Santelli: "'Things Would Get Done' If It Wasn't For The Fed"

Tyler Durden's picture

Reflecting on the divergence between equities at all time-highs and drastically sliding bond yields, CNBC's Rick Santelli reminds that it seems bonds recognize that business cycles work in "fits and starts" and not in straight-lines as some (equity bulls) would believe and reminds (as we noted previously) that with revisions, Q1 GDP could be negative. His discussion moves from US Treasury 'cheapness' relative to global bonds and the 'weather' effect's over-exuberant expectations; but it is his final topic that raised an eyebrow or two. Santelli doesn't buy into the meme that "the reason the Fed is doing all this is because Congress does nothing;" in fact, he exhorts, it's the opposite, if the Fed wasn't hunkered down supporting the stock market - and stocks started throwing little hissy fits (a la TARP), it would send signals... and things would get done!"


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IridiumRebel's picture

Rick "No Shit Sherlock" Santelli nails it again....

CrashisOptimistic's picture

No he didn't.

He said if the Fed would stop acting, mommy
Congress would act.

He wasn't saying laissez faire capitalism. He was just talking about a different source of influx.

101 years and counting's picture

(a la TARP).  ie, banks get bailed out from the left pocket (congress) instead of the right pocket (fed)......

Xibalba's picture

monetary policy is the panacea.  MOAR!

Battleaxe's picture

No worries here since I'm TBTF. At least that's what my wife says!

Keyser's picture

Santelli / Farage - 2016...


IridiumRebel's picture

We are fucked either any thoughts on oil? Seems your best stuff....

CrashisOptimistic's picture

My interest in oil is not connected to trading or the price.  That's all pointless as death approaches.

DoChenRollingBearing's picture

CiO, I have long followed your oil comments as well.  What are some investments that you do like?  What are you doing re the ominous future you see?

Condo-dwellers Bearings cannot store crude oil, that's why I hold gold.

What else should we be thinking about?  Those of us who cannot farm...

CrashisOptimistic's picture

You have to farm in a future of devastation.  Or you have to pay people room and board to farm your land.

It is possible to buy farmland from people and have them sharecrop it as tenants.  You just have to be sure they'll let you onto your land when you have to flee the cities. 

Gold won't do you any good then.

And remember, there doesn't have to be an answer.  You could live or die by pure chance.

magnetosphere's picture

fail.  heat engines are more efficient than physical labor, and it's not even close.  show me the horse that can convert 40% of the calories in oats and hay to useful work.  or the person that can do more useful work than the total calories he consumes, since a meat diet contains substantial embodied energy.

Keyser's picture

Not all places on the planet will be effected equally by the collapse... There are still many agrarian societies based on barter / local currencies that will still hold value... The US will be ground zero for the zombie apocalypse, but places like Costa Rica, Panama, Nicaragua, Philippines, Malaysia, Thailand, Cambodia, etc. will survive... You do not want to wait until the event to plan your exit... As always, follow the 7-P's...



magnetosphere's picture

those places will be pillaged for their resources by people with more advanced methods of war.  see all of recorded history.

The_Ungrateful_Yid's picture

Nah...I have more fun thinking about hitting the bong.

Aknownymouse's picture

Santelli for FED chair. He is also better looking than the current chairman.

Aknownymouse's picture

Seriously. If we must have a FED, why not place a common sense trader as chairman instead of all those theory only university professors who know nothing about real life.

Tasty Sandwich's picture

Anyone who actually has a clue wouldn't want that job at this point.

SumTing Wong's picture

I've got a theory...

TPTB put a half-black man into political office for when the SHTF politically, and a half-woman into as Fedhead for when the SHTF economically. So....I'm long bullets, bullion, and beans (not to mention arable farmland, animals, and the knowhow of making those into stuff to eat).

NDXTrader's picture

You could extend that argument to almost every private and public institution in this country. In modern day life, a piece of paper from the "right" school and a seal from the establishment has superceded actually accomplishing anything in your chosen field

V in PA's picture

current chair'man'. Hah! I see what you did. ;)

Dr. Engali's picture

It's not just the stock market Rick. If we had real rates instead of the repressed rates that we have then now the idiots in Washington would have had an oh shit moment if suddenly their ability to spend was balked at by the bond market.  Of course it's too late by now because any rate rise above 3.5% will blow up the system.

TheRideNeverEnds's picture

But Rick, things ARE getting done, buying e-minis up every day is a thing....


Speaking of which, they are down a whole two points right now, BTFD!

what's that smell's picture

immigration reform? what does immigration reform have to do with wall street, the FED, and "hunkering down in the stock market"?

smells like racism.

The_Ungrateful_Yid's picture

Just another title for every illegal to come here to join the free shit army as long as they vote via fake ss to keep the powers to be in power.

NDXTrader's picture

Cheap labor for our corporte overlords?

fonzannoon's picture

damn this 10y just ticked 2.599.

RSloane's picture

"2.7 by 8:35am tomorrow am" Quick, get out your pompoms!

fonzannoon's picture

yeah this still feels like a trap. i would be taking the other side of this move downin yields, but just for a short term move.

CrashisOptimistic's picture

Very possible, given that orders to polish that number tomorrow were given within 1 minute of the 0.1% report.

Flakmeister's picture

The game is over and winding down, Fed or not...

The 10 year going to 5% would collapse the economy faster than shit through a goose...

fonzannoon's picture

the 10yr going back to 2% with this crazy grandma yelling that she sees growth would collapse the economy pretty damn fast too.

Dr. Engali's picture

Here have a cookie and soon you'll be right as rain:

RSloane's picture

LMAO The youtube right ahead of that one was "Bigfoot throws logs at campers", which is more believable than true growth in our economy at this time.

CrashisOptimistic's picture

Bigfoot bats left, throws right.

CrashisOptimistic's picture


Down is the direction.  Societal descent.

A descending society doesn't demand loans.  If waits for govt cheese.

If there is no demand for something, it's hard to raise its price.  Interest rates can't rise.  When the elderly of the world see that, they rationally seek safety.  That has always been bonds.

Down is the direction.

hobopants's picture

Kind of weird when you consider they are lending to the entity that cuts their social security checks. Out of one pocket and back into the other.

RSloane's picture

"I see growth in that .1% print" ~!

fonzannoon's picture

I just heard someone on the teevee say that 33% of obamacare enrollees have not paid their premiums.

CrashisOptimistic's picture

That's cuz they didn't want to take their money out of bonds and lose out.

Grande Tetons's picture

Let us say the 10 year and 30 year pancake to 1 percent...the SP gets torn a new asshole. I wonder if that will wake people up? Nahhhh. 

CrashisOptimistic's picture

It probably would wake people up, but because people aren't relevant to HFT combat, it doesn't matter.

RSloane's picture

Yes, but they mean well and that's all that matters!

PAWNMAN's picture

You mean we have to pay for Obummercare?!?  Oh, and whats a "premium"?

Son of Captain Nemo's picture

Let's add to that sentiment Rick with what makes business and the rule of law hum and sing when it is allowed to operate unfettered as Senator Markey "Mark" and others like him who ironically took an oath to protect and defend "it"...  Isn't there an upcoming Constitutional Covention to ratify the NDAA coming soon???....

I'd say this is an indication that the good Senator and his colleagues just like Mr. Turchynov's installed government in Ukraine are feeling the heat if they don't succeed and the people start going hungry and are looking for excuses to lay into the source of their problems....

Kinda puts the "Civil" in Civil War!

stinkhammer's picture

cnbs is stupid; how does any sane person work there?  santelli credibility wanes due to his employer 

LawsofPhysics's picture

I don't think Rick really understands sustainability. Growth you say?  Growth in what asshat?

Real capital requires that real work is done.  Doing real work requires consumable energy.

If you think the latter can "grow" indefinitely in a closed system (without killing lots of other organisms), well, then I have some financial "products" of mass destruction for sale that you should consider.

hobopants's picture

Yep, economists would be better off studying ecology if they wanted to truly understand how closed systems operate. The beauty of a free market is that it operates on the same principles as a natural system whereby a lack of energy is buffered by the efficiency of energy recycling created by diversity in the system. Adapting to the environment rather than trying to force it into producing some idealized outcome via clumsy adjustments to inputs and outputs