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Profile: Joe Weisenthal

Joe Weisenthal was a participant or observer in the following events:

The media responds strongly to CNBC commentator Rick Santelli’s call for a “tea party” to oppose the Obama economic stimulus. [CNBC, 2/20/2009]
Santelli 'Equally Complicit' in Economic Crisis - Writing for College News, Jon Graef notes that Santelli has opposed virtually all of the Obama economic policies, including all the bailouts of the mortgage and automobile industries. He lauds Santelli for “embracing the democratic possibilities that the Internet allows,” but says that “Santelli and his ilk are equally complicit in the housing/finance crises as those who refused to live responsibly within their means. If Santelli doesn’t like the details of the mortgage bailout, then why is continuing to work in conjunction with an industry that received its own government bailout—and promptly spent it on press releases and product placement?” [College News, 2/20/2009]
'Mad as Hell' - Writer Jerome Corsi, who penned a lurid and highly inaccurate “biography” of President Obama before the 2008 election (see August 1, 2008 and After), notes that some are comparing Santelli’s rant to that of fictional news anchor Howard Beale in the movie Network, where Beale screams, “I’m mad as hell, and I’m not going to take this any more!” [WorldNetDaily, 2/19/2009]
'Investors Have It All Figured Out' - Market analyst Donald Luskin writes that Santelli “went a little bit berserk in his broadcast… warning that all the bailouts, programs, rescues, stabilizations, and stimuli are turning our capitalist nation into Cuba. He got the floor traders so stirred up it seemed for a minute there that an armed revolution was going to start at any moment.” Luskin continues, with at least some sarcasm: “Santelli is right. This country is being rescued to death. The voters may be fooled, for a while at least. But obviously investors have it all figured out.” [Smart Money, 2/20/2009]
'Santelli Hates Poor People' - The avant-garde Washington political gossip blog Wonkette calls Santelli “unlikable” for calling Americans forced to default on their mortgage “losers,” and calls his on-air rant “apesh_t.” Commentator Jim Newell continues, “Maybe Obama’s plan isn’t so great, who knows, but one thing is clear, and that’s that Rick Santelli hates poor people—and by poor people we mean the bottom 50-90 percent of per capita income earners.” [Jim Newell, 2/20/2009]
'Speaking Truth to Ego and the Far Left' - Financial blogger Thomas Smicklas writes that Santelli “sp[oke] truth to ego and the far left.… It is becoming more apparent each day of the new administration those who work hard, save, and are responsible citizens are getting hosed by the practice of class warfare.… Ladies and gentlemen, the politics of vote buying, legal extortion, and the re-distribution of wealth to the lazy and ill-educated has begun in earnest. And we haven’t even touched upon a deteriorating foreign policy. Thanks to CNBC’s Rick Santelli and the workers in the pit that deal in commodities who finally expressed it. We can all be grateful for the lesson.” [Thomas Smicklas, 2/20/2009]
Rewarding Those Who Caused the Bad Lending - The Huffington Post’s Jason Linkins writes that right-wing media figures such as Matt Drudge are “freaking out” over Santelli’s rant, “fomentin’ a revolution on the trading floor of the Chicago Mercantile Exchange. He’s assembled a small army of half-hearted, floor-trading broheims to cheer and hoot as he rails against President Obama’s plan to not immediately foreclose on everybody and kick them out into the streets, because that rewards ‘bad behavior,’ and clearly what we should be doing is rewarding people who incentivized all the risky lending, because until the house of cards collapsed, things were looking pretty for everybody!” [Huffington Post, 3/22/2009]
'Hysteria a la Fox News' - Columnist Mary McNamara calls Santelli’s rant “colorful,” but says Santelli’s “rhetoric/hysteria a la Fox News is damaging to national discourse.” The financial crisis has hit hardest, not in the businesses and mansions of the people Santelli works with, but in the working-poor and lower-middle class families. “They work hard,” she writes. “They weren’t buying luxury homes. Sure, there were a few speculators. But mostly, they just wanted a little piece of the American dream, especially good schools for their kids and closer proximity to their work.” [MultiChannel (.com), 2/19/2009]
'Money for Idiots' - Conservative columnist David Brooks refers to Santelli’s “lustily” delivered rant in defending the necessity for the government to stabilize an economy sliding into chaos. [New York Times, 2/19/2009]
'Pretty Awesome' - New York Magazine’s Jessica Pressler writes that she finds Santelli’s “call for revolution… pretty awesome.” She writes, “Santelli is pissed off about the Obama administration’s bailout measures so far, in particular the housing plan the administration announced yesterday, and he wants America to stand up and revolt before we turn into some kind of not-even-tropical version of Cuba.” [New York Magazine, 2/19/2009]
Favorable Coverage from Limbaugh, Hannity, Drudge - Associated Content’s Mark Whittington notes that Santelli’s rant is garnering tremendous coverage from conservative commentators Rush Limbaugh, Sean Hannity, and Drudge. “More importantly,” he writes, “Santelli’s attack on the Obama mortgage bailout scheme seems to reflect a growing disquiet over President Obama’s spending schemes, which started with the stimulus package, and will now not only include a bailout for mortgages but also a new bailout for the car companies and perhaps even a second stimulus.” [Associated Content, 2/19/2009]
'Almost Inciting a Riot' - Business Insider’s Joe Weisenthal observes: “CNBC’s RIck Santelli is always pugnacious, but he outdid himself today, almost inciting a riot among the traders in Chicago when talking about Obama’s housing plan. Suffice to say, the capitalists on the floor do not want to pay for anyone else’s mortgage. Neither do we. That being said, his insistence that these guys represent the ‘real America’ won’t ultimately play that well among most people.” [Business Insider, 2/19/2009] Progressive columnist and blogger John Amato calls himself “disgusted” at Santelli’s “embarrassing diatribe at the expense of the American people,” and writes that watching Santelli “made me realize that these Wall Street frat boys still don’t get it. America is sick and tired of the riches they have manipulated out of the system and then be lectured by people who make more money than 100 middle class workers put together.” Referring to Santelli’s experience as a trader in the high-risk derivative market, an area that many have blamed for causing much of the economic downturn, Amato writes sarcastically, “The next time I want advice on how to live I’ll be sure to ask a man who was deeply involved in ‘derivatives.’” He concludes: “Don’t blame the crooked mortgage lenders who were having bidding wars to acquire their next mansion, but blame first time buyers or average Americans, the lifeblood of our society and call them ‘losers.’ Santelli needs to own that he is the loser and if it wasn’t for the gasbag insider crowd that gives his words a modicum of respect, crowds would gather outside his home with torches and pitchforks.” [John Amato, 2/21/2009]
'Voice of the Silent Majority' - Progressive author and blogger Jane Hamsher writes: “Rick Santelli is just the explosive id of CNBC, saying what everyone else thinks. Somehow it’s not the pervasive institutional rot, the criminal malfeasance at the highest levels, or the chairman of the Federal Reserve telling Americans over and over again that housing prices would never go down. They have convinced themselves that the real problem is once again people at the absolute bottom of the economic scale. If they’d only used appropriate ‘judgment’ and lived within their means, we’d all be fine. Santelli is now being promoted by CNBC as a truth teller, a voice of the… ‘silent majority.’ ‘Would you join Santelli’s “Chicago Tea Party?”’ they want to know. With 170,000 respondents, 93 percent say yes! I guess it was only a matter of time before a hero emerged.” [Jane Hamsher, 2/20/2009; CNBC, 2/20/2009]

Entity Tags: Jessica Pressler, Thomas Smicklas, Sean Hannity, David Brooks, Jane Hamsher, Jerome Corsi, Donald Luskin, Rush Limbaugh, Jason Linkins, Obama administration, Jim Newell, Joe Weisenthal, Jon Graef, Rick Santelli, Mark Whittington, Matt Drudge, Mary McNamara, John Amato

Timeline Tags: Global Economic Crises, Domestic Propaganda

Alan Binder.Alan Binder. [Source: PBS]TPMDC reporter Brian Beutler notes that many Congressional Republicans, led by but not limited to those who consider themselves “tea party” members (see April 30, 2011), are heeding the advice of a small number of unorthodox financial experts who go against the “common wisdom” that a possible credit default by the US would lead to potential catastrophe among national and global financial markets. The issue centers on Congressional Republicans’ insistence that they will not raise the US debt limit, or debt ceiling, unless the Obama administration gives them a wide array of draconian spending cuts; in the past, raising the US debt limit has been a routine matter, often handled with virtually no debate and little, if any, fanfare. Beutler says that the most influential of these advisors is Stanley Druckenmiller, who made billions managing hedge funds. Druckenmiller’s advice was that the US could weather several days of missed interest payments if the US debt ceiling were not immediately raised without serious consequences. House Budget Committee chairman Paul Ryan (R-WI), House Majority Leader Eric Cantor (R-VA), and Senator Pat Toomey (R-PA) are all echoing Druckenmiller’s claims in media interviews and in Congress. Beutler writes that the newfound popularity of Druckenmiller’s claims “alarms everyone from industry insiders to Treasury officials to economists, conservative and liberal, to non-partisan analysts who say the consequences of the US missing even a single interest payment to a debt-holder would be catastrophic—even if it was followed immediately by a legislative course correction.” Former Federal Reserve chairman Alan Binder, now a Princeton economist, warns that if the US were to default on its debt even for a few days, the US dollar would crash in value, interest rates would spike, and the US economy would find itself spiraling into a full-blown recession. Binder writes: “For as long as anyone can remember, the full faith and credit of the United States has been as good as gold—no one has better credit. But if investors start to see default as part of US political gamesmanship, they will demand compensation for this novel risk. How much? Again, no one can know. But even if it’s as little as 10-20 basis points on the US government’s average borrowing cost, that’s an additional $10 billion to $20 billion in interest expenses every year. Seems like an expensive way to score a political point.” JPMorgan CEO Jamie Dimon agrees, telling PBS viewers: “Every single company with treasuries, every insurance fund, every—every requirement that—it will start snowballing. Automatic, you don’t pay your debt, there will be default by ratings agencies. All short-term financing will disappear. I would have hundreds of work streams working around the world protecting our company for that kind of event.” JPMorgan issued a statement after Dimon’s comment saying that even a brief default would trigger “a run on money market funds… that would leave businesses unable to meet their short-term obligations and teetering on the bring of bankruptcy.” JPMorgan compares the money-market run to the aftermath of the 2008 Lehman Bros collapse, which sent the US into a recession. Analyses and reports by the Treasury Borrowing Advisory Committee and Government Accountability Office have warned of dire consequences following a default even of a day or two. Toomey and others insist that a credit default would simply make the Treasury Department find other ways to avoid missing interest payments, but, economists and financial leaders warn, the consequences of that would be enormous. Binder writes: “If we hit the borrowing wall traveling at full speed, the US government’s total outlays—a complex amalgam that includes everything from Social Security benefits to soldiers’ pay to interest on the national debt—will have to drop by about 40 percent immediately. That translates to roughly $1.5 trillion at annual rates, or about 10 percent of GDP. That’s an enormous fiscal contraction for any economy to withstand, never mind one in a sluggish recovery with 9 percent unemployment.” Druckenmiller and some Republicans believe that forcing a credit default would end up benefiting the country, as the Obama administration would give in to Republican demands for enormous spending cuts in return for Republicans’ agreement to raise the debt ceiling. Business Insider reporter Joe Weisenthal recently wrote: “Of course, a default by the world’s most stable nation would probably have impacts in ways nobody can imagine, but one thing seems to be clear. The notion—as some people suggest—that a default would somehow increase US credit-worthiness is absurd.” [Business Insider, 4/20/2011; New York Times, 4/26/2011; TPMDC, 5/20/2011]

Entity Tags: Government Accountability Office, Eric Cantor, US Department of the Treasury, Alan Binder, Treasury Borrowing Advisory Committee, Stanley Druckenmiller, US Congress, Brian Beutler, JP Morgan Chase, Jamie Dimon, Paul Ryan, Pat Toomey, Joe Weisenthal, Obama administration

Timeline Tags: Global Economic Crises

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