Were Ezra Klein able to listen to any voice other than his own, he would have learned something in his interview with Rick Santelli. Rick is one of the few commentators who knows economics as applied in the real world and one of the rare ones who says it as it really is. Klein is too busy trying to talk over his guest to learn anything in this clip:
After Klein mentioned the possibility of a recession which would be painful and likely to move money around in ways he suggested would be ‘unfair’, Santelli corrected him with:
“Well, first of all, money doesn't move around in ways that are unfair. Money moves around because people that have it, control it or invest it, it's theirs and they put it places that they deem appropriate, and any outsider looking at that process using adjectives like unfair just don't understand markets and capitalism.”At the suggestion that inflation would “shift of wealth from one side to the other on creditors and debitors, they believe that to be unfair,” he said:
“And that's why the Fed's got it wrong, all of their assumptions are wrong. That's silly, that's why the programs haven't worked,” and “let's get the inputs right. What we have we have a bunch of entities that should have failed it would have brought religion to the system, it would have been a good thing, but we prohibited that from happening.”He finished up with:
I think an involvement by outsiders, Feds, European central bank isn't going to help, no. I think we should let this play out as it's playing out, and once we come to a new normal or a new stable foundation, maybe at lower equity rates, maybe at lower interest rates, that at that point maybe we can actually see congress, maybe it would be after 2012 elections, but we could see, you know, maybe they can pull out knees crazy Dodd-Frank bills that nobody can understand, maybe we can cleanse the system of everything that seems to be slowing it down, let the entrepreneurs invest and maybe we'll be able to deliver promises to people that are having rough times today.