This page has been archived and commenting is disabled.

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...


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 01/24/2014 - 16:03 | 4363905 DrunkMath
Fri, 01/24/2014 - 16:13 | 4363960 Occident Mortal
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.

Fri, 01/24/2014 - 16:29 | 4364039 madcows
madcows's picture

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

Fri, 01/24/2014 - 16:51 | 4364172 boogerbently
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.

Fri, 01/24/2014 - 16:55 | 4364185 Stackers
Stackers's picture

un-taper in 3, 2, ......

Fri, 01/24/2014 - 16:58 | 4364202 madcows
madcows's picture

nice moobs.  are they real?

Fri, 01/24/2014 - 17:24 | 4364392 Havok
Havok's picture

Is it a bro or a manzier?

Fri, 01/24/2014 - 18:21 | 4364622 CheapBastard
CheapBastard's picture

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


That's the Headline Breaking news on Yahoo.

Fri, 01/24/2014 - 18:56 | 4364650 Shocker
Shocker's picture

Its happening quite often. Sucks...

Layoff / Closing List:


Fri, 01/24/2014 - 19:00 | 4364742 kaiserhoff
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...

Fri, 01/24/2014 - 19:23 | 4364792 Arius
Arius's picture

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

Fri, 01/24/2014 - 20:03 | 4364906 J S Bach
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.

Fri, 01/24/2014 - 20:07 | 4364924 economics9698
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.

Fri, 01/24/2014 - 22:15 | 4365312 0b1knob
0b1knob's picture

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

Be happy like Homer SImpson.

Fri, 01/24/2014 - 22:42 | 4365380 Manthong
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,

Fri, 01/24/2014 - 19:31 | 4364822 NOTW777
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

Fri, 01/24/2014 - 19:51 | 4364883 zaphod
zaphod's picture

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

Fri, 01/24/2014 - 22:01 | 4365263 Silveramada
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...

Tue, 01/28/2014 - 06:42 | 4374345 Notarocketscientist
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.

Fri, 01/24/2014 - 17:41 | 4364478 Silver Bully
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.

Fri, 01/24/2014 - 18:55 | 4364715 eclectic syncretist
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.

Sat, 01/25/2014 - 09:32 | 4366343 Comte d'herblay
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. 

Sat, 01/25/2014 - 10:52 | 4366452 Keloid
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.

Fri, 01/24/2014 - 16:02 | 4363907 buzzsaw99
buzzsaw99's picture

1) There is no market.

2) It damn sure CAN GO ON FOREVER.

Fri, 01/24/2014 - 16:09 | 4363935 madcows
madcows's picture

they will all print until the currencies are destroyed.

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

Fri, 01/24/2014 - 16:11 | 4363948 buzzsaw99
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.

Fri, 01/24/2014 - 16:23 | 4364004 NoDebt
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.

Fri, 01/24/2014 - 16:50 | 4364161 Johnny Cocknballs
Johnny Cocknballs's picture

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

Fri, 01/24/2014 - 16:26 | 4364020 CrashisOptimistic
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.




Fri, 01/24/2014 - 16:28 | 4364030 madcows
madcows's picture

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

Fri, 01/24/2014 - 18:21 | 4364624 ATM
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.

Fri, 01/24/2014 - 20:32 | 4365024 logicalman
logicalman's picture

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

Sat, 01/25/2014 - 10:20 | 4366406 Comte d'herblay
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.

Fri, 01/24/2014 - 16:34 | 4364074 frankthomaswhite59
frankthomaswhite59's picture

they have nothing to gain by letting you keep yours.

indeed .

Fri, 01/24/2014 - 16:30 | 4364047 Tasty Sandwich
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.

Fri, 01/24/2014 - 16:48 | 4364157 SDShack
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.

Fri, 01/24/2014 - 17:03 | 4364221 SDShack
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.

Fri, 01/24/2014 - 17:20 | 4364375 ajax
ajax's picture



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


Fri, 01/24/2014 - 17:38 | 4364457 Zigs
Zigs's picture

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

Fri, 01/24/2014 - 21:45 | 4365209 dirtscratcher
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.

Fri, 01/24/2014 - 16:58 | 4364209 Tasty Sandwich
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.

Fri, 01/24/2014 - 17:06 | 4364252 SDShack
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.

Fri, 01/24/2014 - 17:15 | 4364338 Ned Zeppelin
Ned Zeppelin's picture

I think that IS the plan, sir. 

Fri, 01/24/2014 - 18:25 | 4364645 ATM
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.

Fri, 01/24/2014 - 17:13 | 4364324 Ned Zeppelin
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. 

Fri, 01/24/2014 - 16:42 | 4364116 SDShack
SDShack's picture

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

Fri, 01/24/2014 - 16:23 | 4364003 centerline
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.

Fri, 01/24/2014 - 16:09 | 4363941 j0nx
j0nx's picture

Both of those responses are correct. How to choose?

Fri, 01/24/2014 - 16:11 | 4363957 stocktivity
stocktivity's picture

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

Fri, 01/24/2014 - 17:44 | 4364492 Silver Bully
Silver Bully's picture

You forgot  bullet point 3:


1) There is no market.

2) It damn sure CAN GO ON FOREVER.

3) Eventually there's no one left with confidence in the market, and everyone walks away.

Fri, 01/24/2014 - 16:06 | 4363924 wisehiney
wisehiney's picture

Never would pay for overpriced assets. The sad thing is that when they get to the REAL cheap level, they are going to continue crashing from there.

Fri, 01/24/2014 - 23:14 | 4365467 DanDaley
DanDaley's picture

That's because people will find out that, as Billy Clinton so eloquently stated, "There's no there...there."

Fri, 01/24/2014 - 16:06 | 4363927 carbonmutant
carbonmutant's picture

Trust is evaporating like snow on a hotplate...

Fri, 01/24/2014 - 16:13 | 4363961 Winston of Oceania
Winston of Oceania's picture

That's what happens when you shoot hopium.

Fri, 01/24/2014 - 17:07 | 4364262 ejmoosa
ejmoosa's picture

...and when the governments no longer trust each other, that's when the game ends.

Fri, 01/24/2014 - 16:08 | 4363939 buzzsaw99
buzzsaw99's picture

Take a look at TWTR Rick, if you want to see fairy dust in action.

Fri, 01/24/2014 - 16:11 | 4363953 Yen Cross
Yen Cross's picture

     That's funny Santelli mentioned Carney. The Cable is taking a beating today. That's what happens when traders start to lose faith in central banksters because they change the rules when ever it pleases them.

     Santelli is spot on by the way, and he didn't say anything we at Z/H didn't already know.

Fri, 01/24/2014 - 16:11 | 4363959 El Oregonian
El Oregonian's picture

If it wasn't for Santelli CNBS would get no viewership at all. Nice work Rick.

Fri, 01/24/2014 - 16:13 | 4363962 eatthebanksters
eatthebanksters's picture

Sounds like a lemming migration...

Fri, 01/24/2014 - 16:13 | 4363963 verbot
verbot's picture

Verbot.exe...load ghost of Mark Haines......

Where is my fucking cheetos and that lazy girl i am training to be a reporter?... oh, sorry.

Being dead has made me testy but when rick santelli rants i just have to come down for a look at an old shill in rare forml... A good man would have left years ago but rick stays... 

I would have reported the truth but i died just right before this all went bad...any idea they may be connected?

The verbot cant hold my spirit very long so i will give you the secret of the universe in one sentence....

 Firstttttt.....poll mem.....all sectors temp load os........load recovery........

Rec fail

Load fail

Verbot offline...powering down to save system resources...

Fri, 01/24/2014 - 16:18 | 4363977 ebworthen
ebworthen's picture

"Fairy dust!  More fairy dust!

Does Yellen have her wings yet?!?!

My God!  They have to do something!  Summon the Unicorns!"

Fri, 01/24/2014 - 16:19 | 4363984 Wait What
Wait What's picture

i like this santelli guy. too bad he works for something called CNBC. never heard of it.

Fri, 01/24/2014 - 16:20 | 4363986 stocktivity
stocktivity's picture

Oh Oh ...Low of day

Fri, 01/24/2014 - 16:19 | 4363991 papaswamp
Fri, 01/24/2014 - 16:21 | 4363996 MathWins
MathWins's picture

Printing tons of money doesn't matter, having a bunch of worthless deriviatives hid on your books doesn't matter, the debt of the U.S., Greece, Italy, France, Spain, and Ireland (just to name a few), doesn't matter.  Nope, not at all.

More Fairy Dust needed!!!

Fri, 01/24/2014 - 16:24 | 4364014 Johnny Cocknballs
Johnny Cocknballs's picture

Corps and banks are sitting on shitloads of cash.  Shitloads.  So on the one hand traders are picking up CDS because of "fairy dust" - but why is there no excess margin in the system when there's a shitload of cash sitting in banks.

Something isn't computing for me here.  I like Santelli, usually, but this was perplexing....  I am on almost no sleep and have been reading comments to Krugman today  (my god, my god, why hast thou forsaken us?) so maybe I'm experiencing brain flatulence.


WTF is Santelli talking about here?  Can someone e'splainame?


BTW, funny how Krugman wrote in one of his 'confidence fairy debunked' articles that Keynesian macro/stim over the past, at the time, 5 years has worked splendidly, but most of the money is sitting idle {and otherwise spent as wisely as you'd expect} which doesn't stop him from either claiming a] the stimulus worked pretty well but b] we just need more of it.

Sorry to belabor my Krugman hate today.  I just hate that the guy has legions of fanboys and girls who keep regurgiating the same handful of false premises over and over, punctuated by making some inane complaint about "teabaggers".



Fri, 01/24/2014 - 16:31 | 4364055 ebworthen
ebworthen's picture

Central bank liquidity has allowed banks to lever up again using derivatives and swaps.

Sure, they have cash, but it's levered 30 to 1 (or more) again.

No fiduciary responsibility or rule-of-law.

2008 Redux, except worse.

Fri, 01/24/2014 - 16:46 | 4364105 Johnny Cocknballs
Johnny Cocknballs's picture

Thanks.  In hindsight this now seems like it was actually pretty obvious but I somehow just missed that point amongst the analogies.  He was talking cannon balls which made me think of this annual pool party I used to go to as a kid where one of my dad's especially fat, especially alcoholic, but especially hilarious buddies would, at some point, endanger the lives of a plethora {verily, a plethora} of small children in order to wow all of us with the large splash... 

it also made me think of this girl, a few years older than me, who went from having a plank-of-wood-like body to something more like Jessica Rabbit in about a two year period. 


Ah, those were the days, when you could get a cast iron chubb merely from glancing at a 15 year old girl in a bathing suit without fear of arrest.  I had a Cal Ripken-like streak of swimming pool boners in the late 80s/early 90s...

But you can never look, no you can never look back...

Fri, 01/24/2014 - 17:02 | 4364210 ebworthen
ebworthen's picture

Thanks, had the Don Henley album "Building the Perfect Beast" back in the day - bought the CD when it came out - a classic.

"I can see you...Your brown skin shinin' in the sun...You got that hair slicked back and those Wayfarers on, baby."

Fri, 01/24/2014 - 16:34 | 4364067 papaswamp
papaswamp's picture

Corps may be sitting on a bunch o cash...but they are sitting on far more debt...... There in be the probz

Fri, 01/24/2014 - 16:45 | 4364121 Dingleberry
Dingleberry's picture

correct....shitload of cash that is offest by even bigger shitload of debt and margin, plus the pucker factor of possibly needing cash in a run (see China).

Plus is the BofE stopping swaps with the fed?

Which is why this shit won't work.

The what is not in doubt.

The when is.

Looks like gold knew something was amiss (again).....

Fri, 01/24/2014 - 16:41 | 4364107 Carpenter1
Carpenter1's picture

Corps sitting on more debt than cash. 

Fri, 01/24/2014 - 17:19 | 4364366 Johnny Cocknballs
Johnny Cocknballs's picture



As to the banks, it's still very hard to process that, we all lived through 2007/8, and the same fucking banks are over leveraged...again... having used free money from the same Fed that was vital to the sheer extent of the housing bubble/subprime crisis.  It's beyond corruption, beyond stupidity...  it's the same fucking robbers walking into your house the following week as the same cops aid and abet them.


There will be repudiation...oh yes...there will be repudiation.


Fri, 01/24/2014 - 17:09 | 4364283 ejmoosa
ejmoosa's picture

And along with shitloads of cash, those corporations have taken on even more shitloads of debt....

Fri, 01/24/2014 - 17:24 | 4364391 alangreedspank
alangreedspank's picture

Lots of cash sitting in banks (actually, at the Fed) but the bond market cashflow is thinning. Replacing old (cheaper, more yeilding) bonds with newer (costlier, smaller yields) is taking it its toll after 6 years of this shit.

Sat, 01/25/2014 - 05:04 | 4366026 disabledvet
disabledvet's picture

and it's as simple as that. "Make country A pay more so that Country USA pays less."

This isn't a question of "going on" but of the will to execute on your own people the denial of even there own earnings.

Argentina, Venezuela, Brazil, South Africa, Turkey, Ukraine, Zaire, Zimbabwe, Egypt. India, Indonesia, Japan. "Now even Canada, Australia, Europe and Great Britain itself."

Once China blows sky high there are simply no more dollars left in the world.

Thise folks in Davos might think they're in the right place (and maybe for themselves they are)...but I would be aboard an Aircraft Carrier or checking in at the Cafetaria at NATO HQ right now myself.

Yet again "rates have been persistently low for a persistently long time."

Fri, 01/24/2014 - 16:26 | 4364023 f16hoser
f16hoser's picture

Thanx Rick. You're very astute. We never would have figured this out on our own!

Fri, 01/24/2014 - 16:27 | 4364028 kahunabear
kahunabear's picture

I've got one word for ya. QE4. 

Fri, 01/24/2014 - 16:32 | 4364062 Australian Economist
Australian Economist's picture

Isn't this exactly what Peter Schiff said would happen?


$120b QE soon?

Fri, 01/24/2014 - 16:35 | 4364072 Spungo
Spungo's picture

Solution: let's print 75 billion then leverage it so we can pump 750 billion into the stock market each month. Everybody wins!

Fri, 01/24/2014 - 16:40 | 4364102 Australian Economist
Australian Economist's picture

What happens when the Fed gets a margin call?

Fri, 01/24/2014 - 16:41 | 4364113 Johnny Cocknballs
Johnny Cocknballs's picture

We invade someone for some ex post facto, contrived "reason" that the sheeple will by and large believe.

Fri, 01/24/2014 - 21:37 | 4365190 Keyser
Keyser's picture

Don't think the sheeple will buy it this time. Too many people have taken the red pill. 


Fri, 01/24/2014 - 18:04 | 4364574 vxpatel
vxpatel's picture

who has the power to call their margin?

Fri, 01/24/2014 - 18:45 | 4364704 whoopsing
whoopsing's picture

Mother Nature ?

Fri, 01/24/2014 - 19:29 | 4364815 RaceToTheBottom
RaceToTheBottom's picture

When the FED gets a margin call, they pay off the call using printed money. It is all they know how to do.

Fri, 01/24/2014 - 21:36 | 4365187 Keyser
Keyser's picture

The same thing they do when they naked short the PM markets, they write a check on an account with a zero balance and the treasury cashes it. 


Fri, 01/24/2014 - 16:44 | 4364129 Flakmeister
Flakmeister's picture

People are starting to realize that a lot of stuff can't go own forever...

The thing about Santelli is that he thinks that the "free hand" is all that is needed to restore the good ol'days...

He is as deluded as those that he decries.... 

Fri, 01/24/2014 - 18:54 | 4364724 tickhound
tickhound's picture


"The thing about Santelli is that he thinks that the "free hand" is all that is needed to restore the good ol'days...

He is as deluded as those that he decries.... "

Welcome back to detox.


Fri, 01/24/2014 - 16:50 | 4364167 TheSkipper1967
TheSkipper1967's picture

Come on 300 points down.  Go Go Go

Fri, 01/24/2014 - 17:06 | 4364238 rbblum
rbblum's picture

Santelli had best be careful . . . very careful. . . . because the day may come when the vast majority of his audience may actually believe what he says as being what it is: accurate and truthful. 

Fri, 01/24/2014 - 18:24 | 4364637 BadLibertarian
BadLibertarian's picture

I wonder when the public at large is going to realize that the only difference between Madoff and the rest of the financial industry is that he just ran out of runway sooner.

Fri, 01/24/2014 - 19:02 | 4364743 Oldwood
Oldwood's picture

Nah, Madoff was simply greedy. many of the fucks running the economy are true believers. They will be willing to burn the whole house to the ground to prove a point.

Fri, 01/24/2014 - 18:32 | 4364662 yogibear
yogibear's picture

Yellen, Evans and Dudley are out to prove him wrong. They will crash the US dollar.

Fri, 01/24/2014 - 18:47 | 4364707 More_sellers_th...
More_sellers_than_buyers's picture

I love Rick and I think I agree.... But dafuq? de he just say???????

Fri, 01/24/2014 - 18:55 | 4364728 Atomizer
Atomizer's picture

Nice job Rick Santelli. Always enjoy your insightful commentary.  Margins are no different than a person depositing money into the bank. You’re just scratching the surface on the root problem, please continue to expose. Thanks.

Fri, 01/24/2014 - 19:00 | 4364741 Winston Smith 2009
Winston Smith 2009's picture

Every time we have one of these dips, the mainstream financial media begins to recognize that the emperor has no clothes, but then central banks take measures to extend and sustain the illusion.  When I hear someone on CNBC saying what Santelli just said, I suspect that we are getting much closer to the end of their ability to "extend and pretend." Good.

Fri, 01/24/2014 - 19:17 | 4364780 gravedestruction
gravedestruction's picture

Did he say something about fairy ducks?

Fri, 01/24/2014 - 19:46 | 4364863 pFXTim
pFXTim's picture

boy, refigerators, cannonballs, fairy dust...I'm sure glad Santelli cleared this all up...

Fri, 01/24/2014 - 19:50 | 4364878 batterycharged
batterycharged's picture

Santelli is a monkey puppet of the uber rich.

And his opinions are moronic.

Fri, 01/24/2014 - 19:51 | 4364887 jomama
jomama's picture

i love the smell of controlled opposition in the morning.

Fri, 01/24/2014 - 19:52 | 4364889 fijisailor
fijisailor's picture

Bulldike bucks in 3...2...1...

Fri, 01/24/2014 - 20:05 | 4364915 pot_and_kettle
pot_and_kettle's picture

drudge linked to this through zh

Fri, 01/24/2014 - 20:31 | 4365017 jomama
jomama's picture

that website sucks.

Fri, 01/24/2014 - 22:09 | 4365285 pot_and_kettle
pot_and_kettle's picture


that website sucks the least.


Fixed it for you

Fri, 01/24/2014 - 20:16 | 4364957 Pumpkin
Pumpkin's picture

LoL!  Rick knows a little more about the markets than the average Joe.  It is more simple to say, there is a HUGE bubble being blown.  Dancing around that huge bubble is exciting and fun (and makes you money).  But after a long while, the bubble is so big and so fun, it begins to look like a danger.  And after it gets to be so huge, people start to worry, what if it popped.  It might just blow shit down for miles and miles. 

Fri, 01/24/2014 - 20:29 | 4365004 ebworthen
ebworthen's picture

When are the drive by down voters going to say something refuting Santelli's clear argument that the markets are nothing but a FED cotton candy fluffed Ponzi scheme?

Fri, 01/24/2014 - 20:28 | 4365007 arby63
arby63's picture

Fed trolls are out in full force tonite!

Fri, 01/24/2014 - 21:14 | 4365115 fuu
fuu's picture

Just common Drudgites.

Fri, 01/24/2014 - 21:02 | 4365083 “Rebellion to t...
“Rebellion to tyranny is obedience to God.”-ThomasJefferson's picture





Rick is a very bright guy.......... but he's way off on this one!

This market is going to go much higher before the massive correction.

Keep the powder dry and don't go all in on the market meltdown drama.

Fri, 01/24/2014 - 21:40 | 4365198 Atomizer
Atomizer's picture

Since your such a fucking genius. Kindly explain to the world, why other countries are getting looted by their banking accounts to repay CB’s? Then expand on why this will never happen the United States of America. Let me guess your answer, FDIC.

Money Confiscation Legal?

Fri, 01/24/2014 - 23:04 | 4365445 “Rebellion to t...
“Rebellion to tyranny is obedience to God.”-ThomasJefferson's picture

You're, not your, very emotional.

All I said was Rick is a very bright guy.


The market goes up.  The market goes down.

Just because Rick Santelli said what he did, does not mean the world is coming to an end just yet...... Unless you put a bullet in your bird brain, you fucking asshole.

The market is full of liquididity, and has a lot of room to run higher.  Not forever, Atomizer, you f'tard.

When the correction comes....  The correction that Rick Santelli alludes to, beware!  Just don't bet on the end of the world next week.

The greatest country in the history of the world, the USA, may have a stock market bull run for years to come, with the money in the system.

Sat, 01/25/2014 - 00:14 | 4365630 ebworthen
ebworthen's picture

The greatest country in the history of the world has been sold out.

That's why some of us get so angry; a once great thing full of promise was looted, windows broken, then torched.

Tell me what is so great about the U.S.A. today?

Sat, 01/25/2014 - 00:31 | 4365672 Atomizer
Atomizer's picture

Thank you

Sat, 01/25/2014 - 12:03 | 4366572 jerry_theking_lawler
jerry_theking_lawler's picture

Hey Jackass...while you are being the grammar police you forgot to proof your own comments...what is 'liquididty'? Is it akin to stupididty?

Fri, 01/24/2014 - 21:15 | 4365125 Meremortal
Meremortal's picture

You gotta love this place. Multiple claims as to what is happening, all accepted and touted as correct, even though most of the takes conflict which each other.

And serious offerings and discussions of charts put up by Tyler Durden, which seems odd given that charts derived from a manipulated fake market are useless by definition.

On the plus side, it was a damn good day to be short the S+P.

Fri, 01/24/2014 - 21:28 | 4365165 grunk
grunk's picture


Marijuana cash is going to save the banking system just like heroin cash has.

Fri, 01/24/2014 - 23:34 | 4365518 Duude
Duude's picture

Everyone should have known the transition from QE to taper would not be smooth. The market didn't rise as far as it did on earnings.  QE has provided the octane for this ride. Earnings have improved for the vast majority of companies on the back of less labor producing more revenue per employee. That means more long term unemployment.  Since the world economy is still in a funk after 5 years, there's no way to even maintain what we have. Now we're going to taper QE which means interest rates must rise. Higher interest rates mean more government spending to service $17T in debt. It also means higher mortgage rates in a real estate market that can only be described as a being in 5 year depression. Now lets throw Obamacare into the mix and see middle America cut out other things to manage higher healthcare expenses.  Face it, we're stuffed! 

Sat, 01/25/2014 - 00:56 | 4365721 Spankrupt
Spankrupt's picture

When the GDP prints negative and the true unemployment story is told then we will see real prolonged downturns in the capital markets, until then most won't understand the prolific negative nature of money printing, even the Central Banks.

Sat, 01/25/2014 - 01:23 | 4365773 KingTut
KingTut's picture

I mean, I love Santelli.  But WTF is he talking about?

I did get something from it: the CB's don't belive in the recovery they've engineered.  They reveal their doubts in their actions, which is pretty profound.  The markets will eventually pick up on their lack of confidence.  

It is obvious that the CB's are doing things that absolutely must stop in the future.  But what if the symptoms of recovery they are waiting for, never appear?  Will they stop and face the music (or lack of it), or will they just print until someone throws them out of office?


Sat, 01/25/2014 - 06:56 | 4366146 GFORCE
GFORCE's picture

The biggest short squeeze is about to build. Long equities 2014. 

Sat, 01/25/2014 - 09:25 | 4366337 kenezen
kenezen's picture

It's wise to recall that America has very little to do with global "Production"   We are however investors and currency participators. We are also primarily "Consumers" which make up the other side of the market. Production and Consumption! Our currency is at risk globally as the Chinese press and the BRIC markets have trunpeted. We have vitually no Industrial production and export of MFG. Goods other than agriculture and Fuels. We're in deep DO-Do! Our international companies are doing good although they are ready for a correction in stock prices of perhaps 20% because of weakening Global Consumption. Except for our energy and agricultural goods we suck in MFG. 1600 area initially on the S&P perhaps first Quarter.   

Sat, 01/25/2014 - 10:26 | 4366412 blindman
blindman's picture

why is mr. market realising this just now?
i thought mr. market was supposed to be smart,
and just now in this short time frame he is
realising what has been yelled from the
roof tops for the last 5 years?
seems to me mr. market is a very slow learner
and cannot be trusted ever.

Sat, 01/25/2014 - 10:40 | 4366435 Smiley
Smiley's picture

And in breaking news The Federal Reserve has instructed all banks and brokerage houses to have their portfolio managers place their fingers in their ears and chant "La La, I can't hear you!"

Problem solved. 

Sat, 01/25/2014 - 13:00 | 4366722 falak pema
falak pema's picture

when a Nobel for Economics disagrees with this post : Rogoff Davos - Business Insider

Sat, 01/25/2014 - 14:26 | 4366926 blindman
blindman's picture

@."Obviously, it's not a great thing that your debt is going up, but there's not a lot you can do about it when unemployment is really high, when the financial system is weak, when private banks are failing. That remains true: It's a concern, but it's something that has to be addressed over a very long period."
a long period, long enough for the creditors and
debtors to all kick the bucket, that kind of
long period.
the elite are steadily accumulating the recovery
and see no advantage to employing, investing or
speculating any further. why take the risk when
the central banks just empty the treasury into
their accounts.
i don't see it as a taper or a change so much
as a recognition that there is nothing left to
steal, then they will move on, somewhere?
why he never discusses the logic
and fundamental significance of fractional reserve,
debt based federal reserve notes/system as a systemic
financial crime scene?

Sat, 01/25/2014 - 19:47 | 4367442 falak pema
falak pema's picture

'Cos economists DON'T debate the POLITICAL givens; aka the Banker's rule of compound interest as time variable return on disseminating debt, and their role as debt multipliers of FREE money dissemination.

Lets face it, its the LEGISLATORS that allow capital to be disseminated on those terms since it was invented in Venice. 

Apparently our nation state governments consider this exorbitant privilege KOSHER! 

Don't blame the economist for that they have to live with it as its cast in STONE. 

Keynes tried to get around that loop by making Government active as OTHER source of investment other than the Private sector loop, the one that brought the economy down in 1929 hubris.


Now post Keynes, government has stepped in more and more since WW2, and I'm not saying its better but there were two voices of capitalism; until Reaganomics fusioned them back into ONE monopoly via G-St revoke and the Squid's takeover as monopoly player.

Now Congress is crony and on bended knee to the moneybags of 85 people et al. who are richer than the 3.5 billion sheeple. 

These policy shifts don't occur by chance. All this is planned in advance to turn back wealth creation to an elitist exercise with minimal obligatory sharing via wealth spreading thru social and tax programs; something that FDR/Keynes encouraged. Something that democracy requires, but its a question of living within your means.

Sat, 01/25/2014 - 19:52 | 4367479 blindman
blindman's picture
[KR554] Keiser Report: Endless Fiat money supply
Posted on January 25, 2014 by Stacy Herbert

Do NOT follow this link or you will be banned from the site!