Paul Krugman Piles On CNBC’s Tea Party Analyst: ‘He Hates The Poors’

Economy Nobel winner, Paul Krugman, participates in a debate on expenditures and investments for the economy growth, promoted by Exame magazine, at Unique hotel, in southern Sao Paulo, Brazil, on September 14, 2012.
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If CNBC’s Rick Santelli wasn’t so firm (or perhaps delusional) in his convictions, Monday could have been very humbling for the financial analyst and tea party revolutionary.

Santelli was humiliated on-air Monday by fellow CNBC commentator Steve Liesman in a video clip that racked up scores of clicks and schadenfreude.

But even before Liesman rattled off all the ways his colleague has been wrong, the always-animated Santelli, who’s spent years pushing bunk doomsday scenarios about spikes in inflation that never came, screamed on the floor of the Chicago Board of Trade that he’s been right all along.

Some traders standing nearby applauded — just as they did in 2009, when his famous rant about capitalism helped launch the tea party movement.

New York Times columnist Paul Krugman wrote Monday night that he has a hunch why the consistently wrong Santelli still receives such a warm reception among the traders.

Think about that: Liesman is of course right about Santelli’s record, and as I’ve pointed out many times this goes for all the inflationistas. So any trader who believed him would have lost money hand over fist. So why the applause?
Basically, I think, it’s because Santelli is their kind of guy; he hates the poors, he hates people who want to help the poors, he was trashing Janet Yellen for suggesting that she actually cares about the plight of the unemployed. And the traders feel the same way. So they like Santelli even though he’s been wrong about everything.

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Notable Replies

  1. Krugman is awesome. If you don’t follow his blog at the NYTimes, you should.

  2. You can sell ignorance and fear around class, race, sex, religion and politics. People will fight to their deaths against their best interest. Santelli is a lone wolf of the big banks and Wall Street.

    They are all delusional and some are more personable than others, like Santelli or Madoff.

  3. Traders applauding him? So there is honor among thieves.

  4. I think, it’s because Santelli is their kind of guy; he hates the poors,
    he hates people who want to help the poors, he was trashing Janet
    Yellen for suggesting that she actually cares about the plight of the
    unemployed. And the traders feel the same way. So they like Santelli
    even though he’s been wrong about everything.

    And, in general, this is akin to the kind of “leg up” you get when you’re a Republican politician dealing with your base. GOTPers will vote for their guys even when they’re wrong about everything. Democrats, not so much, the progressive base is way more skeptical. Democratic flim-flammers, [Henry Cuellar, I’m lookin’ at you] and are there are a few out there, generally don’t stay around long, or are relegated to back bench status.

  5. Avatar for gr gr says:

    Shows how little rationality is involved in buying and selling stocks and other financial instruments in the those markets.

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