Obama's housing plan - socializing losses?

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In his report on CNBC, Santelli said responsible homeowners would end up subsidizing other people's bad behavior.

From the floor of the Chicago Board of Trade, he turned to traders and said: "How many of you people want to pay for your neighbor's mortgage that has an extra bathroom and can't pay their bills?" The traders booed that notion, and Santelli said: "President Obama, are you listening?"

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below my take on Rick Santelli's rant..

....it is very onerous and punishing to expect decent responsible hardworking americans setting out a new home and family completely within their means in 2006 or 2007 (say monthly repayment below 31% of household income)...

home prices may have fallen 30% to 50% because an irresponsible neighbour defaulted and his property foreclosed at fire sale price and even hardworking folks perfectly able to pay the mortgage may default (rational default)...

who is to blame?..cnbc anchors can repeat lopsided sensationalized comments about socializing losses and privatizing gains when the housing plan is to help 7million of their responsible fellow citizens caught in this global collapse and yet they are quite happy to attack Obama when he criticized the $18billion Wall Street bonuses as the "height of irresponsibility" and "guys please show some restraints"...so some segment of the press are quite happy with privatizing gains and socializing losses when the $18b bonuses go to the powerful Wall Street boys that caused or allowed the collapse under their watch (their greed causing miseries to hundreds of millions around the world) but not so happy when it goes to 7million of their fellow americans...I guess that is the "height of irresponsible reporting"...

still Obama administration has lost the initial spin and in a free debate it is necessary to hear all sides...so it is important to address the real concern of the american people about not subsidizing the unworthy (Wall Street fat cats or irresponsible Main Street next door neighbour..and don't worry about restricting bonuses - there are lots of perfectly decent hardworking Wall Street folks waiting to contribute once the fat cat culture is gone..)...but ignore the rants and not add any credit to it...