Rick Santelli Summarizes The Problem: "It's The Government"

Tyler Durden's picture

While the guests on Friday's CNBC closing bell were giddy with excitement about earnings, US stocks, and 'the recovery' being "a lot stronger than people give it credit for", Rick Santelli asked a simple question, if it's all so great why is the Fed still printing billions of dollars each month? A disquieted crowd of asset-gatherers attempted a response but made the mistake of uttering the most inflammable 7 words Santelli could hear... "Where would we be without the government?" What ensued is worth the price of admission...


Who is the government (or the Fed) working for?


The guests exchange pleasantries as the "asset managers" explain how 'anecdotally' it's so awesome out there..and Rick explains his perspective on the Fed...

Guest: The underlying economy is a lot stronger than people give it credit for...


Santelli: Then why don't we end all the Fed programs? If that's true, why do we have this ongoing debate [over taper or no taper] forever? Even at the current pace of $10 bilion a meeting, we're still going to be left with $5 billion of purchases at the end of the year... End it now!!


But then we fast forward a little to the real deal...

Guest: Where would we be without the government?


Santelli: (begins)... We would be way better off! The problem is the government. They're not here to help... They're here to make healthcare more expensive, college more expensive... everything they touch is more expensive...

and then it gets good...

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kaiserhoff's picture

We need an opposition party.

Not to the Dims, but to Tyranny.

max2205's picture

The dems and rhinos are doing their best to minimize the tea party

Good job folks

knukles's picture

According to 93.4% of the Evil Feasting off the Teat of the Beast, The Big Hokum, Comprised of Mass Murder and Debauchery is Just Fucking Hunkie Dorrie.

Duke of Earl's picture

Count me in on the debauchery is Just fucking hunky dory crowd.

knukles's picture

Talkin' about debauchery, does anybody in the Ukraine know where their gold is?

fonestar's picture

Santelli is like the best poo in the factory.  Or however that thing goes....

Chupacabra-322's picture

There is no "Government", only in name. What we do have is a Chartered Criminal UNITED STATES, CORP. INC.

new game's picture

a corp joined at the hip in bed with policy makers, judges, and high finance.

we have a combo plate of fascism, and socialism under the guise of capitalism. fucking period.

tic toc...

James_Cole's picture

The fed is a totally unaccountable mostly private institution in charge of banking oversight, perhaps thats part of the problem?

Let me issue and control a nation's money and I care not who writes the laws.

BLOTTO's picture

Seriously, what the fuck is going on on this planet?

NoDebt's picture

Could give a complicated answer but let's go straight to the core:  MASSIVE CORRUPTION.  When it is finally revealed, years from now, everything that has been going on the last few years, it will make even the most hard core ZH'er blush.

Chupacabra-322's picture

Again, you're using the wrong "C" word. STOP using the word corruption. It's beyond corruption. It's CRIMINAL!

BLOTTO's picture

I agree with both your points...but im at an even deeper and darker place than that.

Its impossible for the human race to be this unlucky in nature...impossbile. Unless - our life has been rigged.


Criminal and corruption = evil.

Chupacabra-322's picture


I've followed your posts brother. Believe me whaen I say that I'm in that "darker" place as well. These Criminal Meglomanic blood lines are Pure Evil.

MontgomeryScott's picture

Well, kids...

I just printed this chart and put a ruler on it, to see when the spike in corporate profits began. There was an event, a catalyzing event, like a 'New Pearl Harbor', that COINCIDENTALLY ALSO occurred right about then.

GEE. I wonder who benefitted?

The rug was pulled from the jobs numbers shortly before ANOTHER event in recent history, as well. 'Housing Crash', anyone?

Four chan's picture

a constitutionally limited republic,

verses a democracy


is becoming abundantly clear, and which the framers gave us and why.

StychoKiller's picture

Some have postulated that we're really inside a computer simulation program...

Disenchanted's picture

If you haven't already, read The Holographic Universe by Michael Talbot sometime.

It bent my mind.

jerry_theking_lawler's picture

It's not criminal if you create the laws...on a whim.

KickIce's picture

Bastards better not win, otherwise history will be rewritten to show how the bankers and politicians saved the world.

SgtShaftoe's picture

It appears to be a global revolution.  Venezuela, Ukraine, et al. 

pigs-n-space's picture

Its only getting started. I would say buy mid summer the wheels will be comming off the wagon. 

TruthInSunshine's picture

As some/a few of you know, I went short last week, and I will stay short. This is the opportunity of a lifetime on the short side.

I attended lunch with the wise men today and have never been more confident that the'now epic bubble market has no foundational support, and that it will be liquidated faster than the CBs can even react once its pricked given the record margin debt baked into it, than any market/bubble we've witnessed in any of our lifetimes - bigger than the dot.com bubble, bigger than the housing bubble of 2007...

...truly encroaching upon 1929 to 1932 territory.

Not shorting this market is like looking a gift horse in the mouth.

Facebook acquiring WhatsApp for 19 billion Bernanke Bucks won't be attributable to the cause, in any way, of this ginormous bubble bursting, but it will be remembered as the moment of the near top tick, as every such bubble popping is characterized by such an act of lunacy.

t0mmyBerg's picture

Well said.  I have been thinking  as much recently about the abjectly silly things going on and have been very very very patient about getting short.  For the first year in many i was not short last year.  Like a moron I was not long either.  For now I still think some patience is required.  I really think the time will be in later spring as it usually is.  There is alot of money coming in over the next few months to drive stocks higher.  Late March, or April or May.  Then the deluge

As for magnitude, yeah it could be absolutely enormous.  By some measures we are worse than 2000 (like price too revenue or something I forget which metrics).  I also think it may result from a lack of confidence in Yellen.  I watched her House testimony.  I was not impressed.  If confidence goes, watch out below.  No idea why it hasnt already

ISEEIT's picture

So lot's of proven to be smart players are doing what you've done. I get that. Anyone with a functional mind understands everything screams fraud, ponzi, insane bullcrap.

Wenzel at EPJ is not an idiot. The guy has called so much correctly and is an honest actor. He calls for a major commodities boom just over the short term horizon.

How do we get a hard fall and a commodities 'boom' simultaneously? Capital out of bullshit markets into real material??

I'm admitting to ignorance and hoping you might provide me a clue?

TruthInSunshine's picture

My strategy pays off whether we see a slow drip, downward decline, or massive crash - I'm confident enough to employ a bear put spread.

The numbers I'm seeing on revenue, margins, capex, etc. do not lie, and they are nothing short of gut wrenching.

Wait until the headlines in trade publications start to rain down about how defense contractors, who are no shrinking violets in terms of the circle of power politics, graft & corrupting government officials, politicians & agencies, are about to be cut to the bone in terms of military contracts as a result of what is now a done deal on massive shrinkage of the military complex over the next decade (it's a done deal no matter what the MSM may declare - it's already carved in stone).

So why would a sacred cow, representing one of the 3 sacred cows of American Budgetary Excess since the 1980s, be on the chopping block now? Because even the most tied-in insiders knows it's all unsustainable, and wait until you see the parlor tricks they're about to unveil regarding entitlements (again, out of necessity).

The last 4 years of GDP growth have been spurned by the taking on and restocking of massive piles of debt by corporations (selling bonds & buying stock back), governments (in every way imaginable) and consumers (U.S. onsumer debt is now at 3 trillion dollars, a new nominal record, and especially so given wage-to-debt ratios).

You will be reading about all of what's already been decided upon & is being implemented by the inner sanctum that is trying to stabilize the country (and much of the G8) over the course of the next year, and the articles are already starting to appear.

Real Estate Geek's picture


Wait until the headlines in trade publications start to rain down about how defense contractors, who are no shrinking violets in terms of the circle of power politics, graft & corrupting government officials, politicians & agencies, are about to be cut to the bone in terms of military contracts as a result of what is now a done deal on massive shrinkage of the military complex over the next decade (it's a done deal no matter what the MSM may declare - it's already carved in stone).

That's probably why "our" government has been trying to get a war going.

CrazyCooter's picture

I don't invest as I have been deleveraging for the last several years. I hope to be 100% free and clear in about 12 months, but we will see how that works out. Then I am going to buy an old truck with a cauburator that I can drive for another 40 years. Then, I might have a dog in the hunt ... but, that said ...


... and the articles are already starting to appear.

I would be curious if you don't mind sharing some links, given what I quoted above. I have been wrong, wrong, and more wrong with timing, expecting this to blow up years ago. Amazingly, it just kept going on and on and on. I just try to read, learn, and understand the game.



A Nanny Moose's picture

If nobody has any money, from whom will you collect, when this sucker blows? What are the risks of being Corzined?

StandardDeviant's picture

If his put spreads are on US equities (or ETFs, or indices like SPX or RUT), then he'll collect from the Options Clearing Corporation.  Not that there's absolutely no counterparty risk, but even in the darkest days of 1987 and 2008, all option contracts were honoured.

Ranger4564's picture

Since you asked so nicely Mr. Blotto:

Slow Motion Coup d'etat and return to Feudalism.

Trust noone, prepare to fight !!!

Offthebeach's picture

Yeah but its American Fascism. You want a free POS t-shirt? Hows about a logo pen or hydro lard cake for the fat kid.?

Chupacabra-322's picture

Oh, almost forgot. A FASCIST one at that.

Dick Buttkiss's picture

It began with this experiment:

The UNITED States of America

It will end — and begin again — with this experiment:

The UNTIED States of America

And in following the world's lead (Ireland, Spain, Ukraine, etc.), we will lead it by untying the knot of the nation-state per se, its last great hope going down in a heap and swept, at long last, into the dustbin of history.

snr-moment's picture

$566 today.  I'll send you my e-mail when it reaches 10.  And, good luck.


Oh, and to the idiot debating Santelli, I just got back from  down south.  Tourism from South America to the carribean is drying up.  They're in a panick.  Great economy I guess.

snr-moment's picture

Oops. I meant 483.  And $5.

Stoploss's picture

In the east, yes. In the far west, not so much.

Funny, the little brown haired one with no hair on his ass, first thing out of his mouth "we need to invest more in the schools."  LOL!!!

There are already billions an billions going in from the government, but if we invest moar, that will fix it!

jcaz's picture

Amazing Santelli hasn't been droned yet-

Stay low, Rick....

FEDbuster's picture

More likely to be "Breitbarted" late at night on his way home.  "High strung" CNBC reporter has heart attack at age 61.......

KickIce's picture

I figure the only reason he hasn't been dropped is because otherwise CNBC viewership ratings would go from suck to really suck.

Groundhog Day's picture

What a joke, education starts at home with parents.  All the resources are available for free online to educate your children.  My kids aren't geniuses however i have structure in the house.  No TV Mon-fri, No PS3 Mon to Fri, Computers and tablets are only used for research Mon - Fri on the Dining room table where i can see what they are doing. 

They get straight A's but i remind them of a famous Mark Twain quote

"I Never let my school get in the way of my education"

Critical Thinking Bitchez - Thats what the schools are taking away 

KennyW's picture

As a teaching professional, I salute you.

thamnosma's picture

RIP Harold Ramis (re: Groundhog Day)

SgtShaftoe's picture

Got Homeschool?

What children are reading philosophy in the 4th grade?  Shit, what school kids are reading philosophy at all?

new game's picture

what kids are reading? listen to i-tunes or tb...

school sucks - i hated it, like jail...

i learned more learning what interested me...

KickIce's picture

They're not reading much of anything, but in some states elementary aged kids are watching movies on how we should accept the LBGT community.