CLASSIC CNBC EXCHANGE - Rick Santelli Battles NYT's Tom Friedman Over Social Security: "You're An Idiot"

CNBC Video - Santelli Battles Friedman - Sep. 8, 2011

Great clip from this morning's Squawk Box.  Runs 1 minute.

In terms of unfunded liabilities, Medicare is 6X the black hole that is social security, which can be solvent for 50 years with a few tweaks, but Santelli speaks through the lens of his 19 year-old daughter (as he often does), and channels the anger of today's typical college student, which to me at least, is completely understandable.

The correct answer is to cut war spending by 50% over the next 5 years, and use the savings to fund Social Security (without changes).  Medicare, on the other hand, and it's completely unpaid-for, and incredibly irresponsible Prescription Drug Benefit (Part D), is going to need a substantial overhaul to survive, the majority of which will need to come from means testing of the wealthy.

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Transcript

SANTELLI: I’d just like to know – you know, I was watching that debate last night, although it really wasn’t a debate,” Santelli said. “It was like a weird press conference. But I would like to know – does Mr. Friedman think Social Security is a Ponzi scheme?
FRIEDMAN: No, I don’t think it’s a Ponzi scheme.
SANTELLI: Earlier in the show you said that we’re putting the burden on our kids that’s unsustainable. What’s the definition of a Ponzi scheme?
FRIEDMAN: It’s a program that made promises that it cannot keep in full and it needs to be fixed and reformed.
SANTELLI: Isn’t that exactly what a Ponzi pyramid is?
FRIEDMAN: I don’t think it is a Ponzi scheme as a criminal endeavor.
SANTELLI: No, no – forget the criminal side. You need more people to perpetuate a myth because if the people stop the myth is known to all. That’s my definition of a Ponzi scheme. Let’s call at it chain letter, a pyramid scheme. Isn’t that by definition what Social Security is? Take the legalities and fraud out.
STEVE LIESMAN: Why is it a Ponzi scheme, Rick?
FRIEDMAN: It is pay as we go. Ronald Reagan fixed it. Why can’t we fix it?
SANTELLI: What does Ronald Reagan have to do with my question?
FRIEDMAN: What does your question have to do with reality?
MICHELLE CARUSO CABRERA: We brought it up.
SANTELLI: You can’t decide that more people is the only thing made Social Security work. We have a real issue because many people in government seem to like to read your work.
FRIEDMAN: What makes Social Security work is fixing Social Security in terms of the population demands.
SANTELLI: I didn’t ask if we should fix it or not. I asked if it’s a pyramid scheme.
FRIEDMAN: Your question is idiotic. That’s what you asked.
SANTELLI: You’re idiotic. I’m done. I feel good.
FRIEDMAN: So do I.

Comments

[Josie]

Friedman is an arrogant, liberal Zionist ass, who loves to spend other people's money...because he knows what's best and is gonna tell us all about it, right?? The epitome of a limo lib who lives the real high life with his wife's shopping mall money (which took a HUGE hit in '09--see GGP)...

[agatha]

love Rick Santelli.

[Cheyenne]

Mr. Santelli is a real pit bull here, refusing to let Friedman duck his yes/no question.

Santelli's profile of the camera, particularly at the end ("I feel good") is brilliant.

Thank God for guys like Santelli and Ratigan who've got the balls left to lose their shit on air. Long overdue.

[Teresa]

Rick Santelli and Joe Kernen are the ONLY reason I watch cnbc - After watching Mr. Santelli, tell "Mr.arrogant-know-it-all " Friedman he was an "IDIOT", I felt better myself. Thank you, Mr. Santelli, we need more people like you, that is not afraid to stand-up to know-it-all Liberals like Friedman.

[imp]

Social Security is in many ways worse than a Ponzi Scheme, because what kind of Ponzi Scheme says, "If you give me your money now, I'll give it back to you in fifty years, less taxes and inflation and cutbacks for 'austerity,' and accuse you of being a welfare parasite in the process."

[Boyd]

I'm in the industry (from Australia). We love Rick.

[John K]

Rick Santelli is an a**. What are his qualifications other than whining a lot. He questions people as if he has some divine knowledge and if he did he wouldn't be down in the pits where he is. Good slap down from Friedman.

[Miguel Grande]

The reason Mark Haines had to go was that he was more eloquent than Santelli and more believable.

[GT]

Friedman's only claim to fame is that he fucks an heiress - which, along with his Chosenness - is what bought him an entrée into the fetid swamp of the self-congratulating Beltway set.

Santelli, by contrast, made his bones on the floor of the CME. He's actualyl not the sharpest knife in the drawer, but he's smart enough to run rings around the bleached-teeth CNBC fucktards.

Santelli against Friedman is like putting Dick Feynman against Peter Griffin (another retard who fucks an heiress... although Griffin is twice as smart as Friedman).

Imagine if someone had said "Suck on this" about Israel, as Friedman did about Iraq and Afghanistan. His career ought to have finished - definitively - that day.

[loc]

In one sense, it's sad that instead of actual "news" and discussion, the only thing that counts now is cutdowns and who has more money and power.

[loc]

Santelli's right in one aspect. All rational and intelligent people know that the total global debt can never be paid back. They also know that poltiicians have no clue about how to pay this off because their first priority of course is to get re-elected.

There's no way that core programs like Social Security, Medicare and Medicaid won't be cut. Another key point. How come so many hedge funds and banks are being indicted now (forurteen months before the election)? It's all timed to make Obama and the Democrats look good.

[loc]

If so many love Santelli, how come the CNBC Powers that Be haven't give him his own program?

[Harry Johnson]

santelli is a stock pimp. He has done nothing useful in his worthless life. He is part of the problem. friedman is a useless piece of garbage pimping for the sellout of the working class. Neither one of these useless twits is worth the paper to wipe my ass.

[TR]

@Harry Johnson
"Neither one of these useless twits is worth the paper to wipe my ass."

That's too much of a compliment for either one.

[Cheyenne]

Santelli poses a yes/no question to Friedman: Is Social Security a Ponzi scheme? The only responsive answer to a yes/no question is "yes," "no," or "I don't know."

Friedman ran away from the question like a frightened little girl, raising a host of issues that were complete irrelevant to the question at bar. Fed up with Friedman's windy refusal to cope with his straightforward question, Santelli skewered him.

For those keeping score at home, it's Santelli 1, Friedman 0.

[CHRIS]

Rick Santelli is exactly right when he says SS is a ponzi scheme. We sign an equities agreement (w-4) to declare ourselves an employee, as an employee of the UNITED STATES. Then each year we continue to pay our taxes to the Federal, State. and Social Security programs. Do we derive any benefits from SS when we Retire! We expect them! Actually, if the Budget does not have the money APPROPRIATED each year when both houses pass the budget then we that hope to receive said benefits and those that receive them currently are at a loss of said equity. There is no contractual agreement between WE the PEOPLE and the OLIGARCHES to pay benesfits.

[Josie]

Last night, the Mc-L group on PBS was talking about SS. Mort Z (not exactly a conservative Republican) said that Bernie Madoff stated that he got the idea of his massive ponzi from SS. Mort admitted that SS is not sustainable and operates as a ponzi-like program.

Maybe Friedman should contact another of the Chosen (Mort) and discuss...

[Dave]

; D

http://youtu.be/6Sl-MHhEJxI