Becky Quick, in studio: …. Rick have you been listening (to the previous conversation)?
Rick Santelli, on trading floor: Listening to it? I’ve been just glued to it because Mr. Ross has nailed it. You know, the government is promoting bad behavior, because we certainly don’t want to put stimulus forth, and give people a whopping eight or ten dollars in their check, and think that they ought to save it.
And in terms of modifications, I’ll tell you what, I have an idea. You know the new administration’s big on computers and technology. How about this, (Mr.) President and new administration — Why don’t you put up a web site to have people vote on the Internet as a referendum to see if we really want to subsidize the losers’ mortgages, or would we like to, at least, buy cars and buy houses in foreclosure and give them to people who might have a chance to actually prosper down the road, and reward people that could carry the water, instead of drink(ing) the water.
Trader sitting near by: What a novel idea! What? Who thought of that!
(traders in the pit start clapping and cheering)
Joe Kernen, in studio: Rick, they’re like putty in your hands. Did you hear —
Santelli: No they’re not, Joe. They’re not like putty in our hands! This is America! (turns around to address pit traders) How many of you people want to pay for your neighbors’ mortgage that has an extra bathroom and can’t pay their bills? Raise their hand. (traders boo; Santelli turns around to face CNBC camera) President Obama, are you listening?
Trader (sitting nearby, goes over to Santelli’s mike): How about we all stop paying our mortgage? It’s a moral hazard.
Kernen: It’s like mob rule here, I’m getting scared. I’m glad —
Santelli: Don’t get scared, Joe. They’re already scaring you. Y’know, Cuba used to have mansions and a relatively decent economy. They moved from the individual to the collective. Now they’re driving ’54 Chevys, maybe the last great car to come out of Detroit.
Kernen: They’re driving ‘em on water too, which is a little strange to watch, at times.
Santelli: There you go.
Kernen: Hey Rick, how about the notion that Wilbur pointed out, you can go down to 2% on the mortgage …..
Santelli: You can go down to minus two percent, they can’t afford the house!
Kernen: ….. and still have 40% not be able to do it, so why are we trying to keep them in the house?
Santelli: I know Mr. Summers is a great economist, but boy I’d love the answer to that one.
Quick: Wow. You get people fired up.
Santelli: We’re thinking of having a Chicago Tea Party in July. All you capitalists that want to show up to Lake Michigan, I’m going to start organizing.