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Context of 'April 2, 2009: CNBC ‘Tea Party’ Commentator Shuns Anti-Tax Rallies'

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CNBC commentator Rick Santelli ‘rants’ about the Obama economic policies.CNBC commentator Rick Santelli ‘rants’ about the Obama economic policies. [Source: CNBC / Media Matters]In what is purportedly an impromptu on-air “rant,” CNBC financial commentator Rick Santelli exhorts viewers to join in what he calls a “Chicago tea party” to oppose the Obama administration’s plans to bail out several large financial institutions. Santelli’s rant comes during CNBC’s Squawk Box broadcast. [CNBC, 2/19/2009; CNBC, 2/19/2009] Santelli’s “impromptu rant” is actually preceded by a number of “tea party” protests and activities, and some of the protests’ organizers claim to have given Santelli the idea for his on-air “tea party” statement (see After November 7, 2008, February 1, 2009, and February 16-17, 2009).
'It's Time for Another Tea Party' - Broadcasting from the Chicago Mercantile Exchange, Santelli tells viewers in part: “The government is promoting bad behavior. We certainly don’t want to put stimulus pork and give people a whopping $8 or $10 in their check and think that they ought to save it.… I have an idea. The new administration is big on computers and technology. How about this, Mr. President and new administration. Why don’t you put up a website to have people vote on the Internet as a referendum to see if we really want to subsidize the losers’ mortgages? Or would they like to at least buy buy cars, buy a house that is in foreclosure… give it to people who might have a chance to actually prosper down the road and reward people that can carry the water instead of drink the water? This is America! How many people want to pay for your neighbor’s mortgages that has an extra bathroom and can’t pay their bills? Raise their hand! President Obama, are you listening?… It’s time for another tea party. What we are doing in this country will make Thomas Jefferson and Benjamin Franklin roll over in their graves.” Santelli also compares the US to Cuba: “Cuba used to have mansions and a relatively decent economy,” he says. “They moved from the individual to the collective. Now they’re driving ‘54 Chevys.” [RightPundits, 2/19/2009] Santelli’s “tea party” metaphor is in reference to the Boston Tea Party, a Revolutionary War protest against taxation by America’s British rulers. [New York Daily News, 2/20/2009]
Financial Traders Are the 'Real Americans' - Santelli tells viewers that the “real” Americans are not the working-class citizens trying to pay mortgages larger than they can handle, but the stock traders and other members of the Chicago Mercantile, New York Stock Exchange, and other members of the financial industry. [Business Insider, 2/19/2009] Santelli says, “We’re thinking of having a Chicago Tea Party in July (see After November 7, 2008), all you capitalists that want to show up to Lake Michigan, I’m gonna start organizing.” [Institute for Research & Education on Human Rights, 8/24/2010]
Cheers and Applause - Behind Santelli, traders erupt in cheers and applause at his comments. [College News, 2/20/2009]
Active Promotion of the Video - Within hours, CNBC begins promoting the video of Santelli’s comments, calling it “the rant of the year” and posting it on YouTube and its own website. [CNBC, 2/20/2009]
Protests, Organizations Begin Forming - Within minutes of Santelli’s broadcast, “tea party” organizations and groups begin forming (see February 19, 2009 and After).
More Studied Response - Three days later, Santelli will explain the thinking behind his comments, saying: “America is a great country and we will overcome our current economic setbacks. The issues that currently face us and the solutions to correct them need to be debated, vetted, and openly studied. This should not be an issue about the political left or right. This is an issue of discourse on a topic that affects the foundation and principles that make our country great… free speech, contract law, freedom of the press, and most of all the legacy we leave our children and grandchildren.” [CNBC, 2/22/2009]
Human Rights Organization: 'Racial' Component to Santelli's Rhetoric - In 2010, a report by the Institute for Research & Education on Human Rights (IREHR) will say that “[a]n unstated racial element colored Santelli’s outrage over the Obama administration’s home mortgage rescue plan.” The report will explain that many of the “losers” responsible for the “bad loans” Santelli is criticizing were made by banks that “disproportionately targeted communities of color for subprime loans.” Santelli’s “losers” are largely African-American or Hispanic borrowers who had “been oversold by lenders cashing in on the subprime market. Their situations were worsened by derivatives traders, like Santelli, who packaged and re-packaged those loans until they were unrecognizable and untenable.” [Institute for Research & Education on Human Rights, 8/24/2010]

Entity Tags: CNBC, Chicago Mercantile Exchange, Barack Obama, Rick Santelli, Institute for Research & Education on Human Rights, New York Stock Exchange, Obama administration

Timeline Tags: Global Economic Crises, Domestic Propaganda, 2010 Elections

Mark Ames.Mark Ames. [Source: Guardian]CNBC’s Rick Santelli has become something of a superstar among conservative media pundits and others exasperated by the Obama economic bailouts, after engaging in a purportedly impromptu “rant” during an on-air broadcast (see February 19, 2009). Investigative reporters Mark Ames and Yasha Levine discover that Santelli’s rant may have been a pre-planned incident timed to coincide with the launch of a so-called “tea party movement” predicated on opposing the Obama administration and supporting conservative and Republican ideas and agendas. In the hours and days following Santelli’s appearance on CNBC, the authors write, “[a] nationwide ‘tea party’ grassroots Internet protest movement has sprung up seemingly spontaneously, all inspired by Santelli, with rallies planned today in cities from coast to coast to protest against Obama’s economic policies.”
Connections to the Koch Family - Ames and Levine write that Santelli’s CNBC “rant” was “a carefully-planned trigger for the anti-Obama campaign. In PR terms, his February 19th call for a ‘Chicago Tea Party’ was the launch event of a carefully organized and sophisticated PR campaign, one in which Santelli served as a frontman, using the CNBC airwaves for publicity, for the some of the craziest and sleaziest right-wing oligarch clans this country has ever produced.” Ames and Levine are referring to the Koch family, headed by Fred Koch (see 1940 and After), the billionaire co-founder of the extremist John Birch Society (see March 10, 1961 and December 2011) and whose sons are heavy donors to right-wing think tanks and advocacy groups such as the Cato Institute (see 1977-Present) and FreedomWorks (see 1984 and After).
ChicagoTeaParty.com - On the air, Santelli said, “We’re thinking of having a Chicago tea party in July, all you capitalists who want to come down to Lake Michigan, I’m gonna start organizing.” Within minutes, Matt Drudge of the Drudge Report had posted headlines about the “tea party” rant on his Web site. Within hours, a new Web site, chicagoteaparty.com, had appeared, featuring a YouTube video of Santelli’s rant and calling itself the official home of the Chicago Tea Party. The domain name had been registered months before by right-wing media figure Zack Christenson (see August 2008), but had remained dormant until after Santelli spoke on CNBC. Ames and Levine note that Christenson bought the domain around the same time that Milt Rosenburg, the Chicago talk show host whom Christenson produces, began attempting to link then-presidential candidate Barack Obama with “left-wing terrorist” William Ayers (see August 2008). Ames and Levine write: “That Rosenberg’s producer owns the ‘chicagoteaparty.com’ site is already weird—but what’s even stranger is that he first bought the domain last August, right around the time of Rosenburg’s launch of the ‘Obama is a terrorist’ campaign. It’s as if they held this ‘Chicago tea party’ campaign in reserve, like a sleeper-site. Which is exactly what it was.”
The Sam Adams Alliance - The ChicagoTeaParty.com Web site, Ames and Levine report, is part of a larger network of conservative Web sites set up over the last few months under the auspices of the “Sam Adams Alliance” (SAA), an organization linked to the Koch family and to FreedomWorks, a public relations group funded by Koch and headed by former Republican House Majority Leader Dick Armey (see April 14, 2009). The SAA is a Chicago-area libertarian/conservative group named for Samuel Adams, who led the Boston Tea Party protest in 1773. [Playboy, 2/27/2009] In 2008, the New York Times described the SAA as having “started an ambitious project this year to encourage right-leaning activists and bloggers to get online and focus on local and state issues.” [New York Times, 7/19/2008]
OfficialChicagoTeaParty.com - Another Web site, officialchicagoteaparty.com, went live on February 19 as well. That site is registered to Eric Odom, a Republican specializing in faux-grassroots PR campaigns sometimes called “astroturf” (see April 15, 2009). Odom has worked with Koch Industries, a large oil and natural gas corporation and the source of the Koch family fortune, in supporting offshore oil-drilling legislation. Odom was, until January 2009, the “new media coordinator” for the Sam Adams Alliance. Upon his departure, the SAA removed Odom’s name from its Web site. The SAA also removed any mention of Koch’s funding, or any other connections between Koch and the organization, from its site. Two of the SAA’s board members, Eric O’Keefe and Joseph Lehman, are tied both to Koch and to FreedomWorks.
FreedomWorks - In the hours after Santelli’s rant, FreedomWorks posted a large photo of Santelli on its Web site’s front page with the caption: “Are you with Rick? We are. Click here to learn more.”
Other Sites - In the hours after Santelli’s rant, other Web sites such as Right.org, promoting a tea party support group that purports to be a citizen-launched organization “created by a few friends who were outraged by the bailouts” and headed by “Evan and Duncan,” and numerous pro-tea party Facebook pages, were launched. Right.org is sponsoring a $27,000 prize for an “anti-bailout video competition.” Ames and Levine ask: “Who are Evan and Duncan? Do they even really exist?”
No Connections on the Surface - Ames and Levine note that the numerous Web sites and Facebook pages have remarkable similarities in language and appearance, “as if they were part of a multi-pronged advertising campaign planned out by a professional PR company. Yet, on the surface, they pretended to have no connection. The various sites set up their own Twitter feeds and Facebook pages dedicated to the Chicago Tea Party movement. And all of them linked to one another, using it as evidence that a decentralized, viral movement was already afoot. It wasn’t about partisanship; it was about real emotions coming straight from real people.”
Santelli and the Tea Party Organizers - Ames and Levine ask why Santelli, and CNBC, would “risk their credibility, such as it is, as journalists dispensing financial information in order to act as PR fronts for a partisan campaign.” Santelli’s contract with CNBC is about to expire, they note. Until the “tea party” rant, Santelli was an obscure financial commentator with few prospects. Now, though, he is a “hero” of the right. As another Chicago tea party organization, the Daily Bail, wrote on its site: “Rick, this message is to you. You are a true American hero and there are no words to describe what you did today except your own. Headquartered nearby, we will be helping the organization in whatever way possible.” Ames and Levine speculate that Santelli may have been brought into the fold by one of his CNBC colleagues, Lawrence Kudlow, who himself has strong connections to FreedomWorks. [Playboy, 2/27/2009] Steve Megremis of the Daily Bail will call Ames and Levine’s allegations about his Web site’s involvement “categorically untrue,” writing: “It’s unfortunate because I believe that the article did some great investigative work and then at the end they threw me under the bus for no apparent reason. Apparently, the authors just assumed we were part of this conspiracy because of my own personal excitement about the prospect of a mid-summer tea party.” Megremis will post a response on his site, but the response will soon disappear. [Barry Ritholtz, 2/28/2009]
Playboy Removes Article - By March 2, Playboy will remove the Ames and Levine article from its Web site. No explanation is offered. The article will instead become available on a Web site called “The Exiled,” which bills itself as an “alternative” press outlet. [Jeffrey Feldman, 3/2/2009]

Entity Tags: Rick Santelli, William Ayers, Playboy, Sam Adams Alliance, Yasha Levine, The Exiled, Steve Megremis, Zack Christenson, Obama administration, Milt Rosenburg, Right.org, Mark Ames, Dick Armey, CNBC, Cato Institute, Eric O’Keefe, Chicago Tea Party, Eric Odom, FreedomWorks, Lawrence Kudlow, Joseph Lehman, Matt Drudge, John Birch Society, Fred Koch

Timeline Tags: Domestic Propaganda

Rick Santelli, the CNBC commentator whose on-air “rant” is credited for sparking the right-wing “tea party” movement (see February 19, 2009 and February 27, 2009), refuses to take part in the upcoming April 15 anti-tax rallies being put on across the country by various “tea party” organizations (see April 15, 2009). CNBC spokesman Brian Steel says Santelli is “not going and not in any way involved” in the protests. Fox News anchors Neil Cavuto and Sean Hannity are joining with protesters in Sacramento and Atlanta, respectively, and former House Speaker Newt Gingrich plans to attend a rally in New York. Organizers say over 300 different protests will take place across the nation. Eric Odom, who owns a Chicago-based “tea party” Web site, says, “We have fully confirmed protests in 360 cities” and he is “very confident that all the protests will happen.” Odom predicts that the rallies featuring Cavuto and Hannity will bring at least 5,000 to 10,000 participants. He stresses that the protests will be made up of people from “all walks of life,” not just conservatives opposed to the Obama administration’s policies. Odom does not mention Santelli’s non-involvement. [Huffington Post, 4/2/2009]

Entity Tags: Newt Gingrich, Brian Steel, CNBC, Fox News, Eric Odom, Rick Santelli, Neil Cavuto, Sean Hannity

Timeline Tags: Domestic Propaganda

A ‘tea party’ protester carries a sign during a Chicago rally.A ‘tea party’ protester carries a sign during a Chicago rally. [Source: Huffington Post]Fox News devotes much of its day’s coverage to the conservative, anti-tax “tea parties” taking place around the nation. The network has promoted the tea parties in the previous weeks (see April 6-13, 2009, April 15, 2009, and April 15, 2009). Fox hosts Glenn Beck, Neil Cavuto, Sean Hannity, and Greta Van Susteren all provide extensive live coverage from the sites of separate events, which the network promotes as “FNC [Fox News Channel] Tax Day Tea Parties” (see October 13, 2009). Many of the network’s shows, such as America’s Newsroom, Beck’s show, and others provide on-air and online information about the times and locations of events, and broadcast interviews with event organizers. Beck tells his viewers they can “[c]elebrate with Fox News” at any of four “FNC Tax Day Tea Parties.” Beck, who is at San Antonio’s Alamo for an event (see April 15, 2009) tells his audience: “If you can’t make the one in San Antonio, please go to the one with Neil or with Sean in Atlanta, that’s supposed to be great, Greta is in Washington, DC. Just get out and let your face be seen.” Hannity encourages viewers to send in their “Tax Day Tea Party” videos for on-air broadcast. Cavuto’s guest host in the studio, Stuart Varney, says plainly, “It’s now my great duty to promote the tea parties.” Fox News’s Web site, “Fox Nation,” actively promotes the events, with links to blogs, maps, videos, and event calendars. The network even hosts its own “virtual tea party” on its Web site. Fox host Gretchen Carlson suggests that viewers hang teabags from their cars’ rearview mirrors, “like fuzzy dice.” Fox Business anchor Cody Willard tells viewers to “figh[t] the fascism” of the current administration by attending a “tea party.” He asks his viewers, “Guys, when are we going to wake up and start fighting the fascism that seems to be permeating this country?” He adds that in his opinion, conservatives and liberals are “both fascists who are taking my money and building up corporate America with my welfare.” And Fox Business anchor David Asman advises his viewers to buy “tea party” merchandise. The push is successful: after the April 15 protests, many mainstream news outlets report that Fox News reports helped drive crowds to protests. CNN and Washington Post media critic Howard Kurtz will say, “I don’t think I’ve ever seen a news network throw its weight behind a protest like we are seeing in the past few weeks with Fox and these tea parties.” [Media Matters, 9/11/2009]

Entity Tags: Stuart Varney, Neil Cavuto, Sean Hannity, Gretchen Carlson, Cody Willard, David Asman, Fox News, Glenn Beck, Greta Van Susteren, Howard Kurtz

Timeline Tags: Domestic Propaganda

US News and World Report reporter Paul Bedard notes that CNBC commentator Rick Santelli is being lauded as a “founding father” of the right-wing “tea party” movement. Santelli is cited in a number of sources, including the recently published A New American Tea Party by former Bush administration official John O’Hara, as having “kicked off” the tea party movement with his “impromptu” rant against the Obama administration’s economic policies on CNBC (see February 19, 2009 and February 27, 2009). Santelli has refused to become a tea party spokesman (see April 2, 2009), but he says, “I still think that all the dynamics that I felt as it was happening are still in place today.” Santelli adds that like many “tea partiers,” he opposes the Obama administration’s health care reform efforts. O’Hara has written, “Santelli was very important” to the tea party movement. Before Santelli’s on-air rant, most Americans had just accepted the Bush and Obama administration claims that they had to bail out Wall Street and Detroit to avert catastrophic failures. “Santelli said what a lot of people were thinking and afraid to say” when he told viewers that “government is promoting bad behavior.” Santelli says: “It’s very gratifying to me that four minutes out of my life made a difference.… It seems to me that any reason for people getting more active in running or taking part in politics and government I think is just terrific.” Santelli says he has repeatedly turned down offers to run for public office in his home state of Illinois. [US News and World Report, 1/25/2010] In an interview shortly after the US News and World Report article is published, Santelli says that he and the “tea parties” share many goals and beliefs. “I feel bad to a certain extent because, even though I may share many of the philosophies of the tea party and many believe I was instrumental in being a catalyst for its formation, I also think that considering what I do for a living—and I take it very seriously—I try to avoid political ties.” He then criticizes the mainstream media for not paying more attention to the tea parties and the economic issues that motivate them, saying: “Most of the mainstream coverage of most of the crisis—the economy, the road to get here, and the tea party—has been very much lacking. The fact that many traditional media avenues that have ignored or belittled the tea parties all of a sudden seem to be spending an inordinate amount of time trying to understand and explain them, I think that alone gives credibility to their girth.” [Daily Caller, 2/2/2010]

Entity Tags: John O’Hara, Rick Santelli, Paul Bedard

Timeline Tags: Domestic Propaganda

Four of Fox News’s presumptive presidential candidates. Clockwise from upper left: Sarah Palin, Newt Gingrich, Rick Santorum, and Mike Huckabee.Four of Fox News’s presumptive presidential candidates. Clockwise from upper left: Sarah Palin, Newt Gingrich, Rick Santorum, and Mike Huckabee. [Source: Huffington Post]New York Magazine reporter Gabriel Sherman profiles Fox News chairman Roger Ailes (see October 7, 1996), who also serves as a Republican campaign consultant (see 1968, January 25, 1988, and September 21 - October 4, 1988). According to close friends and advisers to Ailes interviewed by Sherman, Ailes wants far more than the continued ratings and advertiser success of Fox News—he wants the network to steer one of its own into the White House in 2012 (see October 2008). He is tremendously influential; a Republican strategist tells Sherman: “You can’t run for the Republican nomination without talking to Roger. Every single candidate has consulted with Roger.”
Letdown? - Ailes has been keenly disappointed in the results of his network’s official and unofficial candidates so far. Former Alaska governor and Fox commentator Sarah Palin (see September 15-16, 2010), who has not yet announced her candidacy for the Republican presidential nomination, is polling at around 12 percent among Republican voters. Official presidential candidates Newt Gingrich, the former speaker of the House, and Rick Santorum, a former senator, who both are commentators for Fox, have even lower numbers, at 10 percent and 2 percent respectively. Ailes has asked Governor Chris Christie (R-NJ), who is not a Fox employee, to run; until recently, Fox News was enthusiastically promoting the putative presidential run of billionaire “birther” Donald Trump (see March 17, 2011). Ailes has envisioned General David Petraeus as a potential candidate, but Petraeus has instead accepted the post of CIA director. “He thinks things are going in a bad direction,” says a Republican close to Ailes. “Roger is worried about the future of the country. He thinks the election of [President] Obama is a disaster.” None of the current crop of candidates meets Ailes’s expectations. Ailes is particularly disappointed in Palin; according to the same Republican, Ailes considers her “an idiot”: “He thinks she’s stupid. He helped boost her up. People like Sarah Palin haven’t elevated the conservative movement.” After Democratic Representative Gabrielle Giffords was shot in January 2011, and other media outlets focused on Palin’s use of gunsight graphics to “target” Giffords and other vulnerable Democrats in the 2010 election (see March 24, 2010), according to Sherman, “Ailes recognized that a Fox brand defined by Palin could be politically vulnerable.” After the Giffords shooting, Ailes told an interviewer, “I told all of our guys, ‘Shut up, tone it down, make your argument intellectually.’” Ailes was infuriated when Palin refused his advice to remain quiet until after the memorial service, and accused her critics of committing “blood libel,” a phrase often seen as anti-Semitic. The problem with Palin was further exacerbated when she argued about the amount of work Fox expects her to do: she does not want to host special broadcasts or other tasks the network expects of her. In March 2011, Fox suspended the contracts of Gingrich and Santorum so they could run their campaigns without legal or ethical entanglements. Shortly thereafter, Huckabee chose to remain at Fox and abandon his plans for a primary challenge. The network is still waiting for Palin’s decision whether to run for president.
Creation of the Tea Party - While Ailes and Fox News did not directly create the “tea party” “grassroots” movement, Ailes was involved in its creation and promotion from its outset (see February 19, 2009, February 27, 2009, and April 15, 2009). Ailes has always been somewhat leery of having Fox News too closely associated with the burgeoning movement (see March 13, 2009 and After, March 23-24, 2009, April 2, 2009, April 6-7, 2009, April 6-13, 2009, April 8, 2009, April 13-15, 2009, April 15, 2009, April 15, 2009, April 16, 2009, May 13-14, 2009, July 28, 2009, August 3, 2009, August 28, 2009, September 12, 2009, and September 12, 2010), and at one point banned Fox News host Sean Hannity from hosting a tea party rally. However, according to Sal Russo, a former Reagan aide and the founder of the national Tea Party Express tour, “There would not have been a tea party without Fox.” Fox News has promoted a number of successful “tea party” candidates (see May 14, 2008 - February 2010), including former host John Kasich (see March 27, 2008 - June 1, 2009 and After), who won the Ohio gubernatorial election in 2010. Before that election, Gingrich, still a Fox News commentator at the time, said that he was confident the “tea party” would evolve into “the militant wing of the Republican Party” (see April 21, 2010). Ailes used some of the same “astroturf” tactics (see February 27, 2009 and April 14, 2009) in developing the “tea party” as he did when he represented tobacco companies such as R.J. Reynolds, creating phony, seemingly independent “front” groups to push the “tea party” messages in the media. [New York Magazine, 5/22/2011]

Entity Tags: John Kasich, Donald Trump, David Petraeus, Christopher J. (“Chris”) Christie, Fox News, Gabrielle Giffords, Rick Santorum, Sal Russo, Gabriel Sherman, Newt Gingrich, Sean Hannity, Sarah Palin, Roger Ailes

Timeline Tags: Domestic Propaganda, 2012 Elections

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