Saturday, March 9, 2013

CNBC's Rick Santelli on the parlour game that is Quantitative Easing

Courtesy of Zero Hedge, will we ever see 'reality' again? Judging by CNBC's Rick Santelli's one-sentence epic rant Friday morning of the centrally-planned farce that we are living through... no. This exchange is in the clip above:
Liesman: "Why would you normalize rates?" 
Santelli: "Are we really that far down the hole that normalizing rates after this tremendous number - the huge drop in the unemployment rate - that you guys still wanna have the hammer-and-sickle on the flag"
So the short answer, it appears, is 'No'.

But perhaps it is Rick's seething anger in a second clip that exposes the reality of "the apologists" for the Fed and as he notes: "This whole thing is a Parlor Game and the country deserves better than Fed experimentation." 

Later in the day - an even more epic-er exchange.  In Liesman and Santelli II:
Liesman: "The Fed is doing the only thing it knows" 
Santelli: "The economy is better despite them." 
Anchor: "Where would we be today without the Fed?" 
Santelli: "We'd be significantly better now! What wouldn't have been significantly better is the one-year after the crisis - that would have been worse - but we would have been 'on the mend' Sam Zell-style, we would have hit a 'real' bottom."
Rick Santelli is so right.  The pain would have been sever, but malinvestment would have been cleared away and we would have had a genuine recovery by now.  Instead we are looking at a 'crisis' situation for years to come yet.

Both clips are well worth watching if economic policy interests you.


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  1. Trying to start another stock market bubble now to fix things. We all know how this will eventually end.

  2. EinsatzgruppenVancouverMarch 9, 2013 at 9:30 AM

    I don't understand why people pay any attention to Santelli.

    Austrian economists have been predicting that QE (or, maybe, the fed in general) would lead to hyperinflation in the USA for three full years now.

    How many times can someone be wrong before they have zero credibility left? I mean, if I went to my doctor 3 years ago and he'd told me I have six months to live, by now, I'd be wondering about his abilities as a doctor.

    If 3 years ago, an engineer had said "in 18 months max, the Alex Fraser bridge will fall down", he'd be looking pretty stupid by now.

    Yet austrians, for some reason, still have a non-zero amount of crediblity. Anybody explain why?

    1. Santelli is by far the best commentator they have.

    2. It's because they believe in the confidence fairy.

  3. What QE and ZIRP has done is bail out the very people who caused the problems in the first place; the banksters. For Joe sixpack all these policies have done is ensnare us into the greatest debt we have ever seen. We have been fooled into thinking everything is ok and have borrowed our collective brains out, which is exactly what the banksters have wanted. In fact, this economic magic act has not solved any of the underlying problems, but just papered them over until things really blow up later.

    1. Well said....

    2. Seeking Knowledge...March 10, 2013 at 9:41 PM

      Just because money is cheap doesn't mean that people should borrow. And just because people have a job today, doesn't mean they don't need to save for tomorrow.

  4. not a feng shui expertMarch 11, 2013 at 6:52 PM

    "Fed Balance Sheet Risks

    The Balance Sheet

    As everyone knows, the Fed's balance sheet has more than tripled since the financial crisis. Here is a look at the liability side of the Fed's balance sheet:"