Rick Santelli vented a forceful and furious rant against Obama’s multi-trillion stimulus package — many people suspect it will only cause further distortions in a deeply troubled economy, and the only realistic solution is to let people suffer the consequences of vast overspending. Anything else is just an attempt to defy the law of gravity. Personally I don’t know — I hope America can reinvent itself, but there’s a real sense of panic emerging from the States right now.
Even if it was some kind of staged PR exercise, what Santelli actually said is entirely correct. I’ve been saving doggedly all these years, watching everyone jump on board the property gravy train, and there’s NO WAY that I would willingly subsidize them. As Peter Schiff said, the President should be defending the dollar, not embarking on mad inflationary schemes. Obama’s plan is fundamentally unjust.
The only people affected by plummeting real estate prices are the ones who bought a house that cost more than they could afford, hoping for a spike in value so they could sell at a profit or take out a new loan based on an increased value. Their home wasn’t just a place to live; it was an investment they thought they could liquefy at will. If we’re saving these poor souls from the 26.7% drop in their investment, we should give twice as much aid to everyone who has lost approximately 50% in the stock market since its peak.
Transcript over the jump..
SANTELLI: The government is promoting bad behavior! Do we really want to subsidize the losers’ mortgages?! This is America! We’re thinking of having a Chicago tea party in July, all you capitalists who want to come down to Lake Michigan, I’m gonna start organizing.
JOE KERNEN: Hey, Rick… Oh, boy. They’re like putty in your hands. Did you hear…?
SANTELLI: No they’re not, Joe. They’re not like putty in our hands. This is America! How many of you people want to pay for your neighbor’s mortgage that has an extra bathroom and can’t pay their bills? Raise their hand.
President Obama, are you listening?
TRADER: How ’bout we all stop paying our mortgage? It’s a moral hazard.
SANTELLI: You know, they’re pretty much of the notion that you can’t buy your way into prosperity, and if the multiplier that all of these Washington economists are selling us is over… that we never have to worry about the economy again. The government should spend a trillion dollars an hour because we’ll get 1.5 trillion back.
WILBUR ROSS: Rick, I congratulate you on your new incarnation as a revolutionary leader.
SANTELLI: Somebody needs one. I’ll tell you what, if you read our founding fathers, people like Benjamin Franklin and Jefferson,… What we’re doing in this country now is making them roll over in their graves.