Rick Santelli’s Chicago Tea Party

by Marilou Long on February 21, 2009

in Economic Indicators,Investment Strategies

Rick Santelli really hit a nerve with his on-air rant about fairness and encouraging bad behavior by using taxpayer money to modify mortgages.  The hits on YouTube are nearing 900,000.  He called in jest for a Chicago Tea Party to protest, but other upset taxpayers took his call to heart and have been attending Tea Party Protests around the country to call for fiscal discipline.

I think that we run a risk of prolonging the housing bust if the government meddles too much in modifying mortgages.  Many of the people who are having trouble paying their mortgage won’t even be able to qualify for a loan on a reduced amount of principal.  All this uncertainty will keep the market from finding a clearing price which is what is needed to move all the toxic assets.  It is also keeping prospective buyers who have been waiting and saving up for a down payment from making a decision.  There is even a website called AngryRenter.com.  http://angryrenter.com/


 

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