Rick Santelli created a stir when he whipped up a bunch of traders today with his rant on the housing bailout. He turned, gesturing to the traders and shouted “This is America!”
But he’s wrong. A room full of stock traders ISN’T America. At least, not for most of us.
We need to stop measuring economic growth by the rise and fall of the stock market. We need to stop measuring economic success by the happiness of the investor class – those who have so much money to spare that they use their money to make money by, not creating, but manipulating wealth. We need to stop creating public policy based on what stock traders want. If anything, public trading of companies does far more harm than good to regular Americans.
While private companies can afford to operate under a decent value system and treat their employees and customers as good as possible, once they go public their priorities change. All else may be sacrificed to keep stockholders happy. While business success can usually be obtained at the mutual benefit of owners, employees and customers, when someone sets their sights on becoming a tycoon, it’s almost always done at someone else’s expense. The line between simple success and tycoonism is usually drawn when a company goes public.
Economic success should be judged by the economic security of the middle class and, dare I say, lifting the poor.
The stock market aside, economic justice of “the people” is made of the economic security of “the people”. By this, I mean: job security, good salaries, fair treatment, real employee safety programs and buying power.
The news media might like to solicit commentary from economists from the stock-broker culture, but they don’t speak for real Americans. Real Americans struggle to pay the next bill. The investment class “struggles” when that extra, investment money, fails to create profit. Most Americans struggle when those very-same stock holders benefit by profit increases gained by layoffs, outsourcing, and salary cuts.
When the media, and politicians watch and react to the stock market, they’re blind to the plight of all of those who don’t have all that spare cash to invest in stocks. They’re blind to all those Americans who are having trouble simply stocking their pantries with food.
The stock market and investor class represents the upper echelon of American economics. If they’re happy, it’s often at the expense of the rest of us.
Comments
Santelli is more of America than what you are portraying.I have worked 40 years for a large company.they have always treated me and their customers terrific.Maybe you work in a sweat shop but you look around America you find the average worker has it not perfect but better than any country in the world.Most of them are part of that "TERRIBLE INVESTER CLASS" you put down in your article.Yes I'm happy when things are doing well but when things aren't I try to pick myself up and start all over again.this is why I respect Mr. Santelli opinion more than your "RANT"
SANTELLI FOR SENATE TO TAKE BURRIS'S SEAT
Santelli is 100% right! I refuse to pay the mortgages of those who irresponsibly bought the houses the could not afford while I have been sweating to pay mine and have been taking care of the well being of my family. If the Congress pulls this fraud through, I will stop paying my taxes, just like Obama nominees to the highest State positions did.
Boo hoo. Santelli's outrage is misplaced. Where has he been for the last eight years? What an f'ing p*ssy.
Progressives either need to make more money or stop envying and coveting the wealth of others. I don't want to bail out people who live above their means. Rick Santelli is right - Americans aren't happy and the Tea Party is coming.
"Investor class". What exactly is an "investor class"? I think that pretty much defines the writer - no need to read further. No more explanation needed.
I am amused that you say that he doesn't represent America, however the poll at CNBC.com shows that 94% of Americans support his comments at the time of this posting.
To William: that was a CNBC poll, how biased is the investor class right now. The real working class (those who actually have to work several jobs to pay the bills) are a lot more than those who watch CNBC.
Santelli is irresponsible and needs to live out of his sheltered world for awhile. Please your employers and the government were manipulated to put all the retirement eggs in one type of basket the Stock Market. There is nothing like working as a dog for 30 years and have all your retirement wiped out. Now the wealth of all Americans are at risk because the corporate leaders believed they were untouchable.
I enjoyed reading Jim's commentary. It was good to see another side to this complex issue. Those readsrs who have made up their minds over this issue may be overlooking some important pieces of this puzzle. let's try compassion as one small piece to this complex issue. Then let's think about compassion when put head-to-head with what seems to be a relentless greed in our society. It's hard for most of us to be compassionate when faced with the loss of our 401k and other investment packages. Perhaps we forget the packages are actually people's lives, working hard in companies, trying to pay their bills and raise themselves and their families. i've heard my fair share of whinning investors and economists, let's hear more from those who are making ends meet? Thanks Jim for opening the lid on compassion.
I guess you think that folks like Steve Jobs and Bill Gates are unfeeling monsters. You leave out that these "tycoons" have created thousands of jobs. And they treat their employees just fine. You represent just one more Marxist rant. Seems to be the trend these days.
Santelli hit the nail on the head.
While ignorant posters write things like
"working as a dog for 30 years and have
all your retirement wiped out", mature
thinking people know that you diversify
your investments, don't get in debt and
only purchase what you can afford. That way when the market tanks you'll always
be way ahead of the Corinnas in the world.
Maybe this isn't the America you think it is, but it IS showing the growing frustrations Americans are feeling. A good many of us are feeling big losses and a feeling of hopelessness, the likes of which we have never felt!
Mr. Cunningham: Insert foot in mouth. You do not speak for – nor can you contemplate the, “most of us.” I am 30 years old and over the past couple of years I have been “saving” my money and putting my money in the stock market. The idea sir, is that I give my money to a successful company and in return for the company’s hard work – I get a return on my investment. Obviously you don’t understand this concept.
Furthermore, you cannot judge the economic success of the poor because that statement is redundant! The poor, cannot be measured in the sense of economic growth or success!
And what the hell do you think most publicly traded companies are trying to do, not only for their investors, but also for their employees!? A company cannot flourish without an educated, well paid, well treated work force! Again, I am sorry but we cannot rely on the poor for their contribution to America’s wealth.
Maybe if Americans stop biting off more than they can chew; maybe if we stop feeling sorry for the poor; maybe if we just say no to hand outs and live by sound principals that “most” Americans were taught by their parents – we wouldn’t be in this mess! Sincerely Yours,
TA
Jim--
If you hate big business that much, you don't have to work for them or invest in them. It's your right.
What is not your right, however, is to sign a contract in your pursuit of the "American Dream", and then cry and whine and require me to help you fulfill it when you can't do it on your own.
There are many who were prudent, and they shouldn't be punished to the benefit of those that weren't.
I think Rick makes an excellent point and expresses the frustration that I have with this bailout.
Also, you might want to consider that there are two sides to the mortgage contract....the lender and the borrower. The lenders are the big banks you hate. Do you realize that this bill also bails THEM out? They made poor business decisions when making these loans, and they should be responsible for the losses that they incur.
Regards,
Nathan
So this is the DC Progressive Examiner. Funny how Woodrow Wilson was a progressive and passed the Federal Reserve Act to get this monetary system into power. Now the nation is drowning in debt.
Santelli is correct. I have been responsible all my life and I am not rich nor am I in debt. People need to be more responsible with their money and finances and quit being so materialistic. It is not my problem that people took out loans that they could not afford. I saw those Countrywide, et al., commercials and didn't take their offer. In fact, I thought it was a disaster in the making.
Progressives think its governments responsibility to make it easy for poor people to cheat the system and get possessions like the rich. When it doesn't work, they plan to subsidize the irresponsible with help for their mortgages.
Most of Wall Street are modern liberals. The people protesting in Santelli's video were traders on the Chicago Mercantile Exchange. Most of them work for companies and their incomes are fixed, unlike the bonus crazy liberal bankers in New York.
If your neighbor's house gets forclosed on it will drive your property value down especially if there are several forclosures in your neighborhood and especially if the houses sit vacant for any period of time. By pitching in to help your irresponsible neighbor, you're actually helping yourself. Maybe we were all a little irreponsible when we decided to drink the tax-cut/deregulation koolaid. With adequate funding our watchdog agencies could have been properly staffed and could have sounded alarm bells when they noticed that banks had drastically lowered their lending standards. Santelli's just trying to divide the working-class because he's scared we'll rise up and knock him and his ruling-class ilk off of their privileged pedestals. The fact that our corporate media has lavished such attention on this ignoramus should prove once and for all that they are in the business of defending Right-wing interests.
Mr. cunningham,
Mr. Santelli hit a bullseye from Pluto!
I'm a real American. I served my country in combat. I started with nothing, saved, then lost nearly everything during the dot com bubble. All the while, I knew the risks getting into investing. I stuggled to scrap up a down payment and purchase a home. I knew my limits to what I could afford. I found a rate I was comfortable with and stuck with it. Call it personal responsibility.
I had no persons or govt help me when I lost thousands of dollars in the market. It was my own stupidity and I held myself accountable for my actions.
I'm by no stretch an "investor class" individual. I'm a couple of paychecks away from losing everything should I lose my job.
It's time for all of America to hunker down. We need to get back to being hard working people who understand the meaning of responsibility and accountability.
Bailouts are not the answer! The working class and our children are going to suffer horribly for the decisions of this administration.
"public trading of companies does far more harm than good to regular Americans"
Sir! Public trading of companies is part of the American way of life. You must dislike the American way of life. Hmm...sounds like communism or Obama's neo marxist regime is your more your flavor.
I don't really think you have a grip on what most Americans go through. And investing in a home is more a choice of people with discretionary income than a choice for the poor. Bailouts of people that made bad investment decisions in the purchase of a home comes at a cost to everyone. If they lost their homes and had to go back to renting like I opted to do, what is so terrible about that. I made a conscious choice to stay out of the housing market because I thought the price of houses had gone up too far. Now you want me to pay for my choice anyway, which is blatantly unfair. Besides, it is stimulus itself that put the price of housing out of reach of many poor and poorer middle class. Let the people learn from their mistakes and let prices of houses fall to a level more affordable for all. Let's focus more on raising the standard of living in this country by educating people and giving them decent jobs. Let's get rid of the fraudulently obtained H1 and L1 visas so more Americans can work for a decent wage and afford their homes. Honestly, Americans need a little pain to learn some lessons about their excesses.
All of you worried about paying someone elses mortgage are blaming the victim.
When my house tripled in value (according to my bank) in 3 years that was a leftist plot? When 3 different companies traded my mortgage in the same time frame, like a bet at the track, that wasn't because of the "markets modernization act" ? When AIG sold insurance on the same bad debt over and over and over Xs 100 ....that's was us losers (working stiffs) manipulating the market??? Not traders on a floor somewhere in that alter universe of Porche and Mercedes driving uber successful grifters called traders?
Yea we're losers Rick. In the same way someone hands over his wallet when he has a knife in his ribs is a loser. A knife wielded by someone he was a loser to trust. Like Bear Stearns, AIG, Phil Grahm and the republicans.
Yup. I'm a loser even though I bailed @ the high. I saw it was a ponzi scheme
when I went in for a loan for my addition. I put my house on the market instead.
I walked with cash but I'm still a loser and so are all of you, because our country's been crippled.
I could read the writing on the wall...and your telling me these high end MBAs couldn't? Pulllleazze!!
I worked construction all my life for God sakes.
I saw it for what it was.
They saw it, they promoted it, they profited on it.
I hope Rick Santelli and every one of his ilk that didn't speak out end up in a homeless shelter. It would be the only justice.
You think I'm a lazy socialist? I think you need to pour concrete in
New England in January, put on roof shingles in Florida in July.
I'll work any of you paper pushers into a coronary.
Who do you think we are? Us real working Americans?
Oh...right..losers...w... you've made sure of that...
Obama gets a preferential $1.32 million home loan.... IS he getting bailed out?
The Federal Election Commission (FEC) notified Judicial Watch this week that it has “closed the file” on our complaint against Senator Barack Obama for allegedly accepting a below market rate mortgage loan in 2005 not available to the general consumer. In its factual and legal analysis, however, the FEC does confirm that Obama obtained a discounted loan but said no laws were violated.
So, to sum: Yes Barack Obama did receive a special below-market loan the rest of us couldn’t get. And a big “no” to the idea that he ought to be held accountable for it. Upset? So are we.
Here’s a bit of the back story.
According to Judicial Watch’s original FEC complaint, filed July 8, 2008, Obama reportedly received a home loan of $1.32 million at a rate of 5.625 percent, although the average going rate on that day according to two different surveys was between 5.93 and 6 percent. Unlike what was reportedly available for the general consumer, this special below market “super super jumbo” loan, was secured without an origination fee or discount points.
According to The Washington Post, which first raised questions about Obama’s mortgage, the favorable interest rate would save Barack Obama $300 a month, which over the life of the 30-year loan, would be at least $108,000. Judicial Watch contends these preferential loan terms constitute an illegal corporate campaign contribution to Obama.
As Judicial Watch noted in its complaint, Northern Trust has supported Barack Obama’s political campaigns for elected office since 1990. Moreover, Northern Trust Vice President John O’Connell essentially admitted the company provided Obama preferential loan terms because of his position in the U.S. Senate. (Obama was a senator at the time.) “‘A person’s occupation and salary are two factors; I would expect those are two things we would take into consideration,’ O’Connell told The Washington Post [emphasis added]. “This was a business proposition for us.”
Now, the FEC’s legal analysis dismissed O’Connell’s admission. The FEC based its decision to exonerate Obama largely on the fact that Northern Trust claims it provided preferential terms to other “similarly situated borrowers” in addition to the Obama. Northern Trust’s new explanation was that 8 of 14 of similarly situated borrowers (including Obama) received a mortgage loan discount.
Who are these unnamed “similarly situated” borrowers? Are they also elected officials? We don’t know because neither Northern Trust nor the FEC have been forthcoming with any details.
Needless to say, as I told the press this week, for the FEC to base its decision to excuse Obama on the fact that a few other unnamed borrowers also received sweetheart mortgages seems irresponsible. Look no further than the Countrywide which doled out corrupt to numerous public officials to see the massive hole in that logic.
The fact is Northern Trust’s president admitted Obama received the loan, in part, based on his position. This is improper and almost certainly constitutes an illegal campaign contribution (or gift). In our view, the FEC’s response is inadequate and it certainly does not serve the public’s interest.
He whipped up a lot more than just a bunch of traders. He spoke for millions of Americans who don't want their dollars taken from them and given to someone else. I'm not some wall street trader or upper class investor. Just a middle class, 40hr a week worker. I want the government to stay out of my pocket and just leave me alone. I don't want my money going to pay for some losers mortgage.
Santelli is right about the more fundamental idea that keynesian economics flat doesn't work. At the end of the day you cannot and willnot solve a debt problem by taking on more debt. If the admin were to truthfully argue for wealth rdistribution that was not deficit financed then there may be ground for an honest debate. however the admin will not frame the debate this way as they already know how it polls and it's not favorable to their position.
First of all, your rationale of someone "setting their sights on becoming a tycoon" is all wrong. If wealth is fixed, and no more will be created, you might have a point. The problem is, wealth isn't fixed. Some societies/ people are more efficient with the same set of resources. Thus more wealth could be created from the same or even less resources.
Also, look at average "poverty" in the U.S. and look at average "poverty" in Angola. Not the same, the poor are lifted from the abject poverty demonstrated in other countries. How many "poor" in other countries have cable T.V.? air-conditioning? a house/ apartment? You can beg/ lobby for any amount you want and give it to as many charities as you want. I prefer to be productive, thus creating more, for everyone.
The economic security of the middle class? Your version of "economic security" sounds good, BUT... No job is "secure". If you do not produce, you will not have a job. Just as if you were alone on an island you would have to harvest your own food make your own living area etc. Now the economy is so diverse and complex, you can specialize in one particular form of job, acquire money, and purchase what you cannot make for yourself. We all win when we all produce in a free market, and when we all have an incentive to do the best we can and profit from it.
Your entire write-off of the stock market/ trader mentality is disgusting. Who brings the goods you buy to your neighborhood? People who invest, people who trade, and people who want to do it for a profit. If I have no incentive to sell you something (profit), why should I take the risk of opening a factory, buying material and equipment, hiring people and transporting goods?
The blindness in this case is in fact yours, I don't believe there has ever been a time in any country in the world where people have the freedom to become as much as their will, intelligence, talent and skill will allow.
You're disgusting attempt at class warfare is not only despicable, it's a grotesque attempt to divide, even further, those who do from those who do not.
Don't forget, Mr. Santelli advocates the free market approach, meaning those involved in this mortgage/investment madness would be suffering as well. The difference is that when you let the market sort itself out, you tend to have fewer unintended consequences. When assets lose value, they fall until someone else feels they are at a fair price. In fact by artificially stopping the decline in housing prices, through gov't. policy, you may be preventing some of your "real Americans" from buying a home at a more affordable price.
Lastly, and most cogently: Why in the world would you sign a paper legally obligating you to pay for something and not understand what you are getting into.
P.S. if you have a retirement savings account (IRA/ 401k), or stock in a company you work for, are you part of the "investor class"?
Santelli nailed it and this is America! If you can't afford it, then it's time to go. Owning a home is NOT a civil right and since we are talking about people who still had mortgages, they did not OWN the property in the first place. Let them rent if need be. Let the investors buy up the foreclosures and resell them or rent them out at a better rate. Also, give the big tax breaks to the people with money, you know, the ones who HIRE people to work and people will be able to pay for their mortgages! They are just prolonging this thing out just like in the Great Depression and Japan's Dead Decade, which is what turned it into the Great Depression and Dead Decade. Japan figured it out and it took them 10 years. Cut back the gov. spending and give massive tax breaks to everyone, including most of all, the rich, and they will be able to hire more people to work, since believe it or not, businesses are here to make money, not hire people.
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