says it all.
Hilarious...
Outfit should be more accurately called Delusional!
Don't know. Guessing from the second clip, they are all graduates of the Derek Zoolander School For Kids Who Can't Read So Good.
Love his explanation about pumping up excess reserves is just trading short term debt for long term. No, sir, Operation Twist did that (and it was a "nothing" event). When new dollars are being printed and sent out into circulation, even if in rather "static" places like Excess Reserves, that is NOT trading short term debt against long.
I also liked how he matter-of-factly stated that in 2008, the Fed started paying out above market rate interest on reserves held, without connecting it to anything.
To these charlatans, all events occur in isolation.
Chicago.
Same place they got Schultz from to bat cleanup after Connally tired of fucking the limp-wristed Europeans.
He's from Chicago, formerly a bastion of free market thinking but somehow enamored with the social planning that is QE. Their focking models are totally f'ed. What about duration? Borrowing short term and buying net $1trillion long term securities won't even come close to netting out once the trade is reversed... if it gets reversed.
"Chicago, formerly a bastion of free market thinking "
Chicago, presently a bastion of giving the entire market to Wall Street Banksters, for free.
"Kind of a "nothing" activity"? WTF is this guy smoking?
You see, in economics... and follow me on this one... in economics when you buy things and you sell things it completely cancels out. But here's the big brain twister that most people don't get... it really got me the first time around but after listening to some lectures I've come around to it... just follow me on this.... even if you buy MORE than you sell, it still amounts to nothing. Because buying and selling are opposites, and opposites cancel each other out. I know, I was really stuck on the math of it myself, but the linguistics here don't lie... the Fed is actually doing nothing! ... because buying + selling = nothing
Well, except that's accounting, not economics...
Yes, I get it now, thank you,
SO as long as we buy his BS that he is selling, then its OK (and cancels out as not a big deal).
And since Rick didn't splode all over then Rick must be OK with it, so then we should all be OK with it too.
(its just dismal logic...but it 'works' for the MSM and establishment)
Rick is working in the belly of the beast, a tough job.
When does this ride slow down ?
'What Difference Does it Make'? !!
Hey that's from the GS front company CNBC that nobody watches any more. Sorry, promised myself not to watch CNBC just like I had to quit reading Graham Summers articles a year ago.
I wonder who funds many of these PhD studies...
Oh yeah....circa 2009 from HuffPo: http://www.huffingtonpost.com/2009/09/07/priceless-how-the-federal_n_278...
"
The Federal Reserve, through its extensive network of consultants, visiting scholars, alumni and staff economists, so thoroughly dominates the field of economics that real criticism of the central bank has become a career liability for members of the profession, an investigation by the Huffington Post has found.
This dominance helps explain how, even after the Fed failed to foresee the greatest economic collapse since the Great Depression, the central bank has largely escaped criticism from academic economists. In the Fed's thrall, the economists missed it, too.
...
"
Why not ?
Worked just fine when they bought all the politicos.
Michael Corleone: "And we have newspaper people on the payroll, don't we, Tom?" [Tom nods]
As JFKs dad, old Joe Kenedy called them, " Pocket People".
Clearly he got his award for the same reason Obama got the Peace Prize. He says what people with vested interests in being deluded want to hear.
Uhh where am I & where's my slippers honey?
I don't think the Fed is putting upward pressure on short term rates while wanting lower long term rates. That would be an inverted yield curve, which can snap the economy's neck in a half second.
I must have missed something or he did.
The fed is issuing short term debt (FRNs) that pay 0.50 percent RISK FREE. If I'm a banker in today's economy, why would I lend to anyone but the Fed? When the Fed STOPS issuing this paper, the bankers will be forced to look elsewhere for assets.
...AND risk premiums will begin to rise, Housing Bubble 2.0 will PoP and we're back in 2008 except the FED is THE bad bank as CHase, BofA, et al have cleaned their balance sheets sufficiently. The FED will not be unwinding. Ever. The new debt will be held to maturity over the next few decades and the "interest" the FEd deposits back to the Treasury will still be used for accounting tricks.
OK...I think the PhD economics 'out' is...its all funny money anyway, and since its all fiat, its really no big deal.
(just getting the jargon universal translator going again)
Alice through the Looking Glass.
I almost dropped my Peace Prize when I heard that!
That little lying fucker looks he's one of the Roswell UFO incident survivors. The aliens are using QE to take us over.
Actually I thought he played the 'insane nobel economist' role almost as well as he played the 'scary preacher' role in Poltergiest II.
Now I understand why he was awarded the Nobel Prize.
What do people expect a Nobel prize winner to say? The Nobel prizes are acknowledgements from lefty libtards to their fellow travellers.
Re: lefty libtards
Do I REALLY need to quote the "Conservative" leader who said that another "Conservative" leader proved that deficits don't matter.
Perhaps there's more going on than simplton "Liberal" vs "Conservative" here...
Those conservatives weren't awarded prizes from the worldwide left wing circle jerk.
Once again folks, nobel prizes are given to those who support the status quo, period.
Sure does explain why there is no Nobel prize for math yet.
Alfreds' first wife ran off with a mathematician, so that why it was not included originally.
Since it is no big deal, the question has to be either, a) Then why do it at all? or b) Then why ever stop doing it (as Santelli asked)?
Because where is your Nobel Prize now shut the fuck up!
"if you like your current policy, you can keep it"
if your head is not exploding, you're not paying attention.
Gotta go to ZH page 2 now to get at this. Other muck has replaced it here. Like who gives a flying F#$* about someone named Santelli?
watch the witches of Bloomberg burn a Twitter contrarian at the stake
http://www.bloomberg.com/video/twitter-has-a-limited-marketplace-wadhwa-...
Love how these shitcock networks try to replicate red team/blue team.
Yea team! Give 'em hell team member!
Over.
Well, it's no big deal to him. After all, the ivory tower gods cannot be concerned with the struggles of ants fighting in the dirt.
ahh ... they give nobel prize to anyone these days ... last i checked even krugman had one, not to mention obama ...
Yea Gawd's; $4 TRILLION move of $$ eventually is a "nothing kind deal". My, my lliving in Chicago is such a mundane, laid back place. Ah ha, of course Chicago---seems there is another dude from that hole (where I once lived) that suffers from the same oh well mentality? (pushing my luck with that word)
Man, where in the hell did I get on this boat ride? Milestones
And everyone scratches their heads and still wonders why kids come out of college dumber than a box of rocks.
My nephew is struggling with economics this semester. I tell my sister that I can try to help him when he comes home for Thanksgiving. A few minutes later I tell her not to bother since what I know about economics isn't being taught anymore.
Why buy stocks when you can buy BitCoin? Last price:$212.26395
Why buy either when you can buy your Obamacare for $650/mo and a $7200 deductible per occurrence.
Over.
Is it just me , or is Fama conflating the naked monitization that we are seeing today with Operation Twist???
Or is he saying that the Fed will sell bonds and retire the proceeds? That would do a number on the government's flow of funds!!!!
Sell the bonds? There's the rub: at what price?
+55
Sounds like he was talking about Twist rather than QE3. Alzheimers?
It's premeditated cognitive dissonance ... and it will completely fail.
I did NOT believe in his EMT when I was in school in the 60s-70s.
I do NOT now.
I can see Santelli showing deference to a Nobel Laureate, but Fama certainly did NOT show he was worth that award in this interview in my opinion.
It would have been great to see Santelli go apoplectic!
Seriously, just to name the most obvious: if he thinks real market pricing of Treasury debt would be "no big deal" I'll show him how to use an Excel spreadsheet.
Does it have a mark-to-make-believe function?
just hide those particular columns and rows.
This is the function he needs to get familiar with: " ^ "
No knock on, just a nothing sandwich. Sure.
Bizarro world.
Nothing else to say.
All you do it turn the crank counter-clockwise and
Cue: demonstration of hand turning crank counter-clockwise on the Liquidity Pump ...
and the liquidity drains out of the system.
Emperor Fama has no clothes. The look on Santelli's face is priceless at 3:45.
Early dementia, maybe?
Mix the aluminum in your deodorant with the Floride in your...... well in your everything and you got the special plaque sauce.
************WARNING************
THE FOLLOWING PRODUCTS MAY CONTAIN TOXIC AMOUNTS OF ALUMINUM:
Foods made with aluminized baking powder*, self-rising flour*, and salt. The following are some of these products:
Microwave popcorn
Salted snacks
Hot cocoa mixes
Coffee creamers
Pickles and relish
*Flour tortillas
*Pizza crust
*Muffins
*Doughnuts
*Cookies
*Pancakes
*Waffles
*Cupcakes
*Cakes
*Baking mixes
*Brownies
*Pastries
*Corn bread
*Banana bread
*Carrot bread
*Dipping batter for fried foods
Over.
I think I can start selling Nobel Economic Prizes. $25 each, 4 for $150.
Oh I want one! Where can I buy? Resume builder.
Over.
Hey Rick,
"There are serious gaps in your understanding."
Waka waka waka!
modern day economists will carry the burden of responsibility much like the doctors of holocaust Germany.
Let's do a movie:
Tyler's List.
Over.
A mashup.
Lizard Occupied America circa 2009-2015 and one group of industrial bloggers try to rescue the Matrix zombies from future peril by spiking their blue pills with reality extracts.
Over.
Was this for real?????
The PhD is probably just working to get an invite to the next Fed meeting...as a special guest.
Working the street.
Ack!! ademics
Who the fuck is in Charge here ?
No big deal, eh? So real money just rushes in and out on the change of one word in Fed minutes just because of what then? This guy, Fama, is probably the lead new experimental economist that will lead with, "Arbeit macht frei"
Don't talk about Dr.Mengele, err Fama like that.
and he could be right
Santelli's last question should have been, "With all due respect sir, are you fucking retarded?"
medicated
He kept answering the wrong question:
The question was NOT what happens when you exchange one type of debt for another type further out.
The question was WON'T there be a come to Jesus for all this Printed debt?
I know the feeling! I retired one side of my balance sheet, holding all my liablities to bankers... I Just don't understand why they keep sending me past due notices...I said to them its been retired....for the LOVE OF GOD...
Fama: "The World is flat I tell you! Flat!"
Spelling FIAT.
The "The World is fiat I tell you! FIAT!"
and since fiat is just paper...well.
(so the next economics lesson will explain how it is all faith based and we only have to believe enough).
This moron thinks they haven't been lowering the short rate...it has gone down despite them. This guy is so 2012. Operation twist is totally out and QEternity is totally in.
Fuck me.
I am stunned shocked quiet.
I have now, personally, seen it all.
Mr. Fama, what you've just said is one of the most insanely idiotic things I have ever heard. At no point in your rambling, incoherent response were you even close to anything that could be considered a rational thought. Everyone in this room is now dumber for having listened to it. I award you no points, and may God have mercy on your soul.
This is exactly how economists think. This is your Economics 101 class. They think in theory and academic exercise -- ceteris parabus. That pesky bug in the ointment is REALITY.
"What if people don't WANT to buy at lower interest rates? What if other countries don't WANT your debt any more because they don't trust you?"
"Oh... well, we have to filter out those unlikely events and concentrate on the theory. It's all about guns and butter, you know."
Academic idiocy.
Oh so the 50% spike in the 10 yr yield when the market got wind of Bernanke threatening to taper was a kind of nothing event as well?.
Just frightening, Faber was right, these fuckers are going to print every last dollar DC wants to spend to keep the monster alive.
The only thing that will stop them is foreigners dumping the dollar, we can't be that far away.
But they're doing the same thing.
My prediction is the day after Iran tests their first Nuke, that is the day the alliance to take down the dollar as reserve currency makes it's announcement. All the dominos are lining up for that one big trigger event.
"Once again folks, nobel prizes are given to those who support the status quo, period."
nobel prize = golden knee pad award.
Further proof that the nuts are running the nut house.
Since reserves at the Fed are not a marketable security looking for bidders, and Treasuries are, I am going to say he is completely wrong on the unwind being balanced. But since it will never happen, we will never know.
Hope Fama did not school yellen..........
LOL!
SAntelli got punked
I am going to have drink and laugh. BTW I don't drink.
Fama is right in the sense that the Fed's balance sheet is somewhat "neutral." All of their purchases are made by creating new money, therefore when the reverse happens, money will effectively be destroyed. This is, of course, the end of the economy, and Santelli is correct in that this ZIRP cannot end, because the entire system now depends on it.
See also:
he Biggest Scam In The History Of Mankind - Hidden Secrets of Moneyhttp://youtu.be/iFDe5kUUyT0
Taking on and releasing reserves is neutral enough. But he equates cash reserves with short term debt and says they balance out marketable security long term debt. that only works if the Fed crams those Treasuries it is buying down the banker's throats in exchange for their reserves and tells them they can never sell them. Otherwise, their marketable nature will implode the debt market upon release by the fed in a way that their reserves will not offset. The fed will take massive losses and pound the debt market if they try to unload in any normal fashion.
"Otherwise, their marketable nature will implode the debt market upon release by the fed in a way that their reserves will not offset."
Which is why they will never be sold by the Fed into the marketplace, but be allowed to mature instead (at well below face value for the mortgage bonds btw -the losses the Fed will take are tomorrow's story).
Which is why they will never be sold by the Fed into the marketplace, but be allowed to mature instead (at well below face value for the mortgage bonds btw -the losses the Fed will take are tomorrow's story).
Bernanke's euphemism when pressed during Humphrey-Hawkins testimony is that the Fed would "let them run out" and he seemed to bne talking not just about the short-dated MBSs but possibly hinting at long end as well, though to be planning a 30-year War on the bond market would seem like they've admitted defeat and the only way out is to accelerate the money printing, because we don't have core inflation over 2% and unemployment is "only" 7%, right?
This is a Perpetual Motion Machine, which anyone with a brain will tell you is impossible.
Unlike Dept. of Treasury with it's debt limit constraining new issuances (to some extent), the Fed has no limit to the size of its balance sheet and it can grow without any bounds of time or size.
They can hold that debt forever and let it all mature, even the 30-year debt.
Piled Higher and Deeper is what we called a PhD. This Fama CLOWN is classic!
Oh that Santelli, getting all worked up over a "kind of nothing event" 4 trillion unwind of Fed bonds. Full on comedy - truth stranger than fiction. Lol.
I'll see your 4 trillion and raise 16 quadrillion in bad bets Obami promised you'd cover.
The TV sure shows some weird shit sometimes.
Nobel prize use to mean something. Since Kissinger got one its a perverse joke.
Fama says $4 Trillion in debt is a "kind of nothing activity". ????
Santelli tries to make it simple for the Professor, but the Professor still can't get it.
Santelli even added some high language and made it sound a little loftier to get the words up to the clouds in which the Professor lives.
The Professor still could not grasp it.
Professor, the question is this (at rock earthbound level): "If the FED does nothing, why does the FED do anything?"
Morons as Professors and in charge at the FED, MORONS!
I take it Professor that the Fed does not impact the economy. This now makes sense to me - It's not what the Fed does that matters. It's what people think the Fed does that matters. When people do ultimately see that the Fed can't help the economy - WHOOOOSH! Once I was blind, but now i see - Finally, I get it - kind of like stepping off a balloon at the edge of space! Thanks Professor!
Similarly with Krugman, only an intellectual could be so ignorant.
Why is everyone so inclined to assign it to the realm of incompetence when allthe indications are for conspiracy?Controlled demolition of the economy?!?!
Um, excuse me, but the Jonas Brothers have broken up..
Now *that* is a big deal! (Per Yahoo)
The level of Fama's confusion is stunning. Yes, the FED is exchanging short term debt for long term debt -- but the exchange is not market neutral.
It would be market neutral if the FED raised short term debt in the market. But it doesn't. The FED pays for short term debt with printing press money. The result of the FED's activity is more money in the system, which obviously is not market neutral.
It may be the case that new money is piling up in the system as excess reserves, and is not being deployed (except to finance Big Bank trading activity, hence the rise in the stock market). But the process is far from being market neutral.
What the authorities will not admit -- especially to themselves -- is that they are conducing an experiment, and have no clue how the experiment will reach some kind of stable outcome.
At the core of egghead problems is the belief that the market pricing is an indestructable monolith representing true undeviated value which will not react to government actions, instead of the reality that it is a herd of fainting goats. Good luck with that balanced unwind, egghead.
Two hobos talking with southern accent:
Hey Rastus can I have one of your smart pills.?
Why sure Julius.
Hey Rastus can I have another of your smart pills?
Of course you can Julius.
Hey Rastus can I have one more?
You bet Julius.
After many more pills Julius says: hey Rastus, I don't think those pills work.
Rastus replies; You know Julius I think you getting smarter and smarter.
Watching the video twice has shone light on this maniac's twisted logic. He actually believes that the 85 billion per month the fed is pumping out is short term debt since the fed pays out interest on reserves and for some god forsaken reason he equates all the new money with reserves. I'm sure simple math can show that he is wrong in that regard as I doubt reserves are rising at 85b per month, but also reserves are not short term debt, but rather as pointed out by Tyler, fuel for rehypo induced frenzy in risk assetts. The conclusion to draw from this is in a perfect society we should make TV illegal.
I'm not an accoutant or economist.....and I didn't stay in a Holiday Inn Express last night.....but if you draw a 'box' around the entire monetary system then it must equal out, right? all things remaining equal (asset values inside the box), if the .fed 'creates' money, then the values inside the box must. If there are losses inside the box (aka bank write offs, loses, etc) and no new money is created, then asset values inside the box must decline.
So, inflation, it the amount of 'extra' money coming into the box that does not offset loses, right? If this is the case, then then the value we see setting on the .fed's balance sheet is the amount of deflation we have seen minus the amount of asset valuation increase.....so if we are reporting the normal 2% inflation, then we have had $4T in deflation.....
Is this a simple physics/thermodynamics problem?.....draw a box around the 'system' and there you have it.
No no no. He's right. He's got the data to prove it.
Hahahahaha.
Empirical financial economics. This is going to be great. Do they have precedent for the lowest interest rate environment in all of human existence modeled? Or are they waiting for the results to come in?
Please. Let This will kill off the Chicago school once and for all.
There are many INTERESTS in keeping the Chicago School alive. They will fight to do so untill their last breath of life.
Luv how the audience reacts to the show.
"Stunning" raves The Daily News
"Do NOT miss this" says The Daily Mail
"All hail The Sant-man" claims Perez Hilton
I'm sure a higher Internet rate won't affect anyone's DCF model. "It's neutral" = new green shoots.
Now we see Puerto Rico’s best hope, not just to become the 51st U.S. State, but the State most popular among the echelon of our great country. All it just needs to do is change its name to Denial.
"Well, our economic therory and the models based upon it predict that what the Fed is doing should raise short term rates and lower long term rates, but it's doing exctly the opposite":
http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/
"But we'll just keep using that obviously incorrect theory because we tell banks and governments what they want to hear - you can borrow your way to prosperity."
Sincerely,
Revered delusional morons in high places
They're setting up ATMs for Bitcoins in Canada and ATMs for gold transactions in Germany.
Why not setup ATMs for MBS and other FED paper assets at every Walmart Supercenter. They will go like hot cakes. Better yet, have one of those grab thingies filled with FED paper assets and the kid pays a buck to try his/her luck at snatching one of those papers.
IT IS ALL SUCH FUCKING BULLSHIT. THE DOLLAR IS CRAP. THE FED IS A SHIT HOUSE AND THE WHITE HOUSE IS A ZOO.
I like the idea of everyone having a bankster window. I think, for efficiencies sake, we should setup auto transactions to every bank account holder in the United States, we can expand it to the world later. Lets start at 150 Trillion per month and go up from there.
I want me some of that neutral money....
Saw a gold vending machine in Shinjuku near the station. Heard select Korean banks will be establishing gold coin vending machines. It's coming.
this just can't be right. this dude is a plant from the Howard Stern show pretending to be Fama. this just isn't possible.
I guess now he can really cash in on the nobel prize and open for Krugz on his world tour of ridiculousness. These guys have to have a gentleman's bet gonig on just how crazy a Nobel winner can sound before people start to question them. if you are keeping score, Fama just pulled ahead.
He is NOT, a Nobel prize winner! He is a winner of RIKSBANKENS PRIZE IN MEMORY OF ALFRED NOBEL. Its a scam all the way through, A Nobel Prize winner is someone who wins a piece of the ESTATE from Alfred Nobel. This guy has simply won a peice of confiscated Swedish Taxpayers money.
Perhaps this interview gives insight into the methods behind their maddness?
The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2013
Interview about the 2013 Prize in Economic Sciences winners.
1.Eugene F. Fama
2.Lars Peter Hansen
3.Robert J. Shiller
http://www.nobelprize.org/mediaplayer/index.php?id=1970
If you give the Nobel Economic prize to a monkey, does that make the monkey prescient? "The greatest heresy is that the office or the award of a prize sanctifies the holder thereof" ~ Lord Acton paraphrased.
Well, the guillotine-list just got longer.
Fama exists so that EMH gets peddled and provides HFs with a perpetual source of alpha: the Chicago school finance students.
I am a believer in Santelli, but he should have shut the .. up and let Fama finish.
I don't know Fama from a hole in the road, but in his own mind he is convinced. I would rather have heard him out to have seen for myself how he justified his position. He at least tried to answer unlike so many of the others. Santelli didn't help the cause there.
Sorry to sound like MDB but-
What can't be argued, is the rest of the world hasn't quite abandoned the dollar (although moves are clearly afoot), and the financial markets have decided to turn a blind eye for now to the oncoming train-wreck, (and they are also getting free money they don't have to lend out to the wider market). I thought he was trying to say that, in a normal world, they would have been crucified if they tried to play short-term / long-terms games, and they haven't been. So who is to say they can't just write off both columns, stick their fingers in their ears and tell the bond market to just suck it up. (yeah? Or else what ....)
You must always remember, we ain't in Kansas anymore. This is a parallel universe. The old rules don't count, you should all know that now.
-I'm not saying the man isn't an idiot-
I think that you are correct. A professor economist not practiced in talking to the non economist public can't talk to a ADD guy like Santelli who is a mile per minute.
They need to allocate at least 15 minutes and then let the guy talk, without interuption.