I try to ignore the TP’ers as much as possible. I saw the ‘great rant’ by Santelli on CNBC (when i still watched that shit channel) which is supposedly one of the seminal events leading to the formation of an organized TP. His rant was all about the moral responsibility of people who had bought at the top of the market in housing and were now looking for help from the government - which basically meant giving money to people who made bad choices. You can see it here - Rick Santelli: Tea Party Rant 'Best 5 Minutes Of My Life' | HuffPost Latest News
I see the tea party as being all about government actions that amount to transfers of wealth to people who don’t deserve it - whether banks, borrowers, whomever.
Since the rant, it has however been co-opted in many ways by other groups who this as potential power base. But the initial motivation was the idea that people should accept the consequences of their actions and not get a govt handout every time they do something stupid.
The problem with that attitude, and you see it even in people like Santelli who really should know better, is that had the govt not bailed out Goldman, AIG and the rest, the credit crisis started by Lehman folding would have been much worse. It would have been the 1920’s all over again with rampant deflation, bank runs, etc, etc. If you know anything at all about monetary theory you can see that.
But the TP anger is misdirected. The govt, and in particular the Federal reserve under Bernanke, literally pulled our fat out of the fire. They are the heros. The people who are to blame are all of the banks, rating agencies, hedge funds, etc who were leveraged out the ying-yang. It was literally a house of cards. And, take note, it was all made possible by a decision by the Bush admin to reduce capital requirements for things like derivatives. So you could sell a credit default swap on Portugese govt paper that would obligate you to pay say $10M on default but only have a few hundred thousand in capital to back that obligation.
That’s what led to an explosion of the money supply and further fueled the frenzy in the housing market. The lower rates went, the higher house prices went since they canceled each other out resulting in the same monthly payment. So Greenspan has to take a big chunk of the blame too.
The point is that the current admin walked into the mother of all financial cluster fucks. And while they have made their own mistakes along the way, they have at least done some important things right. Otherwise, we wouldn’t even be looking at projected growth of GDP in the 2% range. We’d still be bouncing along the bottom of the great recession.