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