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

Tyler Durden's picture

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,"

Add to this, Santelli notes, that even the central bank architects of the (faux market) buildings (e.g. BoE's Carney) no longer want to live in these buildings... and problems lie ahead...

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Occident Mortal's picture

A market crash is preferable to currency oblivion.

Everyone involved knows this.

Anyway, good news for me today as my short on the DJIA is back in the money.

madcows's picture

Shorting takes balls.  The FED could destroy you at any second, and only the insiders get the memo's beforehand.

boogerbently's picture

Can Rick come up with a "solution" far enough ahead of the next election to be the GOP candidate?

I'm not encouraged with any other hopefuls, so far.

Chris Christie......really???

I think he is the Dem choice for the GOP.

madcows's picture

nice moobs.  are they real?

Havok's picture

Is it a bro or a manzier?

CheapBastard's picture

Sam's Club laying off 2,300 workers, about 2% of its workforce


That's the Headline Breaking news on Yahoo.

Shocker's picture

Its happening quite often. Sucks...

Layoff / Closing List:


kaiserhoff's picture

Does this mean you're going to need earnings and stuff to support your stock value?

Don't tell Jeff Bezos.  His hair might fall out.

Oh, wait...

Arius's picture

this guy is a lunatic - where would these people realize that there are no free markets? dahhhh

J S Bach's picture

Some good points made.  But the "Fairy Dust" analogy is a bunch of hokum.  The son-of-a-god-damned-bitch central bankers KNOW what they're doing.  They've been doing it for centuries... it's part of their religious creed.


To me, the only concern is whether or not "we the sheeple" will learn - after this upcoming and unprecendented bout of collapse and suffering - exactly who it is that is responsible for these "boom & bust" cycles?!  Will we learn that it is all based on dishonest money (debt-based fiat)?!  Will we bring to justice those persons and entities who knowingly foisted this villainous system upon us?!


Educating the masses as to the guilty parties and their nefarious machinations is crucial to finding any true light at the end of the monetary tunnel.  Otherwise, we will re-live this again and again until our grandchildren - in their hopeless servitude - spit on our graves for having allowed it to continue.

economics9698's picture

Anytime you try a decent crime there is 50 ways to fuck up. If you think of twenty-five of them, you’re a genius. And you’re no genius.
~Teddy Laursen (Mickey Rourke) in Body Heat, 1982.

0b1knob's picture

That's  another problem for future America.   Man am I glad I don't live there....

Be happy like Homer SImpson.

Manthong's picture

Aw Geez..

You’d think that the PTB  were Ominptent  or that they like really controlled everything like Hitler or Mao or somebody..

guess what  MF's...  the tide will be turned,

NOTW777's picture

at some point the slowing of all this government bribe/welfare/food stamp money flowing to WMT SBUX MCD and many others has to have an impact

zaphod's picture

But they haven't even started to taper yet, just talk only, that is how bad it is.

Silveramada's picture

Easy, Easy folks! the emergency exit is over there please all of you get out with calm....and do not pay attention to the alarm sound and the smoke...

Notarocketscientist's picture

Are you fucking RETARDED?  

I am not kidding - I mean how fucking slow are you - can you read?  Can you do basic math?




In fact they want to take money from your pocket to line the pockets of themselves and their masters.




Incredible that people on the web site still play partisan politics - HOPELESS BASTARDS.

Silver Bully's picture

'The FED could destroy you at any second, and only the insiders get the memo's beforehand.'

EXACTLY. At least back in 1929, the retail investors and traders had a real market to deal with. You were gambling with other gamblers. This time, there are no other gamblers . . . there is only the HOUSE (aka, the Central Banks) makiing the decisions. As told many times before, the House is a big club, and you ain't in it.

eclectic syncretist's picture

Look, anyone here who thinks the big banks on wall street that are best connected with the Fed haven't been selling equities over the past several months doesn't know what a distribution phase looks like.  They are going to make a lot of money on a drop, although they will never openly admit that they fade their client reccomendations. 

The Fed has started a tightening cycle, even though it is "only" a (frankly massive) $10,000,000,000 per meeting decrease in money printing, it was also the starting gun for anyone with their ears to the ground and not in denial about it's portent. 

Additionally, given that this bull market has had three up phases, with only two real corrections in five years, and completes a diverging or megaphone pattern on a chart going back to the complete denial of gold and silve as money in the 1970s-80s, means the bet here is down, and in a BIG way.

Lastly, and by far not least importantly, the high levels of growth seen in electronic technology and innovation over the past couple of decades are at an apex.  What are they going to do next, put smart-tablets on wheelchairs for invalids or in cars?  What a joke, when the phone companies could be disbanded and replaced for operations that function for pennies on the current dollar.  Internet communication is almost free, but if you want to use a hand-held device it's $50-100 per month.  Puhlease.

And if you want to go even further, consider that energy production has hit a sticking point from which it may very well fall if the politicoes and central banks don't make huge changes in policy pronto, against the will of their current crop of corporate masters.  I shouldn't need to say any more, as the outcome is obvious to anyone who care to stop and think about it.  Big changes are coming.

Comte d'herblay's picture

I'd be the first to accept this line of thought, but the fact that 53 agree with you and only 8 don't, sets an alarm bell off in my befuddled brain. 


But u r absolutely right about that memo, which likely went out on Monday last week to Jamie, Lloyd, and the rest of the Mafia. 

Keloid's picture

Shorting could be considered part of a prudent risk management  approach, provided your counterparties are solvent. Writing covered calls would be a way to play similar sentiment.

buzzsaw99's picture

1) There is no market.

2) It damn sure CAN GO ON FOREVER.

madcows's picture

they will all print until the currencies are destroyed.

Remember, there are trillions of CDS' to inflate away.

buzzsaw99's picture

Rick talks like the fed is under some kind of constraint. LMAO! Those maggots will steal the fillings right out of your teeth. This selloff is a ruse. Better get a grip on the real reality Mr. Santelli. There is no limit to what those maggots can and will do.

NoDebt's picture

Agree.  I think what markets are realizing now is some of what we talk about on here daily.  This MUST go on forever or the pain will be exquisite.  Janet will un-taper when things get ugly or she'll find herself replaced faster than a southern European politician.

Johnny Cocknballs's picture

Janet will do what Stan tells her to do, I reckon.

CrashisOptimistic's picture

Oh no!  Not a 3% correction!

Let's see S&P 600 and then you have a correction.  Of course, before that happens Obama would be issuing orders restoring price to 1800, and who would challenge him doing that?  Some guys who were short?  Do you really think they are going to carry the day against every pension fund in the world?  They would stop bullets long before it gets to court.

There is no market.  Do not play in this game.  The referees will take all your money, not that they need to because they can print whatever they want.  It's just that . . . you see . . . they have nothing to gain by letting you keep yours.




madcows's picture

check out argentina's stock market.  Up UP and Away.

ATM's picture

Probably going to be the best stock market in nominal returns for a while. I'm ready for triple and quadruple percentage returns that you go broke owning.

logicalman's picture

what you make in the market, you lose in the currency devaluation

Comte d'herblay's picture

I've been watching this and I don't see it in the last 25 yrs.  

After hitting a 120 high, it is where is was 25 yrs ago.

This disconnect is likely not puzzling to those who have the Deep Inside Information.  But it sure is to those of us who have watched the $ historically.

frankthomaswhite59's picture

they have nothing to gain by letting you keep yours.

indeed .

Tasty Sandwich's picture

At some point it threatens them though.

Currency collapse = end of the Federal Reserve System and end of the status quo

At some point, they will have to choose between destroying themselves through more printing or collapsing the economy completely by rendering the US government insolvent.

The interesting thing is that currency collapse and rendering the US government insolvent both threaten the status quo fairly equally.

Paul Volcker had room to maneuver.  The underlying, real economy didn't like it - but it was able to handle it.  Also, the US government wasn't carrying an incredible amount of debt.  Nowadays, it couldn't and it is.

Volcker's Federal Reserve board elicited the strongest political attacks and most widespread protests in the history of the Federal Reserve (unlike any protests experienced since 1922), due to the effects of the high interest rates on the construction and farming sectors, culminating in indebted farmers driving their tractors onto C Street NW in Washington, D.C. and blockading the Eccles Building.

SDShack's picture

When a sociopath feels threatened, they will simply do what it was that they did to get them as far as it did. They never change because they can't change. It's the frog and the scorpion syndrome. Not only will they just repeat their mistake, they will double down, or even go all in on their same bet. Forget that they think they have any choice in what they do. They don't. For a sociopath, there is only one option... to obtain more at any and all costs. The option that results in their own destruction never materializes in their mind. The fact that so many sociopaths actually end up destroying themself because they never stopped their own destructive practices proves it. There is no choice here for them.

SDShack's picture

Actually, I think the scene in Tombstone is the best analogy. The one that has Kurt Russel (Wyatt Earp) asking Val Kilmer (Doc Holiday) why a killer like Johnny Ringo does what he does. Doc says something like "People like Johnny Ringo have a great big hole in their soul. They can't steal enough or kill enough to ever fill it. They just want revenge." Wyatt asks "Revenge for what?". Doc says "For being born." Sociopath 101.

ajax's picture



Jesus Christ already: spare us your all-encompassing USA movie analogies...


Zigs's picture

Sociopathic societies are filled with psychopaths and we wouldn't even kill a fly.

dirtscratcher's picture

I don't agree with your analogy but I up arrowed you anyways just cuz that's a great scene from a great movie.

Tasty Sandwich's picture

Maybe I'm a sociopath, but I would just keep printing, while pretending that I'm not going to, because in my view we are beyond the point-of-no-return anyway.

Collapse now or collapse later.

SDShack's picture

I seriously doubt you are a sociopath. But a lot of TPTB are. So in order to understand how the world works, you have to look at it from THEIR perspective because only then does all this mindless stuff make any sense. I do agree that we are past the point of no return. It just gets worse from here. Much worse. Everyone needs to plan accordingly.

Ned Zeppelin's picture

I think that IS the plan, sir. 

ATM's picture

Of course it's the plan. They will print and destroy the Western world. Liberty, self government, capitalism must all be smashed once and for all. They plan is clear if anyone wishes to simply see and listen. The authoritarian fuckers who wish to tell you how to live, where to live, what to do, what not to do are well placed across the globe and have an infrastructure in place for when the chaos begins.

They can't control precisely when it will occur but they sure as hell are trying to get it going. and every day they pour more fake money gasoline into our basement witht he hopes that a spark will come. They are ready, we are not.

Ned Zeppelin's picture

Let's keep in mind that the problems Volcker had to fight were problems that the Federal Reserve themselves created.  Kind of like praising the arsonist for putting out the fire he started in his own house.  No hero status for Volcker in my book.  Rather, he demonstrates the utter contempt bankers have for everyone else, since they will carry out any policy, no matter how painful or destructive, to protect their wealth. 

His status as the wise elder statesman of banking is complete tripe. 

SDShack's picture

Exactly right buzz. Rick needs to understand what a sociopath is and does.

centerline's picture

They will print - as will every other CB.

The governments will grab - all of them.

We are caught right in the middle... getting it from both ends.

j0nx's picture

Both of those responses are correct. How to choose?

stocktivity's picture

But....but...but...the January affect was bullish before the last couple days...