CNBC’s Rick Santelli discusses tweets made by Bill Gross regarding the Fed and QE.
Full video and computer GENERATED transcript below:
all right, yeah, good day to talk about that kind of stuff. in the meantime rick santelli can give us the santelli exchange on this wednesday morning. good morning, again, rick. good morning, carl. santelli exchange has morphed. so we’re going to go with it in a fluid process. we had the bond king on not too long ago, bill gross, and he did reference my name. the context was after qe-1, qe-2 died, we saw stocks lose 1500 points. the notion was he doesn’t want to talk about whether the programs of our fed, world’sfed, are good or bad. they’re needed. that’s great. and about the same time he said that he had a tweet that was out there, so many people follow mr. gross. here was the tweet about seineclock eastern. central banks are where bad bonds go to die.without qe the fina markets and then the economy would falter. i’m not picking on mr. gross. but here’s the point. i’ve always said that the frog isn’t really alive and what we are doing is throwingelectricity in. when the lanes move we say it’s economic horse power but we’re being a bit disiuous. another point, especially tothat tweet. you know, if the toxic areas we are storing this paper are a way to nationalize some in the economy and banking industry and interest rates then the new gross and his firm put forth is a great phrase, the new normal isn’t really being allowed to grow. how long can we have the subsidy? how can we get rid of it? this is huge. a really bad or good jobs report on friday, it makes the outcome in the market ten times more volatile, because it’s going to bring in the liquidity factor from the fed every time, especially if it’s a weak number. back to you that’s right. i love the dead frog analogy, rick. that’s a good one. rick santelli, bringing gordon