Jim Bianco Rages "The Recovery Ship Sailed", Bashes Big Govt Believers, Slams Greek Risk 'Deniers'

Tyler Durden's picture

"Today is Day 1 of Year 7 of the 'recovery', and yet economists everywhere proclaims 3% growth is just around the corner," rages Jim Bianco as he addresses what 'bugs him', exclaiming "that ship has sailed." Bianco and Santelli go on to slay Keynesian big government dragons and the incessant bullshit from officials like Jack Lew who opine on Greece and other potential systemic risks as being a non-event - "what is priced in is that everything will work itself out at the 11th hour," leaving a huge asymmetric risk.


Well worth the price of admission...


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cowdiddly's picture

Actually, its year eight, but whos counting. Just keep on believin

Mister Ponzi's picture

The bottom will be in once the headline reads "Matt Bianco" instead of "Jim Bianco".

JustObserving's picture

Please - all the growth that the US generates is by fudging inflation data:

Let's not forget that US inflation numbers are completely fake - so real US GDP is much, much lower:

The Chapwood Index for 2014 was 9.7% and official CPI in the land of the free was only 0.8%.  So the Nominal GDP of 5.6% for 2014 becomes real GDP of -4.1%.

The revised real GDP for years 2011 to 2013 worked out to -6.2%, -6.5%, -6.5% respectively.

What is the Chapwood Index?

"The Chapwood Index reflects the true cost-of-living increase in America. Updated and released twice a year, it reports the unadjusted actual cost and price fluctuation of the top 500 items on which Americans spend their after-tax dollars in the 50 largest cities in the nation."


The 1.26% inflation measure used to deflate first quarter nominal GDP is unrealistic, as Americans who make purchases are aware.

A reasonable correction to the understated deflator gives a much higher first quarter contraction. The two main causes of inflation’s understatement are the substitution principle introduced during the Clinton regime and the hedonic adjustments ongoing since the 1980s that redefine price rises as quality improvements. Correcting for excessive hedonic adjustments gives a first quarter real GDP contraction of 5%. Correcting for hedonic and substitution adjustments gives a first quarter real GDP contraction of 8.5%.

Realistic economic analysis is a rarity. The financial press echoes Wall Street, and Wall Street economists are paid to help sell financial instruments. Gloomy analysis is frowned upon. Even negative quarters are given a positive spin.


KnuckleDragger-X's picture

If a number can be bent, it will be bent. They keep on changing the rules, but the tide stubbornly refuses to recede.......

yrad's picture

I shut her down at 0:32 when he said "no recession"


Baa baa's picture

Stats, like bikinis, reaveal very interesting information. What is concealed? Well.......

City_Of_Champyinz's picture

And given that the 'official' unemployment rate is at 5.6%, which is basically 'full employment', all of the statistics are complete and total bullshit.  How anyone says with a straight face that the economy is improving while the number of businesses closing is higher than the number of new businesses opening for the first time in 35 years is beyond me.  I guess I am just not a good enough liar...

JustObserving's picture

Here is you real unemployment:

Every statistic about the US economy is now a lie as David Stockman looks at 5.5% unemployment:

At the present time, there are 210 million adult Americans between the ages of 16 and 68—to take a plausible measure of the potential work force. That amounts to 420 billion potential labor hours, if we accept the convention that all adults are at least theoretically capable of holding a full-time job (2,000 hours/year) and pulling their share of society’s need for production and work effort.

By contrast, during 2014 only 240 billion hours were actually supplied to the US economy, according to the BLS estimates. Technically, therefore, there were 180 billion unemployed labor hours, meaning that the real unemployment rate was 42.9%, not 5.5%!



Perimetr's picture

The recovery ship was scuttled long ago.

Soul Glow's picture

Greece is fine!  And if it isn't the central banks will print trillions of dollars and euros and then everything will be super duper fine!


KnuckleDragger-X's picture

The band is playing a catchy little number, so let's dance while they re-arrange the deck chairs.....

Dr. Engali's picture

Can we please stop acting like we've had some kind of recovery since 2009. Sure stawks are up but we still have record amounts of people on people on SNAP, full time work is impossible to find thanks to Zerocare, and we have moar debt than we've ever had. The whole recovery meme is a lie.

Eternal Complainer's picture

That was the stubborn central bank narrative and by hell or high water thats what its going to be! Dammit!
And it doesnt matter who has to die or what gets destroyed!
Its a recovery and the fed is on the runway ready for take-off.
They just need to first smash gold below $1000 and silver below $10 to prove iits all real and then its back to more QE and NIRP because of unforeseeable events that nobody could have seen coming!
Get it?

Baa baa's picture

Kinda. By devaluing PMs, a safe haven is removed? Does that drive safety seekers to bonds? It just seems that today, equities are regarded as a fool's endeavour. I guess I am not certain how the effect of PM price destruction will play out in favor of this fiat crap being printed.

At $10.00 an ounce, you would think buyers would beat down the doors for that deal. Can Morgan Stanley et al keep this manipulation going on indefinitely? I'm a little confused by all of these sudden financial rules being implemented.

AGuy's picture

"Can we please stop acting like we've had some kind of recovery since 2009. Sure stawks are up but we still have record amounts of people on people on SNAP'

Well, post 2009. the rate of decline slowed. From the Summer of 2009 to ~June 2009 the economy was almost in free fall. The best analogly I an think of is it started with a leap out the window, but managed to grab a rope before plunging into the pavement at terminal velocity. However the rope is frayed and is in danger of snaping, which would continue the freefall  plunge in to the pavement.

This Fall could turn into another Lehman momement. I suppose it depends on what happens to the other PIIGS (Portagual, Italy, Ireland & Spain). Will Greece's meltdown be contagious to the rest of the PIIGS in the next couple of months?  If Greece is somehow contained, then perhaps a broader meltdown will be delayed to 2016 perhaps 2017. Its possible that the ECB may go full broard QE to avoid the rest of the PIIGS  from melting down this fall. China is another wildcard, But I think if the EU avoids a meltdown this fall, China can probably post-pone its meltdown another year. The US can limp along another year,as long as the rest of the world doesn't meltdown.


"we have moar debt than we've ever had. The whole recovery meme is a lie."


US debt has not moved in 15 weeks. The lie is going from soft cover up, to altering publically accessible data. Welcome Winston Smith at the ministry of truth!


lehmen_sisters's picture

The recovery ship is a 1946 8' Dingy sitting at the bottom of a pond in the Ozarks.

cowdiddly's picture

Hey You, Get away from my wreakage from the boating accident.

shovelhead's picture

Bianco is naughty.

He used the D word.

LawsofPhysics's picture

LOL!!!  What product of real value do these asshats actually produce again?   I find it ironic when these fuckers bash the very same government that saved their asses in 2001 and then again in 2008/2009.  The very same governments that keep all their paper wealth inflated while stealing from us all.

Fuck em.

Thisson's picture

Allocating capital is the most productive job there is in a capitalist economy.  Of course, it would be nice if we had one.

jimfcarroll's picture

Look at that. Santelli is still on CNBC. After his rant back in '09 that practically single handedly started the "Tea Party" movement, I wanted to vote for him for president. I would have thought liberal CNBC would have tried to dump him just for that legacy.

Needless to say, I haven't watched CNBC in a while.

EDIT: For those that don't remember: https://www.youtube.com/watch?v=bEZB4taSEoA

Cruel Aid's picture

true, im so jaded i wonder how it is possible that anything nbc can have anything pro america, as it was intended, on the air.

hard to trust anything at this point

Joe_in_Indiana's picture

To only get Rick Santelli, I go to the CNBC website and search "santelli" for the videos that get posted.

I do NOT turn on CNBC. I ignore all their other blather. You get some great interviews by Rick doing it this way.

BUT, he only gets 3 minutes. He generally needs 5-10 minutes to just give the overview.

It is a real shame!

I believe he is getting a rich salary to stay to be the "Cassandra" on the network. But "Cassandra" have been more right than not.





CHC's picture
CHC (not verified) Jul 1, 2015 11:22 AM

I have a lot of respect for Rick Santilli.  I actually believe he's the only person on CNBC that inhales just oxygen. 

Toolshed's picture

"I have a lot of respect for Rick Santilli.  I actually believe he's the only person on CNBC that inhales just oxygen."

It's more like NO2 actually.

Yen Cross's picture

 We aren't even a 2.00% economy. lmfao

Quinvarius's picture

Not to be a dick, but Geece is a non event in the electronic price matrix.  The economy sucks.  That has nothing to do with the matrix.  Greece could default and its bonds could rise in price if some central bank decides they are going to buy up all that garbage.  There are no consequences to anyone in the matrix with access to the money hose.  The effects are only in the real economy, not in the matrix.  If you think you are going to get rich betting against central bank stupidity, within the context of their stupid system, think again.  There is no market.  These numbers are meaningless.  And unfortunatey, looking at them and pretending they have meaning, is still some people's jobs. 

teslaberry's picture

the emperors clothes have meaning to people who think he has clothes. all of reality is  fiction.


if the central banks begin to lose the illusion of control, it becomes meaningful. the illusion is not just about asset prices, but the prices of BREAD. which will very much be affected. if you want to amke money betting against cetnral banks that you look at commodity and bond and currency markets. not stocks.

Colonel Klink's picture

Get that man to a government re-education kamp!

OC Sure's picture




CNBC sponsored material slaying dragons and exposing bullshit?   Lulz!