I don't think that was a market moving event. It was all long range political blarney. He was right in my book. I've admired Rick Santelli for a long time because he has consistently just interpreted what is going on in the pit and never fell into that RAH! RAH! the Dow is going to 20k bullspit that all the rest of CNBC did. I've watched him argue and I watched all the others laugh at him in 2007 when he was the only one that had the balls to call a spade a spade when the subprime scandal just began to hit. He knew what was coming and he held back his emotions and didn't grandstand back then. I think he is just starting to really get riled at himself for not being more vocal about what has been going on all along.
I don't get what was irresponsible about taking a loan to buy a house on 30% down, and then getting laid off with no fault of your own, with the price of your house going down through no fault of your own. Hindsight is alway good, but nobody knew this was coming. To say one was irresponsible when making a good decision at the time, and then losing their job and having their 401k's wiped out is going too far. Yes, there will be the percentage that did take excessive risk but to gamble and let everyone suffer for these people by denying help to those who need it is senseless. Let's go on, WE can all put a stop to this. Let's get the cash flowing in our country again and not just concentrate and let it remain stagnant.
1. MANY people saw this coming...the signs were there and very strong. it would be more accurate to say that most chose to ignore the signs and forge ahead anyway.
2. 30% down? Now truthfully, how many (what %) borrowers have the liquidity to put 30 % downpayment on their homes???
3. Losing a job, decline in 401K net worth. . . years ago people used to "save for a rainy day".... and could withstand a lean period.....didn't waste money on cable TV, gym club memberships, overprice sporting events on a regular basis etc.
BOTTOM LINE: 75% of the population was trying to live far above their means with no safety net in place....They were living in a "bubble" world....large salaries, large homes, large mortgage, large spending for vehicles, travel, and social life. This has to happen and continue happening to regain a logical base.