Rick Santelli v. Princeton Professor

by Laura Ehrenberg-Chesler on October 20, 2011

in Credit Crisis,Economic Indicators,housing,politics

In 2009, Rick Santelli from CNBC went on his rant about the housing market, and government proposed bailout measures.  It was the origin of what we now call the “Tea Party”.  The Tea Party has little to do with anything but less government, and more personal responsibility, though there have been many attempts to paint it as a radical right wing movement.

In today”s edition of the Wall Street Journal,  Alan Blinder, a Princeton professor and former vice chairman of the  Federal Reserve has an editorial piece about how to fix the “housing mess”.  In the article, he casino online references Rick”s rant and is roundly critical of his position, which was to let the market find a bottom in housing, and keep the government from interfering.

Professor Blinder”s solutions seem to involve more of the same type of bailouts, and interference from the government and the GSE”s like Fannie Mae and Freddie Mac, that caused the problems to begin with.  Go back and look at how Congress forced banks to lend to individuals who could not afford to own homes, in addition to putting their former colleagues into positions of power at these very same GSE”s.

Go back to the video of Rick which is embedded on this blog post.  It will become abundantly clear that more of the same has not helped, and will not help as suggested by Mr. Blinder.  Let”s try something different like letting market forces work, unimpeded by the perils of reliance on government.


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