Reader Pam Spears emails me:
Rick Santelli simply vented the frustration of millions of Americans who are working, continue to pay their bills and are very angry at being forced to reward the "Bad boys"(Wall street greed and homeowner greed) or the world comes to an end. Perhaps the focus should be on rewarding the prudent. The economy has slowed to a trickle because prudent people can't tell who's honest and who's isn't. That is as true of the bankers as it is of ordinary Americans. Everyday there's a new scandal in the news and so far the only accounting has been from the same senators and government entities that ignored the red flags in the past. Hardly a positive step forward.
In our household we stopped all discretionary purchases last September when Lehman failed. Our house value has tanked, and so have our 401k's. Those values are part of the larger issue out of our control and affecting the whole world. Our day to day household spending however, continues to be completely within our control.
Are we all poorer, absolutely! But it's time for the government to focus on calming and rewarding the people who continue to work to pay their credit cards and mortgages on time. Those are the customers that GM and Macy's and GE etc need to get the economy going. The paradox of thrift and velocity of money are real and needed to get the economy moving. However continuing to force banks to again loan to deadbeat borrowers and creating a huge stimulus that does not give every American an equal $$ amount only increases the angst and sends the economy deeper into the tank.
Thank you again Rick Santelli, I finally think the world heard what I've been feeling.
PS. This note applies to the rest of the world's governments also, reward good behavior. Me: Remember the phrase "Work hard and play by the rules"?