He is actually one of my heroes on WS. He has been so critical of the Fed's policy in his speech a few minutes ago. He is speaking of financial engineering through buybacks buy issuing debt at these low rates citing IBM. This is what Intel appears to be doing also which should be noted that they too are buying back about $20 billion at more than a decade high in the share price. That makes me wary always that this will not end pretty. If Intel breaks out higher well above $34 I believe it becomes a short soon.
"He is actually one of my heroes on WS. He has been so critical of the Fed's policy in his speech a few minutes ago."
[You love those guys who consistently get it wrong, do you?
"NBC’s Rick Santelli, often credited with inspiring the Tea Party movement, made news Monday for yet another outburst on air. He repeated his usual rant against the Federal Reserve’s loose monetary policy, prompting CNBC senor economics reporter Steve Liesman to unleash his own diatribe about Santelli’s consistently failed economic forecasts. “Rick, it’s impossible for you to have been more wrong,” he said."
We have massive inflation in equity prices created by the FED. "Investors" paying record cash for apartments in NY and other "trophy" cities. Art & other valuables at record levels. Stocks in a huge bubble. The FED is nothing more than a bubble maker. All at the expense of the middle class. Not very many good jobs as debt levels are exploding. Home Equity loans on the rise again. How can the FED be in crisis mode with all these things going on??
The FED is also creating deflation elsewhere through 0% rates. They never learn. Time to abolish the FED once and for all. Our dollar hasn't crashed yet only because Europe and others doing the same thing. Santelli is right in that we need free price discovery not price manipulation by government. Price manipulation creates shortages, bad capital allocation and ultimately a collapse. It has also killed profits in the Financial sector. We also have the lowest number of shorts since 2007. Once this turns there will only be sellers with no buyers or natural buyers. This is one scary market! Go back to Nixon's price controls to see what you get when government tries to control results in free markets!
The guy is a billionaire man I wish I was as wrong as him...How about you? Do you actually believe the Fed is not creating bubbles in certain assets? The bond market does and they are usually right. Dream on if you think this stock market is where it is based on fundimentals. I trade so I can get in and out quick but this is going to end soon and it won't be pretty. The debt and margin levels around the world are at record levels. Of course Liesman is the guy to listen to he is the smartest guy on the street next to all the other paid pumpers like Bob Pisani.