CNBC’s Rick Santelli discusses tapering and breaks down Fed chairman Ben Bernanke’s speech. During the interview Rick Santelli asks who Ben Bernanke is working for. That is the question, what is the answer?
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Rick Santelli CNBC interview video and transcript below
busy morning on wael wall veet and in chicago. hi, rick. hi, carl. today we’re going to talk about the great caper. what’s up, doc bernanke? i really want to know. i want to know what’s up. it’s so hard for me to get my arms around this. i remember when all the boys on the trading floor were poring over companies’ charts and all the fundamental metrics. but — is it your birthday? yeah. happy birthday. but i am going to steal a flower. it’s like to taper, not to taper. to taper, not to taper. or if you’re a saver, he hates me, he really hates me, he hates me, he really hates me. or if you’re a stock trader, oh, he loves me, he loves me more today. he’s going to love me more at the end of the year. he’s going to love me for years. i don’t know, it seems a little bit ridiculous to me. yesterday, we ran it twice today. ben bernanke had a quote. and i’m going to read it. we’re not going to show it on the screen. currently, we have an unemployment rate of 7.6%, which i think is anything understates the health of the labor market. let me get this straight. it overstate tess health of the labor market. how many times have you heard ben bernanke say i have to do all this because the guys in washington are horrible. okay. then i think of this. i think of november elections. where was ben bernanke with that comment? i will tell you wa, many of my friends voted because the economy was getting better and the unemployment rate was going down. but it really wasn’t real. what did we get from ben? absolute and utter sigh leps. i think that’s a bit disengymus personally. all right. now, let’s look at this. when we all talk about the taper, it’s all about interest rates to some extent and many say, well, listen, stocks are doing great. it really isn’t about interest rates. all right. so i’ll take the interest rate and i’ll concede that. let’s say interest rates make no difference to this equation at all. so what are we left with? we’re left with corporate profits. .even though this is a hand drawn chart, look it up, it looks pretty good. corporate profits are huge. they’re huge. the interest rate things he’s doing really doesn’t matter. well, if this is a good indicator of the economy, why is he still hanging around with these programs? all right. he wants to target the unemployment rate. now, let me get this straight. corporate profits are going through the roof and he’s targeting unemployment, which if you look at the employment for population is at a 30-year low. gee, where is the correlation there? or maybe the interest rates are benefiting the treasury, who has boat loads of debt. maybe this is something the eyeball should pay more attention to. back to you. i think i see next week’s cover of business week. rick santelli from chicago, thank you very much, sir.