The guy whose morning cable news tirade inadvertently inspired the Tea Party movement is back with a fresh mega-rant that deserves to be heard around the world.
CNBC’s Rick Santelli took on his stock bubble-intoxicated cable colleagues earlier today as they stuck to their usual support for endless money-printing to solve the world’s economic problems. With Santelli ultimately storming off the set, the results were explosive.
We’ve long wondered how Rick manages to stay sane working around CNBC’s relentlessly, mindlessly bullish on-air staff. While Santelli argues economic fundamentals, his co-workers counter with emotion and partisan political support for the current regime. Since memories tend to be short, most of the NBC business channel’s remaining viewers probably don’t realize it was just as brazen during the dot.com and 2007-2008 bubbles.
So if Rick looks like a crazy man in the below clip, keep in mind he’s had a great deal of patience with these dunderheads:
So what exactly are his points? It’s actually simple (see chart below):
1. By keeping interest rates artificially low, the Janet Yellen-led Federal Reserve has encouraged reckless government borrowing and spending while crushing savers, especially America’s retirees.
2. The Fed has focused all its efforts on making the rich even richer through Quantitative Easing while working people suffer and are ignored by Washington’s elite.
But at CNBC, he’s talking to the walls as their support is 100% behind the Hamptons / Greenwich hedge fund class, who have been closely tied to the current presidential administration.
With stock markets at all-time highs, they appear to be “right” about the economy at the moment, but Santelli understands it’s fake, artificially propped-up by money-printing and accounting tricks. He’s not alone, either: a Swiss-based financial watchdog has recently been making the same points to anyone who will listen.
During the dot.com bubble, the talking heads who predicted an eternal free lunch were also “right”, at least for a while. When the music stops, however, those on a sugar high suddenly come crashing down to Earth.
Rick may be right, but like 1929, few want a reality check while stocks surge to the moon.