This was a great little story this week--when the CNBC guy launched a tirade on the floor of the Chicago Mercantile exchange, accusing the President of launching a mortgage bail-out program designed to reward bad behavior by having the 93% of those people who PAY their mortgages (oh, and also the rest of us who pay each month for shelter in an antiquated act known as "renting")subsidize the 7% who don't or won't.
Apparently, this was too much for the White House's spin-meister Robert Gibbs, who singled the reporter out by name (Rick Santelli) for scorn while waving a copy of the President's plan.
Saturday, February 21, 2009
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2 comments:
I'm not even remotely surprised. I imagine somewhere right now somone is ripping into Santelli's child support records, outstanding tax liens or record of overdue library books.
The entire issue of "bad mortgages" is a fraud, as being reported in the media and by big banking.
There are at least three forces at work here, not one, as reported ad nauseum.
1. Some people got mortgages they would not be able to repay. This is what has been drummed into your head. Evil people (somehow, the bank isn't evil for loaning to someone who can't repay) trying to get something for nothing.
2. Some people got mortgages and paid on them dutifully, and are now unemployed for a variety of reasons (wildly unlikely "cause they don't wanna work), not the least of which is illegal/immoral altering of the workforce via outsourcing and h1b visas. american big business conspired against american workers by pretending that he must compete for wages against people eating bugs living in grass huts, now whines that they are not being repaid money from those they assaulted.
3. Some people got mortgages they could afford, but opted for an ARM. Interest went up, now they can't afford the mortgage. While one can argue using an ARM is not smart (i wouldn't do it), one must question the rapid and high rise of these rates, at a time when (magically) the fixed rate market remained pretty steady. I call this "price fixing" or "redistribution of wealth" meant to steal wealth from one class (homeowner) and give it to another (banking executives).
Free market, huh? Well then riddle me this batman: why are interest rates near all time lows when money is scarce (what banks, big business and govt is telling you)? The rates should be very, very high. OOPS! Cat's outtathabag.
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