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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!

 

 

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Fri, 09/21/2012 - 13:04 | 2818462 HaroldWang
HaroldWang's picture

Why isn't anyone paying to the dive in Transports?? Everyone is so giddy about the "melt up" in the markets but they don't mention the critical support level of Transports. Pretty scary actually, really.

Fri, 09/21/2012 - 13:13 | 2818496 HelluvaEngineer
HelluvaEngineer's picture

You call that trolling?

Fri, 09/21/2012 - 14:19 | 2818634 Precious
Precious's picture

Full-fledged death vomit from ingesting a Trinidad Scorpion Moruga.

Fri, 09/21/2012 - 13:13 | 2818497 Cognitive Dissonance
Cognitive Dissonance's picture

When stampeding, cattle only pay attention to real danger (as opposed to a perceived/imagined danger such as "missing the rally") when a few hundred head are already over the cliff and piled up on the rocks below.

Fri, 09/21/2012 - 13:15 | 2818505 LawsofPhysics
LawsofPhysics's picture

Moving real goods around does not apply to the paper economy.

 

hedge accordingly.

Fri, 09/21/2012 - 13:28 | 2818535 Ham-bone
Ham-bone's picture

Along with Transports...any ideas why the REITs are suddenly getting sold off (other than usual bullshit)???  Somebody actually thinking rates will rise killing the roll into ever lower financing or rents / vacancies will be a problem?  Tax change ramifications?  Interesting.

Fri, 09/21/2012 - 13:29 | 2818564 dirtbagger
dirtbagger's picture

Don't you realize how many thousands of trucks are going to be required to move the money around for QE-3.  Go long transports.

Fri, 09/21/2012 - 20:12 | 2819632 stocktivity
stocktivity's picture

QE4 will target the transports. Ben's  got everything covered.

Fri, 09/21/2012 - 21:10 | 2819701 Buck Johnson
Buck Johnson's picture

I know, they can't really manipulate the transports can they.

Fri, 09/21/2012 - 13:08 | 2818480 RSBriggs
RSBriggs's picture

Did anyone else read that as "Germanium plant"?  I was wondering what this had to do with semi-conductors....

Fri, 09/21/2012 - 13:30 | 2818568 vast-dom
vast-dom's picture

Guess this was ROMNEY ENDORSEMENT by Santelli post...

Fri, 09/21/2012 - 20:15 | 2819637 FrankDrakman
FrankDrakman's picture

The vowel in the second syllable of your nom-de-goon is off by one. Doesn't matter which direction.

Fri, 09/21/2012 - 13:10 | 2818486 Kreditanstalt
Kreditanstalt's picture

Hee-hee...!   That's what happens to world-improvers, central planners, price fixers and generally anyone who thinks the economy can be manipulated by governments...

Fri, 09/21/2012 - 14:04 | 2818702 vato poco
vato poco's picture

Oh, it ain't just central planners et al who do that. That sorry, stupid "We gotta do SOMEthing!" excuse for an idea was why WW1 was such a tragedy. They'd send the lads over the top to charge the thickets of barbed wire backed by lots of machine guns, and they'd get slaughtered en masse in minutes. Then they did it again. And again. And again - for 4 years. Both sides. 

Because the Generals "had to do SOMEthing!", you see. Else they'd get *fired*, and lose all that lovely lovely power & those wonderful wonderful perks. What's a mere few million dead proles & peasants compared to the loss of all that?

Fri, 09/21/2012 - 13:11 | 2818489 the not so migh...
the not so mighty maximiza's picture

They are starting to sound like .."hey we can make money and more money , but it just won't be worth anything..."

Fri, 09/21/2012 - 13:11 | 2818492 davidsmith
davidsmith's picture

"at what point do you tell investors stop focusing on the benefits and make the collateral damage the investment theme?" 

 

You see?  We are one step away from saying, "At what point do you stop focusing on investors and make corporatist policy your focus?"

 

Remember what Hitler did with labor union funds.  He simply brought them under the control of the state.  And that's what's happening now.  Do you seriously believe our American fascists want "investors" interfering with their allocation plans?  How absurd, how absurd.  All it will take is this upcoming downward recessionary leg, and we are preparing for it now.

Fri, 09/21/2012 - 13:14 | 2818500 AynRandFan
AynRandFan's picture

I love Rick Santelli.  This video is emblematic of the great divide in this country, between the pragmatic attitude of believers in individual rights and the disdainful attitude of those who believe in collective rights.

Fri, 09/21/2012 - 13:22 | 2818533 davidsmith
davidsmith's picture

And that's exactly what the corporatists are trying to do: distract you with emblems.  Hasn't it occurred to you and "believers in individual rights" and "those who believe in collective rights" are two sides of the same coin?  You are exactly the naive bourgeois the fascists love.  So easy to fool!!!!

Fri, 09/21/2012 - 13:38 | 2818597 baby_BLYTHE
baby_BLYTHE's picture

Santelli's rant was decent up till the end where he incorrectly stated "Bernanke is a member of the government".

Fri, 09/21/2012 - 13:57 | 2818669 snakeboat
snakeboat's picture

As far as being in cahoots with the banks who control the congress and senate critters, he sure is.  Just gotta get the definition of gubmint right...

Fri, 09/21/2012 - 13:58 | 2818680 hannah
hannah's picture

what is incorrect about the statement...? if ben and obama and timmy all meet and plan how to buttfuck us, arent they part of the same group...?

Fri, 09/21/2012 - 13:39 | 2818604 VyseLegendaire
VyseLegendaire's picture

The divide between 'individual rights' and 'collective rights' is a distraction, as both groups lose their freedom under the noose of the state. 

Fri, 09/21/2012 - 14:02 | 2818693 pods
pods's picture

There are only individual rights.  Collective rights is a misnomer.  

Rights are something that you are born with.  Individuals are born.  Collectives are formed by groups.  Groups are provided privileges.

Just as there is no such thing as a "right to vote" there is no such thing as a collective right.  

Definitions are important.

pods

Fri, 09/21/2012 - 14:27 | 2818819 otto skorzeny
otto skorzeny's picture

I'm a corporation-therefore I am an individual

Fri, 09/21/2012 - 13:18 | 2818520 kaiserhoff
kaiserhoff's picture

Ew Ewain wowwies about wiquidy wisk;)

Fri, 09/21/2012 - 15:37 | 2819070 RSloane
RSloane's picture

Wight, wight.

Fri, 09/21/2012 - 13:18 | 2818521 Shizzmoney
Shizzmoney's picture

Santelli, like Peter Schiff, is a blinded baby boomer tool.  Correct analysis of why things are bad, but iffy judgement on solutions.

Like for example, he thinks that Mitt Romney will make a "good decision" on the new Federal Reserve head.....like as if Romney could have a chance to reign in the central bank by just changing a face. 

Even Romney's boy Hubbard, wants Bernanke to stay.  So, IMO, he will stay....and you know why?

"In Fascist America, the Fed rules over you, Mr. President (whoever it is)." 

NOT the other way around.

Fri, 09/21/2012 - 13:24 | 2818542 fonzannoon
fonzannoon's picture

Schiff has stated he is a Ron Paul guy, and Gary Johnson too. He prefers Mitt to Obama but he knows either one is going to kill the dollar.

Fri, 09/21/2012 - 13:33 | 2818573 Abraxas
Abraxas's picture

Right on, brother. I wouldn't call it fascist or communist though. What we have now deserves a name of it's own. A name that embodies not only complete lack of any ideological or religious adherence, but also striving of entire nations to abolish any traces of common sense, logic, morality and/or sanity. The highest and final stage of consumerism.

Fri, 09/21/2012 - 14:00 | 2818685 hannah
hannah's picture

'....but iffy judgement on solutions.'

 

i got news for ya...when you owe 4 quadrillion dollars in bs fake financial assets and the world is going to shit...THERE ARENT ANY SOLUTIONS...LOL!

Fri, 09/21/2012 - 14:27 | 2818818 davidsmith
davidsmith's picture

This is naive.  The Fed will go when the corporatists find it inconvenient for it to continue.  We haven't ever really played hardball in this country.  You still go by "institutions," but one of the things characterizing fascist regimes is that they abolish institutions which seem immutable.  Sure, they will keep the overarching construct--after all, Hitler never repealed the Weimar Republic.  But all the subordinate entities get swept away.  For example, if the United States decides it needs to organizing policy under the rubric of sector "boards" (the steel "board," the telecommunications "board"), it will get rid of the Fed, because it will be the board which deals with the financing of that industry, and the kleptocrats will do their stealing through the financial shenanigans of that "board."  What role then would the Fed have to play?  It will wither and die, and either linger as an appendix, or be eliminated.

 

The day the Fed is eliminated, no one will notice and it will not make news.  Think the political situation under which that would occur.  Coming soon to an Amerika near you!!!!

Fri, 09/21/2012 - 16:10 | 2819148 JuliaS
JuliaS's picture

Peter Schiff summed up in one sentence: "I noticed it first, so buy my book".

Fri, 09/21/2012 - 13:24 | 2818543 Brother Sebastian
Brother Sebastian's picture

The Fed is simply stalling for time.  It's all about Obama's reelection, too.  The tbtf banks are in worse shape than ever, as is the country.  Richard Fisher illustrates the Fed's stupidity.  During a CNBS interview, which was attended by Donald Trump, Trump told Fisher he "wanted inflation" because it was good for business.  Fisher came right back with "Well, we're not going to help you...our job is to keep inflation low."  Or words to that effect.  What a jerk and liar.  I'm sure I don't have to explain to ZH readers why I say this.

Fri, 09/21/2012 - 13:37 | 2818595 Itgoestoeleven
Itgoestoeleven's picture

Is the mainstream media beginning to break down and actually report real news? Bloomberg with Ray Dalia and fed gov Fischer foretelling of really bad shit to come. I have known for quite a while about the possibility of civil unrest and have prepared for it. But hearing about it from the mainstream with such frequency has made me think the the wait is over. Excuse me I have to shita and puke at the same time.

P.S.

Rick is the only mainstream source that has been telling it like it is from the beginning.

 

Fri, 09/21/2012 - 13:50 | 2818613 WhiteNight123129
WhiteNight123129's picture

Bernanke Did it, Evil Genious bastard (I have a lot of respect for your fainted printing craziness. I love those guys...!!!)

Here it is, market is pushing down the long bond slowly, helping put pressure on the guys hoarding they cash (Corporations and Rich). Spend you motherfucker bastards, the Market and Bernanke have their guns pointed on your cash.

http://www.bloomberg.com/news/2012-09-21/bearish-treasury-bets-hit-a-rec...

 

Game over bond bulls. The Fed owns the market, get in on the 10 years all you want I do not care but get out of the 20+ years.

Fri, 09/21/2012 - 13:43 | 2818622 Billy Shears
Billy Shears's picture

Otter: "No, in this case, I think we have to go all out. I think this situation absolutely requires a really futile and stupid gesture be done on somebodies part..."

Bluto: "We're just the guys to do it!"

http://www.youtube.com/watch?v=q7vtWB4owdE

Fri, 09/21/2012 - 13:44 | 2818626 cabtrom
cabtrom's picture

So many of you are just giving up. Why? Perhaps you could try being optimistic. If someone could give me some advise as to who to vote for that can help point us in the right direction I'll do it. I'd love to write in Ron Pual if that's what would be the best salution but NO ONE wants to try and promote SOMEONE! If you all want Obama fine then I'll vote for him however, it's not like I don't want to vote for what would be best for this country. I realy do want a bright future for our kids but everyone just thinks its so fucking hopeless. I thought I'd try a humble approach. Please, WTF can I do to help??

Fri, 09/21/2012 - 14:02 | 2818695 hannah
hannah's picture

cabtrom ...here's some advice...BUY LOTS AND LOTS OF 7.62 AND MAYBE SOME 9MM.

Fri, 09/21/2012 - 14:23 | 2818800 SmallerGovNow2
SmallerGovNow2's picture

Don't forget the rifle and pistol to go with them.

And a 22 is always a good friend and cheap to fire routinely at the range.  Ruger 10/22 rifle paired with a 22 Berreta pistol is a good combo as both fire LR rounds...

Fri, 09/21/2012 - 14:26 | 2818817 hannah
hannah's picture

glock G17 and keltec sub2000...both use same mags......!

Fri, 09/21/2012 - 14:10 | 2818733 vato poco
vato poco's picture

Um....say, Cabby ol' chap....am I the only one who finds it a tad *ironic* that the guy who's calling for good ol' fashioned American Optimism and Hope For The Future employs a _weapon_ for his avatar?

Fri, 09/21/2012 - 16:38 | 2819230 hapless
hapless's picture

Take a closer look.

Fri, 09/21/2012 - 15:42 | 2819084 helping_friendl...
helping_friendly_book's picture

You can write in Ron Paul but, you also must write in a Vice-Presidential candidate as well.

I am going to write in Ron Paul as Prez. and Obama as VP.

 

Fri, 09/21/2012 - 15:45 | 2819091 RSloane
RSloane's picture

Vote your conscience. Write in whoever you want. Its not hopeless at all. Most of us see an endgame now, and for many, that allows us to breathe easier and prepare. The worst possible thing that could happen to our kids is an endless continuation of manipulation, distortion, and economic terrorism we have now. I haven't been this optimistic in a very long time.

Fri, 09/21/2012 - 21:03 | 2819695 Henry Hub
Henry Hub's picture

So what is it? You're ether smoking crack or eating bath salts.

Sat, 09/22/2012 - 08:29 | 2820018 FrankDrakman
FrankDrakman's picture

cabtrom,

Assuming you're sincere, here is my honest, if disheartening, reply.

We are effectively living in an apartment building, with a shoddy foundation, crumbling walls, and leaking pipes. We have two choices: continue to patch up and plaster over the cracks, or tear the whole thing down and rebuild, properly. The first approach is easier, but it means that we live in fear of the whole thing falling apart without warning. I think it's better we realize it's broken, and live in tents for a few years if we have to, but let's demolish the entire corrupt structure, and start again. That's the best way to provide a real future for our children.

Fri, 09/21/2012 - 13:49 | 2818639 FuzzyDunlop21
FuzzyDunlop21's picture

At first I didnt get the analogy but then i realized the hose is Bernanke's dick and the water is him pissing all over everyone and everything

Fri, 09/21/2012 - 14:09 | 2818718 WhiteNight123129
WhiteNight123129's picture

Only the Equity and Bond owners hate Bernanke, the commodities guy want to gut this financial asets bubble by kick starting the convertion of monied capital into circulation. Go Benny, we are all with you, Short the 20+ gently guys, buy the commodities, and watch your stockbrokers selling is AAPL after 1.5  year and buy goods an bitch after Bernanke. Gut them all, fuck them but put the lube so that we do not have hyperinflation. And the Equity guys think Bernanke is their friend.... pfff.... see you in 5 years and let us talk about how much pounds of rice his equity portfolio can buy. Though he should stay ignorant of his fate, otherwise we have crack-up boom....

 

Fri, 09/21/2012 - 14:11 | 2818740 vato poco
vato poco's picture

He had us at "Dicks fuck assholes".

Fri, 09/21/2012 - 14:58 | 2818654 web bot
web bot's picture

I'm glad Santelli went after that little rat Sorkin...  He's your classic liberal... always sitting on the fence, wants to be liked (like all boot licking liberals) ...but a #uckin liberal all the same. HA HA

+1000

Fri, 09/21/2012 - 14:12 | 2818739 Missiondweller
Missiondweller's picture

The market will drop by 25% or more with or without Benranke. It will revert to its intrinisc value at some point. Better to do it in a controlled and healthy way by kicking Brnanke out than waiting for the market to figure out its doubled since 2009 on a hope and a prayer that will never come.

Fri, 09/21/2012 - 15:34 | 2819057 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture
On Santelli's Queasiness About Bernanke's Quantitative-Easiness

One of your better story titles T. D.  I always enjoy your verbal volleyball and play on words!  Tyrants hate humor, especially when directed at them. So keep it up!!!!!!!

Tuco

God, "do not" save the queen!

Fri, 09/21/2012 - 16:52 | 2819273 Snakeeyes
Snakeeyes's picture

I agree with Santelli. The Fed is acting as pro housing Democrat institution. Trying to manipulate stock prices and housing is NOT the Fed's mission.

http://confoundedinterest.wordpress.com/2012/09/21/eurozone-deflation-netherlands-housing-spanish-mortgages-but-greek-yields-fall-below-20/

Fri, 09/21/2012 - 17:34 | 2819360 indio007
indio007's picture

The banking system is systemically backed by real estate. They have no choice but to keep housing afloat.

No one can build a business in the sky after all, eventually even airplanes must land somewhere.

It's about the land.

Fri, 09/21/2012 - 17:32 | 2819353 indio007
indio007's picture

I'm still not voting for Romney. 

Abolishing The Bernanke isn't enough.

Sun, 09/23/2012 - 23:25 | 2823379 Hedge Fund of One
Hedge Fund of One's picture

But isn't it a start?

Fri, 09/21/2012 - 17:59 | 2819407 earleflorida
earleflorida's picture

'the anachronism of irresponsibility in today's throes, regarding complicit, and utter complacency...

is, but the vernacular sounding board of kicking this bouncing... empty can of hopium-worms around and about the precipice of a temperamental event horizon on a timeline that's long expired...

an, encumbered fiscal volcano at eyes' fecal`point...

where compression meets gravity, in which neither idealist nor realist can deny'

Great rant "Rickster!!!"

thankyou tyler 

Fri, 09/21/2012 - 20:00 | 2819616 Heroic Couplet
Heroic Couplet's picture

"Rick Santelli" and "irrelevant" contain almost the same letters. The finance sector needs to shrink to 1950 employment levels.

Sun, 09/23/2012 - 23:24 | 2823376 Hedge Fund of One
Hedge Fund of One's picture

That Rick, gotta love 'im, is a walking free association of analogies!

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