CNBC’s Rick Santelli explains why he thinks the Federal Reserve needs to provide more transparency. This could be called a full meltdown but based on prior Santelli antics this is more mild.
Rick Santelli video and transcript below
the street. out to the cme group. rick santelli with the santeleexchange. good morning. wake up out there. isn’t a lazy monday morning. not too many mondays from now we’ll have a new fed chairman. i call it the fed chairman squeep staked. it really is different. granted, you know, what we’ve had turnover in the past, maybe outside of ben bernanke, whether it was mr. greenspaner mr. volcker, it just seemed it was a different world,especially with transparency. although transparency, to me, how many people have said the fed needed to be moretransparent? imagine a window here, tranarency allows somebody to see through the glasso see what’s on the other side. in this case, decisions about exit strategy taper, the problem with transparency, it isn’t whether the glass is clear oropaque, it’s what there is to see on the other side. and i guess that’s what they’re missing. the other thing they’re missing, from i’m from chicago, if i poll all of the players and see whichpredicted we would win the world series, whoever guessed thatright if i make them the manager, does that guarantee me that next year i’m going to win the world series? no. i’ve seen an article in the journal trying to handicap decisions by nonchairman types within the dozen members of the fomc committee. down here there’s a boatload of various ways to practice trading. phony trading. not real, artificial. practice, see if you have what it takes. i have yet to see one person who on faux trading doesn’t make a boatload of money. when it’s real money, when you’re in the hot seat. above and beyond that does it mat who are guessed right or wrong on inflation? you know, the models that predicted that if we have programs, fed programs, that it would result in a creation of money that would flow through the economy and result in new hiring. but the transmissions line were screwed up. we need a big bottle of drano, the money’s cramped in a pipe. the issue is not when that started to flow through, because when velocity picks up there is a jump in inflation, we can argue about that definition,commodity prices. one decision, and the only decision, that matters is proof in the gdp this week. it’s aboutgrowth. there are verifiable issues within the fed programs that result in sustainable growth? the answer is no. all of the rest of is it just a silly discussion. back to you. all right. rick santelli for fed chairman, we’ll talk to you soon.