Santelli: "Blame the cops, not the criminals"

Santelli, again, on the most idiotic rant I ever heard. Basically saying that bankers are going to cheat and steal; it's just their nature, so don't blame them. (He used the analogy of his dog stealing food from the barbeque. It's their nature.)

So the real blame according to Santelli lies with the regulators, who don't understand the real, criminogenic, "natural state" of bankers.

Listen, I don't think that regulators are doing a great job--not at all. However, to state the problem as Santelli has, is assinine. But then what do you expect from Santelli.

10yr Treasury hits record low of 1.68%. Oh wait...S&P downgraded our credit rating!

Where are the idiots at Standard & Poor's today? They should be asked to justify their clueless downgrade of the U.S. credit rating last summer. Remember that? Since then, rates have gone nowhere but down and the 10yr Treasury is making a new, record low yield today.

And while I'm at it, where's Jim Rogers, Peter Schiff, Rick Santelli and all the other clueless morons who've been warning of a spike in interest rates because of debt, rating downgrades, hyperinflation, and a collapsing dollar? Or Geithner, with his dumb comment about the U.S. having to earn back confidence to get a triple-A rating from S&P? What about Bernanke, repeatedly telling Congress that we must get our debt "in order" otherwise, we'll lose control of interest rates.

So, so, wrong.

Santelli: "JP Morgan loss was the Fed's fault!"

More diarrhea out of Santelli's mouth this morning. He says, JP Morgan's $2 bln trading loss was the Fed's fault.

Poor Steve Liesman was trying to rebut him, but he got beat up bad by the tag team of Santelli and Kernan.

Liesman, if you're reading this: JP Morgan traded out of its OWN CAPITAL. The level of reserves in the banking system (which is what the Fed directly controls) HAD NOTHING TO DO with JP Morgan's bad trade.

Moreover, if Santelli is suggesting that JP Morgan was "incentivized" to take massive risk because low rates limit its profit opportunity, he's an idiot. JP Morgan is a commercial bank and a commercial banks make loans, that's their primary business activity. And if done wisely it's a HIGHLY PROFITABLE activity for a bank.

JP Morgan's loss was due to hubris and ego. That's the way all traders eventually go down. It had NOTHING to do with the Fed, Santelli. Want to debate that?? I'm no Steve Liesman. I'll take you to school again!

Santelli debate rescheduled...Santelli debate rescheduled...Santelli debate rescheduled!

My debate with Rick Santelli that was set for 11:30am today has been rescheduled for tomorrow at the same time.

-Mike Norman