On Santelli's Queasiness About Bernanke's Quantitative-Easiness

Tyler Durden's picture

Between CNBC's Rick Santelli and PIMCO's Mohammed El-Erian, this brief clip succinctly sums up the 'less than ideal' reality of Bernanke's all-in bet and how the world is trying to 'trade' it. Santelli analogizes: "Visualize the biggest fire hose in the world, 20 miles away from a little Geranium plant? Now this hose is going and going and going, and ultimately, that Geranium plant gets a little bit of water but everything around it and leading up to it for miles around is just underwater. That's QE, in my opinion." To which El-Erian retorts: "at what point do you tell investors stop focusing on the benefits and make the collateral damage the investment theme?" It seems, given gold's outperformance, that this is exactly what is occurring as the hose-pipe's flood spills out everywhere.

 

The discussion ensues, with Santelli noting that the Fed-heads (especially Charles Evans) have admitted QE is not 'ideal' but 'We've got to do something!!"

 From currency manipulators, to China's problems, to our iGadget obsession, and the destruction of future generation's wealth - epic rant!