As Calculated Risk notes "some say this may be the rant of the year."
CNBC’s on-air editor, Rick Santelli, calls ordinary Americans who face losing their homes to foreclosure "losers" who don’t deserve government help.
The Obama Administration is trying to slow down the foreclosure rate by encouraging (via subsidies) lenders to reduce payments and allowing another 3-4 million homeowers with mortgages owned/supported by Fannie/Freddie to refinance, but Santelli apparently thinks that’s unAmerican, deserving of another "tea party."
America’s homeowners have just lost about $6 trillion in home value in the last year, largely because the people who are supposed to oversee and finance the economy didn’t do their jobs, but Santelli thinks we should let Americans facing foreclosure just fail. That way, more patriotic Americans like the traders surrounding him — the guys who made a bundle riding the housing bubble economy — can scarf up the properties for pennies on the dollar and get rich.
Thanks, Rick and CNBC, for making the case for a surcharge on transactions, greater securities regulations, and an increase in the top marginal tax rates.
H/t to the much quicker Elliott.