Thursday, February 19, 2009

The "Santelli Rant"

Is the president watching?

Sphere: Related Content
Print this post

8 comments:

Securities or lack thereof said...

oh please, those trading desks would be empty without the infusion of TARP funds - gimme a break. Traders work the least hours of anyone on the street, especially treasuries.

James said...

The guys in chicago arent the same as the guys in NYC. No one in Chicago considers themselves a part of Wall Street

Securities or lack thereof said...

who do they execute orders for? Volume on the CME is down 40-50% y/y already just with hedge fund and others de-leveraging and reduced economic activity etc. I bet you if the major banks all failed, certainly MS and C, GS, all the irish and british banks, heck probably everyone given the linkage would be gone ex. govt intervention that rates, equity index, commodity and FX volumes would be down way way more. So they are a 2nd derivative beneficiary.
In my scenario who knows if the clearinghouse could have handled all the credit risk, and maybe the whole CME/CBOT etc. complex would be toast as well.
So yes, they got bailed out as well, we all did. Anyone who was involved in late september and was not begging for massive government intervention, was deluded. One can argue if this plan or that plan could work, but it is a little late to wave the free market flag.

Anonymous said...

The first government intervention was when mortgage brokers where allowed to commit fraud by selling garbage loans to the securities process. You can't say when that when the whole mess melts down, government shouldn't intervene. If government had been playing it's proper regulatory role, then there would have been no need for TARP.

Anonymous said...

Santelli is the brightest person on CNBC, bar none. Loved this. He could be anywhere outside the Chicago pits and get the same reaction. No one wants our tax dollars subsidizing those who made poor financial decisions.

Securities or lack thereof said...

It is very easy to tar everyone. Let us assume you got a great job offer for a position in Vegas in early 2006. You move the family and buy a house. Now the house is underwater 20% so you cannot refinance the loan even though rates have declined significantly. Thankfully you bought a home with a conforming loan, and the new bill now allows you to refinance the existing mortgage at current market rates by loosening LTV requirements. This does not seem to bad to me, and good policy and a good way to increase the multiplier of lower rates.
Maybe the Chicago pit traders should get up in arms about the ridiculous ag subsidies that we all pay for that benefit their clients etc...
We are going to pay one way or the other, if we help the housing market, some individuals will benefit yes, but MBS prices etc.. could be higher, which we are going to be purchasing with taxpayer money, and bank capital holes may be smaller, so we, the collective we, may save money there.

Broken said...

Yeah, give more money to the traders. They think they are America. Think of all the value they add to the economy.

1001 said...

The rant was great

Was does Santelli being a former trader , reporting from a trading floor , have anything to do with his/their opinions ?!?!?!?!?