Instead of the endless procession of "different this time", "buy-the-dip", "money-on-the-sidelines" asset-gathering, Muppet-fleecers that CNBC so typically trots out, Sam Zell graced them with his presence and the truth was allowed a voice for a few minutes. Joined by David Rosenberg, who clarifies the insanity that engulfs US equities, explaining in wonderment that it is "not surprising the market rises even in the face of bad ISMs, worse jobs, and worst NFIB data, because Japan and the US are embarking on a gargantuan quantitative easing that is the lynchpin behind the stock market." It is not about being bullish, or bearish, or agnostic, it is understanding the driver of this market - and that is not the economy, not earnings, "it is the mother of all liquidity-driven rallies." Maria B, soundbite in hand, is slammed for her "glibness" at not fighting the Fed but it is Sam Zell's brutal honesty that shocks even the money-honey. "This is a very treacherous market," Zell explains - thanks to the giant tsunami of liquidity, "the problems of 2007 haven't been dealt with," and given the poor macro data and earnings, "we are suffering through another irrational exuberance," leaving the entire CNBC audience speechless when he concludes, "the stock market feels like the housing market of 2006."
"So don't fight the Fed?"
"That's a pretty glib comment for what is going on. You could have fought the Fed in 2000 and 2009 and done quite well... [thanks to the Fed] the market will tend to drift up - until something breaks."
"We're debasing our currencies around the world.. which ultimately translates into a lot of inflation."
"What we are seeing here is like a giant tsunami of liquidity."
"People look at the market and think things are better. The level of uncertainty has reached a point where people are just throwing money [at risky assets] because they don't know what else to do with it."
"I would not be adding money to the stock market. This is a very treacherous market."
"Yes, it's gone up every day. Yes, you're not supposed to fight the Fed, but sitting on the sidelines is preferable."
"In our businesses, we are not seeing strong conditions."
"The problems leading up to 2007 haven't been dealt with."
Then at 6:00
Zell:"The current stock market feels like the housing market of 2006. Everybody can't afford to miss it."
Maria B: "That's a scary comment."
Zell: "Why? Every single day it goes up. What were the headlines in 2006 - housing prices going up every day. What are you talking about every day now - new high in stocks every day!"
"We are suffering through another irrational exuberance."