Barack Obama

Gibbs Takes on Santelli

Updated 4:54 p.m.

By Michael D. Shear

Anger among homeowners about President Obama's foreclosure bailout plan boiled up to the White House today as press secretary Robert Gibbs unleashed a barrage of criticism at a former trader whose rants against the plan this week have made him a cable and Internet phenomenon.

Rick Santelli, a CNBC reporter who exploded in a tirade this week from the Chicago Board of Trade, has accused the president of crafting a housing bailout that is unfair to the millions of people who bought a house responsibly and have been making their mortgage payments.

"Government is promoting bad behavior," Santelli said on his network (see video, above). "Do we really want to subsidize the losers' mortgages?"

He continued: "This is America! How many of you people want to pay for your neighbor's mortgage? . . . President Obama, are you listening?"

Later, in a video that has become a YouTube sensation, Santelli called for Obama to put his plan to an Internet referendum and called for a new Tea Party to protest the housing plan.

"President Obama! Are you listening?" Santelli demanded.

Apparently someone in the White House was. In response, Gibbs attacked Santelli by name repeatedly, accusing him of not having read the president's housing plan and mocking the former derivatives trader as not being an effective spokesman for the little guy.

"I'm not entirely sure where Mr. Santelli lives or in what house he lives," Gibbs told reporters, his voice dripping with derision. "Mr. Santelli has argued -- I think quite wrongly -- that this plan won't help everyone. This plan will help, by the money that's invested in Freddie and Fannie, will drive down mortgage rates for millions of Americans."

Later, Gibbs added: "Now, every day when I come out here, I spend a little time reading, studying on the issues, asking people who are smarter than I am questions about those issues. I would encourage him to read the president's plan and understand that it will help millions of people, many of whom he knows. I'd be more than happy to have him come here and read it. I'd be happy to buy him a cup of coffee, decaf."

The exchange underscores the potential for a new wave of class warfare as the president unveils economic plans that reward some people, often at the expense of others and without regard to who is most responsible for the economic downturn.

The stimulus plan that Obama pushed through Congress largely avoided that kind of fight. But the housing plan -- which targets up to 9 million homeowners for help -- has quickly become a focal point for homeowners who are paying their mortgages but still struggle economically.

Gibbs' response also indicates that the White House is particularly sensitive to the attack that they are unconcerned with the people who have been acting responsibly as the economy crashed. The president has repeatedly said he is looking for a new era of responsibility, a phrase that he used in his inaugural speech.

In his response, Gibbs insisted that the plan will not help people who acted irresponsibly.

"It won't help somebody trying to flip a house. It won't bail out an investor looking to make a quick buck," Gibbs said. "It won't help speculators that were betting on a risky market. And it is not going to help a lender who knowingly made a bad loan."

And he used unusually direct language in criticizing an individual from the briefing podium.

"I think we left a few months ago the -- the adage that, if it was good for a derivatives trader, that it was good for Main Street. I think the verdict is in on that," Gibbs said.

He ended by holding up the president's housing plan -- an indication that he had planned his response in advance, expecting a question about Santelli.

"Let me do this, too," Gibbs said. "This is a copy of the president's home affordability plan. It's available on the White House Web site, and I would encourage him, download it, hit print, and begin to read it."

Santelli, appearing on CNBC today quickly after Gibbs' comments, appeared to be enjoying the attention.

"This is exactly what we want. They are making things clear," Santelli -- who was hardly a household name 48 hours ago -- said. "If you listen to the clip yesterday, we never referred to any specifics. It was the notion of not going down the road subsidizing other people's

mortgages. I think its terrific that this has been opened up to national debate."

He added: "I think its wonderful that he invited me to the White House. I'm not really big on decaf though. I think I prefer tea."

Posted at 3:58 PM ET on Feb 20, 2009 | Category: Barack Obama

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