Conservative Larry Kudlow Blames Financial Crisis On Poor

[dthomas9444]

This is really an unfair way to title this video. He is blaming the policies that allowed poor people to make bad loans, not the poor people themselves. Read up on what you post next time.

[TheBrewer1950]

larry kudlow is an idiot and if he isn't pulled from msnbc I will never turn this channel on again.

[LloydMadoff]

@ArtificialRed1083 Fuck off? You're the one responded to my comment. Then you threw a tantrum and called me a leftist, someone you don't even know. Your arrogance only betrays you as a partisan hack who's unable or willing to see a big picture.

[LloydMadoff]

@ArtificialRed1083 How did you get to use the computer without your parent's permission? Shame on you.

[LloydMadoff]

Oh... one more thing. Fuck Kudlow!

[Corbon440]

Seriously fuck the uploader for the title and description.

[esigus]

@Corbon440

I agree.

The title & description are completely false & misleading.

How many times did the guy have to say, "No, it isn't the poor people's fault. It's Congress' fault," for the uploader to understand that the guy wasn't blaming the poor, but was blaming Congress... rightfully, I might add.

I would much rather rent than own, personally. I do not understand why owning a house, with all the financial responsibilities attached to that, is the "American dream."

[YourFaceWillDie468]

Maybe I've got something wrong, but I'm thinking that blaming poverty on poor people is...discrepant to say the least.

[Tsaunders1307]

@YourFaceWillDie468

He is not blaming poor people he is blaming the banks that loaned to those poor people

[ThePelicans44]

This video's title sucks. Forcing banks to give loans to low income people "with no documentation" is not blaming poor people. It's not poor people who were forcing the banks.... it was certain rich people and Congress like Larry Kudlow says.

[LloydMadoff]

@ThePelicans44 You missed the point. By saying someone forced a criminal to commit a crime, you removed any responsibility this criminal may have regarding his crime. The question you have to ask is were the banks doing it for the profit?

[fastlanepublishing]

Larry, it was the politicians stuffing money from big lending institutions in their pockets and turning their head-the-other-way. Folks that couldn't finance a Hot Dog a the corner vender were getting these wild-ass home loans. Same in the Auto Trade. As an award winning new car dealer I was able to get loans for sub-prime consumers that had no business owning an automobile let alone a brand new one.

Here's the sad part...it's happening all over again!

[jmitterii2]

I don't like Kutthroat but I agree, one should have the means and a 10% down payment before buying a house. And they should have a savings to make repairs as well, like $5K. If you're currently broke, you rent at cheap to save. Once saved enough with the above goals, then buy a house. Homes are not stocks to be traded every other year.

[michiganmoon]

Kudlow was using facts and not blaming the poor, but the politicians and banks that gave out "creative" loans to people knowing that there was a high chance for foreclosure.

[twosugars619]

This was a fair comment to make, and it is just an addition to the argument against banks lending to those with lower incomes. Not like the Freudian slip he made the other day about the earthquake in japan and being 'grateful' that the human toll was worse than the economic toll'.

[withataman01]

Larry Kudlow your gayness has gone in your big head,  you don't know what you are talking about. People like you always blame the poor.

[rLOVEutionFor2012]

@withataman01 You didn't watch the video, did you?

[Frogboss6]

I couldn't have said it any better myself, Larry. There are some liberal idiots out there that believe somehow we can all be economically equal. The cold hard truth is that it's simply not possible in such a large country, just take a look at the former Soviet Union. SOCIALISM DOESNT WORK PEOPLE!!! how difficult is that to understand???!!

[balbahut0g]

aln greenspan ,larry summers, and rubin allowed this to happen they dont want no regulations..It was an planned demolition of our economy to squeeze the middle class.. and now they [billionaires] wants tax breaks?

[AtlasShruggery]

More Faux News Teabaggery from Neocon Chickenhawk Larry Kudlow. 

[jamwaters]

Did I hear him say 09/22/10 "SLEDGE to America"??? Anyone else, whose ears are perfectly clear, thank ya very much, hear Kudlow say,"SLEDGE to America"???

[newsfrombelow]

if you read serious historical journalism and straight up academic analysis of this financial crisis, and still conclude that the real source of the financial crisis was "the poor" and political pressure put on the "banks" to lend to the poor through "liar loans" and that all of this stems from the community reinvestment act....then, you are intellectually inept or dishonest. since kudlow is both. he is a right wing hack....read william black's the best way to rob a bank is to own one....

[JohnRhysMusician]

@newsfrombelow You cannot dismiss the mortgage and housing crisis as not a part of the financial crisis. It is all linked to derivatives and credit default swaps.

The reason the United States economy continues to lag is because of the underlying real estate equity crisis.

[snarliechell]

he has got a poin

[reedeckhout]

Who still hasn't been able to pay there TARP funds back? Ummm Fannie and Freddie. Goldman, J.P. Morgan, and the rest of the financials have payed theirs - with interest! So MSNBC and the left wing piece of shit anchors trying to look good by "backing the poor" can eat shit. Where does it say in the Constitution that an American HAS to own a home? The U.S. Gov sparked the "originate and sell" circus show that lead to defaults and delinquencies that eventually dried up credit. Frank n Dodd-crooks!

[reedeckhout]

@newsfrombelow: the point about the CRA is spot on. Barney Frank, Chris Dodd, and the GSE's (Fanny/Freddie) are crooks who receive absolutely zero blame. I don't think you understand the true correlation between subprime loans and mortgage bonds...Although there is an immense amount of blame to be put on credit rating agencies, i.e. Moody's and S&P, as well as those who pass along risk in the form of repackaging the original loan - The real problem stemmed back to CRA. Check wikipedia. Yeah Kud!

[newsfrombelow]

kudlow is what you call a hack....a right wing wall street hack....and not a very good one at that.

[PFB1994]

It wouldnt matter one bit if every low income person defaulted on their houses, the problem was Wall Street repackaged, bet upon, and hedged against houding prices. Wall Street is 100 percent the cause of the problems. Without all the side bets, housing prices would just fluctuate in a natural free market (like Larry likes). Again , Wall Street is 100 percent the cause of the problems.

[HorseSafety]

Perhaps you do not know but this guy was so addicted to Cocaine he had to go into rehab for a long time. I think he is back putting it up

his nose again.

[SuperDude2569]

Mr. Kudlow is not blaming anything on low-income individuals, nor is he saying that they don't have a right to a home. What he is trying to say is that people in all economic statuses need to learn to "live within their means" and take "personal responsibility". It should be the duty of a free society to provide shelter, food, and clothing to the underpriviledged, however, not to provide them with $200,000 houses and up!! That my friends, is the problem that we are up against.

[dac8555]

Banks were NOT FORCED to make loans. That is a lie. They were told they could not discriminate. Big difference. Banks can be as conservative or liberal in their lending policies as they like. MANY banks were just fine as they didn't make risky loans. Should they have loaned to poor people? no. The community reinvestmnt act has been around since the 70's for God sake. Kudlow is a smart guy that is just full of bullshit propaganda.

[Markofitch]

it is all because of the imigrants...

[vashcat]

Oh sure it's not the greedy bastards who fucked us all over!

[v1f9]

Could Larry Kudlow be a bigger douchebag?

[TimeWarp66]

That is not his argument.

The creator of this video is an idiot.

[stutwostep]

I'm a democrat and I agree with Larry. The fact that the defaults were and are so widespread proves his point. Standards for obtaining credit were lowered so much that it didn't matter if you didn't even know how to spell the word credit, you got it. That's why you save up and boost your credit score, so when the bills come in, you can deal with them. Still, it's sad how the banks targeted low income folks, like sharks around a seal.

[NYVoice]

You know what you have to like about Larry? He's genuine. He believes what he says, he says it with clarity with no personal axes to grind and for those who listen to WABC radio here in NY on Saturdays (from 10-1:00pm) will learn a broad range of financial news and facts from Larry and his guests. It's as good as any financial show out there. Tune in.

[AntiVenomFangX]

there is no one thing that is soley responsible responsible for the entire collapse.

but if you donT think subprime lending(low income lending) was one of the main factors in this recession.... it is irresponsible to vote.

[arsenprodigy]

Larry Kudlow is correct, I just would love to get at that man at :33, that piece of uneducated shit is the reason why we're here. That man is a lazy bitch. He doesnt deserve to be on TV

[DrTimWhatley]

Larry, the CRA was passed in 1977, not the 1990s. Get your facts straight, asshole.

[changwute]

now kudlow says they where passed in the mid 90's( 22) so get your fact 's straight or at least watch the video before you comment on what you don't know anything about but got off fox news, also what was passed in the 90's was because banks would still not give loans to blacks who more than qualified for housing loans. what's the CRA got to do with giving loan to anyone who asked even people who were buying two and three homes turn over have you noticed those show aren't on tv any more

[DrTimWhatley]

What is your problem? You're going to defend Larry Kudlow? Do you watch this guy on television? He's an abomination.

In this video he flat out said the CRA was passed in the 90s, which is wrong. So I don't know what you're talking about. He also supported the bailouts. I don't really understand why you're attacking me. Unless you're Kudlow himself, I don't see why you'd take exception to me calling him an asshole, because the fact is, he is.

[changwute]

Idon't think any of my post support KUDLOW opinions. The only thing he's said that'sany good is his investor class rantings which borders on scocialism. But that's only because , I feel that all of the money in IRA'S AND 401'K has been used to transfer factories,jobs and technologies overseas.

[changwute]

The reason for the finacial breakdown was the FACT that the BUSH administration lowered interest ,while real estate prices were on the rise( homes in my area went from 83k -95k to 200k to 250k) then the lowering of interest rate caused by bushes bulling of the fed. because he didn't want a recession during his presidency and THE REST IS HISTORY

[EasyEs]

I am sure his trying to reign in Fannie and Freddie only to be blocked by dems had no effect.

[changwute]

well he's a reporter not a every good economist and he only talks about one thing TAX CUTS . He was all for the lowering of interest rate which caused the bubble in the real estate market and forced companies to take on sub prime loans because they had to compete with the bankers who were already buying that junk.and his opinion on the bail changed right after the money was spent and thing looked to improve he was well i don't don't know their wasting all that money

[EasyEs]

Well that and the fact and a government sponsored enterprise being able to take on subprime loans by selling their bonds back to the government at a lower interest rate then the private sector , allowing private lenders to abrogate risk by shifting poorly performing loans to this government enterprise, not to mention the strong armed government enforcement of lending practices that saw people with poor credit, no income or down payment take away huge sums of money to buy homes with.

[changwute]

I think the fact that there was no body regulating the loan industry and the lowering of interest was the cause. Once the interest rates were lowered everybody had to jump on subprime loan due to fact of why 's that company making all that money your not.Also ,be careful about blaming goverment programs for doing or not doing things because congressmen will call behalf of businesses to force policies they don't want to do Ei nobody watching the loan industry I feel was a direct policy of the

[EasyEs]

What? No one was regulating the loan industry? You seriously think that..The sub prime sector of the economy was the most heavily regulated sector.

What regulations were removed specifically? To what effect..

The point is that the free market would have uncovered this ponzi scheme a long time ago if the government didn't provide avenues for companies to keep deferring their losses on the government sponsored enterprise.

Most regulations are in place to protect government friendly companies.

[changwute]

okat,if that 's what you think. Idon't know what ponzi has to do with sub prime loans. but madoff took captin's of industry so much for free markets . If you look historicaly the USA has suffered from depressions caused by capitalism gone wild to the point jp morgan had to bail out the government of the USA . You can't just look at recent history

[EasyEs]

Well how does a bubble form..think about asset values and finding people behind you to keep them pumped up.

There was no free market with respect to Maddoff. If there was it would not have happend. People assumed the SEC was watching out for them, so they got complacent.

And no depressions happen because during downturns in the business cycle, governments actions to fix it make things worse.

The 1920 decline was sharper then the 29 decline for example. No depression.

[changwute]

Bubbles are created by false expectation of profit not asset values . The 1920s depression was caused by deflation at the end of wwII , the depression of 1929 was caused, as was 2009 , over valuing of assets beyond their worth!!! In 1929 it was stock values supported by margin buying In 2009 it was real estate values supported sub prime loans . The book BLOOD IN THE STREETS is a very good read on bubbles and what today is know as contrarian investing and explains why SOROS made billions in 09

[EasyEs]

No if the asset vale was there the profits would be real and it wouldn't be a bubble then.

Indeed they were caused by different things. But the symptoms were the same. Too much miss allocated investment and resources and the economy needs to correct.

The market allows that correction to happen early on vs the government trying to keep the party going in so so many cases.

The difference in 1920 the government cut spending, raised interest rates and removed many regulations, = quick recovery

[changwute]

NO read the bookTHE VALUE OF ANYTHING IS WHAT SOMEONE ELSE IS WILLING TO PAY . So if you think you can buy something at inflated price and sell it higher price your okay BUT IN A BUBBLE THE PRICE IS FAR OVER IT RESONABLE VALUE AND EVENTUALLY THERE 'S PRICE PRICE CORRECTION basic economics !!!!!!!!!! this was going long before the USA existed . the government did not cut spending in1920 the started the PERSONAL INCOME TAX IN 1919

[EasyEs]

EXACTLY! We said the same thing in different ways. The reason the asset value wasn't there was because so much capital was miss allocated that the demand for the assets didn't exist. Ie pushing all the available capital into home creation leaving business having to compete with housing for limited capital. What entity did business have akin to Fannie and Freddie that took awful assets like mortgages no one could afford off their balance sheets?

I would love to know.

[EasyEs]

Read about what president Harding did in response to the 1920 contraction..

[changwute]

It is called AN IPO there were five or six a week maybe you remember a company call google they got millions as did visa and mastercard and that had nothing to do with subprime loans and most subprime loans were not backed by fannie and freddie your talking about what was trillions of dollars the government only backs certain percentage of loans . fannie and freddie do have budgets and loans they hold are not subprime subprimes were held by brokeage houses. and reit's

[EasyEs]

An IPO isn't a dump for bad assets..and certainly.. isn't the tax payer who finances it...Fannie and Freddie didn't hand out the loans but there were the largest purchaser of loans from the private lenders who knew they could use the special privilege that Fannie and Freedie had from the fed to dump bad assets. So it had the effect of not allowing private lending houses to eat their losses 100%.

[changwute]

Let understand this, by your thinking the real estate bubble was caused by the government . Than how do you explain the internet bubble how did the government do that or was the internet bubble another example that free markets aren't efficient which is why we have the SEC and the FED and fannie and freddie were created to help stabilize the real estate market and help the then growing middle class afford homeownership. YOU can't have both ways that it only works when you think it does

[EasyEs]

Well a bubbles can be caused for different reasons, so that isn't a point.

Second due to speculators and businesses being insulated from the free market bubbles are allowed to grow to the point where it caused major problems in the entire economy..

What burst the bubble.. hmm wasn't the fed raising interest rates six times.. nahhhh

[changwute]

well speculation is what free markets do. Alan greenspan admitted he was wrong and that free markets do need to be regulated So who's right  him or you

[EasyEs]

No one says that free markets don't need regulations. The free market needs to be regulated to ensure transparency and protection from fraud. He is right in that regard.

The problem is that liberals and big businesses see regulations as a means to give or get competitive advantage, hold down competition or as ways to use businesses as proxies for political agenda.

That is what is leading to the major problems.

[changwute]

what liberal's you talking about the tree huggins enviromentalist, or the anti corporate socialist.

[changwute]

Are you trying to say he cut military (navy)spending after wwI and what regulations did he cut YOU MEAN THE TRANSFER OF IMPORT EXPORT TAXES TO PERSONAL IMCOME TAX because before that the only money the federal government got was from import and export taxes and other business fees . and the so called depression of 1920 lasted 7 months Harding didn't get elected until 1921

[EasyEs]

Harding removed removed a great deal of interstate trade regulations, ended lots of cozy deals in the railway and marine transport industries. The fed did no move increase the money supply fight the contraction.

It wasn't a depression that is the point, it began in jan 1920 and ended quickly because the government did very little ..I am sorry but what big measures did Wilson enact during that time.. you know after his stroke in response to the downturn.

[changwute]

I believe you believe your right and your case is proven by the republican policies since 1970's and the twevle trillion dollar debt proves you and the conserative republicans are correct The growth in to the most powerful and riches nations in history from 1932 to 1970 wasa fluke and the expansion of the middle class  wasnot that important in it's creation

[EasyEs]

I am not republican I am Canadian.

Sure what was the beginning of the growth of the middle class. And the year with the greatest growth in GDP for the USA. 1946-47..Which direction was government spending during that period.

Also the USA had an industrial monopoly for nearly 15 years due to most industrial nations rebuilding out of rubble/ruining their nations through socialism. Ie the UK and Major south American nations were no longer competitive on the world market.

[changwute]

(CON .) BUSH whitehouse no regulation is good regulation . I lalso feel that certain industries need to be more competitive like sugar ,cable and others . Regulations when funded serve to protect the public (majority) form harm of a few such clean water act. clean air act , and in this case the banking industry from itself

[davidguywilson]

Larry kudlow had sexual relations with sarah palin

[GreatVideoFinder]

For a great video/channel on the economy, check this out:

"Truth, Democrats, Republicans, and Obama Change Question"

Just click on my channel and you're there!

[Alfrunk]

What a self important drunk

[JMcCaughey09]

i hope kudlow gets cancer

[Alfrunk]

Gotta love you caring, loving liberals. What a monster you are.

[JMcCaughey09]

youre a waste of life

[ericclaptonismygod31]

I am in 100% agreement with Larry Kudlow in this one.

[tpsu129]

Scarborough is now just a mouthpiece for PMSNBC.

[Finnbar01]

Poor people didn't cause the crisis. Bankers, brokers and politicians did. That's is more or less is what Kudlow is saying.

[Pirate1014]

These people are idiots, Kudlow is not blaming the poor people for the cause of the bubble he is blaming the banks and the loons in DC!

[LloydMadoff]

@Pirate1014 I disagree CRA is widely believed to be the cause of FC2008 by the Wall St, Ron Paulites, and Von Mises crowd. If sub-prime was the cause, Bernanke would have been correct when he said prior to the crisis that this is the case. But this isn't what happened. The entire global FC went down. The banks, along with everyone else were in it for the money because they thought the bubble will never pop.

[LloydMadoff]

@Pirate1014 Your argument amounts to someone saying a thief had to steal because the oppressive society forced him to do it. Come on, think for yourself for once. Put yourself in the shoes of Blankfeins or Paulsons of the world. What would you do when you see a great big pussy waiting to get fucked?

[politicalhack28]

Kudlow has to drill it in their head that he is NOT blaming it on poor people. But rather the reckless attitude among politicians (Republican and Democrat) that encourage and incentivized wrongly poor people to buy homes.

[wes4heels]

once again msnbc doesnt understand how detrimental government intervention in the marketplace is. they're company is going in the tank just like their favorite paper, the New York Times

[wes4heels]

kudlow for president

[marek4400]

Kudlow was wright

[tonyac42]

Loans made because of the Community Reinvestment Act had a higher repayment rate than mortgages of any other type.

[tbmagis]

WOW - hear me out on this one... I went into this video with the notion that I was going to hear some judgmental shit. After watching it, I'm PISSED at the media not even TRYING to comprehend his point. They just instantly take sides and accuse him of saying things. WHAT PISS-POOR JOURNALISM!

Am I wrong?

[pl33psadface]

You're right...not quite sure why they don't understand him.

[blugrastooth]

he wasn't blaming poor people.  he was blaming the BANKS for making bad loans. poor people deserve to buy a house as much as a rich person, provided they can afford it!! thats just common sense.

[grannyBangproduction]

he is not blaming the poor people the poor people are like children they will do anything the government tells them to do they will not understand these loans and not understand that they simply cant pay get an apartment and stop fucking complaining wait a year or 2 for that kid so u can get ur money together uhh get a used f150 than a new f150

[changwute]

so you don''t believe when people who wanted to buy home got a call from their bank' to come in and fill out loan papers and we'll give a loan to buy a house should have know that they couldn't afford the loan because . I had to argue with a loan officer that I didn't want loan. SO I know first hand that's what was happening at the time. and besides that the bank failure's were caused by no regulation in the derivative markets which wall street is fighting today. THe term bank is

[EasyEs]

Hmm I would be very careful in saying that no regulation in the derivatives market existed. The real problem was everything was on margin.. which is fine if someone is willing to give you a loan who isn't the federal reserve (i am aware of the nuance but to shorten I used this simplification)..

[changwute]

wrong wrong wrong so wrong their was a regulator who tried to get regulation on derivatives and the group of five ( see pbs special) fought to ban regulation and ran brosley I think that was her name out her government position and that show is where Greenspan said he was wrong about freemarkets and that they needed to be regulated also there was up to 580 trillion dollars a day being traded in the derivatives that is 200 times the 2010 bugdet of the USA government .

[EasyEs]

No it wasn't unregulated. It may have needed more but I can see infront of me now about 3 pages worth of regulations from the FASB

Yes and the total market is worth quadrillions world wide..

[changwute]

well there was a ton of flipping going on in a over heated markets and the banks and loan orginators where giving out loans like they're giving away halloween candy with loans lawyers couldn't understand and wall street was saying give us more and anybody that tried to step in and stop it got stepped on. You know I read a comment from a real estate person saying they're selling 500,00 to 600,000 homes to people with incomes of 40k so banks and wall street weren't the only ones to blame

[changwute]

(con) is miss leading there are investment banks goldman and lehman and depository banks bbt and m&t and with the law change at hte end of clinton administration they allowed depository bank to offer investment or brokerage services . I'am not quite sure but I think you have to have at least a 100k or more to bank at goldman's

[rodbuzz]

Kudlow is telling the truth. It might not sound "nice" to you. And yes, I have several clients who bought 500k and 600k homes who made about 40k per year. So yes, MOST of the problem had to do with that. Did the person who posted this get influenced by Joe's expression. Get a brain. Sorry it sound "mean." Go read the community reinvestment act and its subsequent changes under Clinton that did FORCE banks to make bad loans. Don't respond to me without proof that I'm wrong.

[jrebstock]

the CRA excuse is a MYTH....citibank and & otherbig banks got into subprime lending b/c they (foolishly) thought sub-prime loans would lead to profits.....only a very small percent of sub-prime loans were required to be made by banks....this crisis would have occured much sooner than Sept 2008....if the CRA of 1994 had been forcing banks to make all these high sub-prime loans.

[rgman268]

I am not quite sure that I agree. Only 20% of the bad subprime loans came from fully CRA regulated mortage lenders.

[BsAs0101]

Kudlow was rediculing the notion of a housing bubble back in 2004-2007 - he even had a segment for this in his program. This guy is an utter, complete and proven moron, why is he still on national television?

[rollotwomassey]

Good God- a member of the media/pundit class was caught ON NATIONAL TELEVISION telling the truth. This is hate speech.

[riddler03]

He's saying that the banks were forced to give loans to poor people. That's a big lie. Wachovia and Wamu had more than 60% of their portfolio in subprime and alt-a/option ARMs loans. Congress never mandated that. Banks went after everyone because they knew they could get rid of the loans through securitization in the open markets. They could pass the loss to someone else. Kudlow is a piece of garbage.

[jbfoxtail]

The title is a lie, kudlow was not blaming poor people, LISTEN to him!

[projectmatt83]

He couldn't be more right. Many people should not own a home.

[garyowen4ever]

hey yo....krudlow the honky will have 2 jobs at the BAMA house...........as a lawn jockey and michelle's french maid.

[logansGT]

I'm not a conservative, but I like Scarborough. He was way off, though, in this vid when he accused Kudlow of blaming the crisis on the poor.

Clean the wax out of your ears, Joe !

[Lucky7wins]

Your title is wrong, and the stupid white guy saying "you think poor people caused this" is wrong.

He is saying, the problem was caused by lenders lending to "poor people" who couldn't in a million years pay the loan off, much less the interest.

Get it right pal!!!

[MsticalPrincess]

Lucky..I agree. This tittle is so misleading and RUDE. It tries to imply conservatives are against poor people which we are not. How PATHETIC that someone has to use an UNREALISTIC title and try to PURPOSELY mislead people into thinking something that is NOT said. Typical. Only people that have no TRUE facts result to these SCUMMY tactics. This guy has lost all credibility...period.

[trader1963]

The point is that liberal compassion had nothing to do with subprime loans. Whether forced to by the government or not, banks liked them because they were very profitable. Then the question is: why did the rate of loan defaults suddenly go up above typical historical levels? I suggest that exporting jobs overseas has alot to do with it. Not only has this eliminated jobs but it has also put downward wage pressure on existing jobs. This is a factor the corporate media intentionally ignores.

[northstar825]

This guy is a POS!!!!

[bxlxix69]

this asshole is lieing to you in your face, Americans who live in the 50 states are NOT tax liable; the united states in federal law means only the district of columbia...

[day50912A]

He didn't blame the poor. He said politicians (Democrats and George Bush) pushed for government backed home loans to people who couldn't or wouldn't pay them off.

[thewah]

He blamed liberal for tying to help poor people, which is just moving the "blame the poor people" one step off.

I wonder if he would ever blame the guy who told people you could just watch TV and get rich? Heck, they used to have a show together.

[day50912A]

The 'liberal' gave 'preditory' loans.

[thewah]

It's spelled "predatory" and you also misspelled "Bush Administration."

[day50912A]

Thank you.

[schoolmaster1945]

Kudlow sucks...crackhead...

[rangeyer]

Kudlow is a stupid fuck.....funny to listen to though....

[SavaryGuy]

Not once did Larry blame this on the poor.

[thewah]

He is bullshiting. On the one hand he blames "liar loans". These were not given to the poor, generally, but to house speculators who figured out how to abuse a flaw in the system.

Then he says it is "the liberals" fault...which is an assumption he (and many other stupid people) automatically start with. It's not surprising it's the same place they always end up.

[day50912A]

Liberals can do great damage with their 'compassion'.

[thewah]

Not nearly as much as "compassionate conservatives" however.

But I don't want to get in a pissing match here, so have a nice day, por favor.

[MsticalPrincess]

thewah??? Oh really? And tell us please how much damage "compassionate conservatives" have done.

[thewah]

There is no need for me to repeat history. Just look at the U.S. in the 21st century. There's your answer.

[automatt12]

LARRY KUDLOW QUOTE TIME!!!

July 2006:

The bottom line here is that Bushs pro-growth tax cuts worked. After all the dust settled, the supply-side was right.

January 2007:

The budget deficit has plunged while the economy has soared. Think of it as the Bush Boom

January 2008:

I'm a guy who looks at the basic fundamentals of the economy. And I see good things happening

Larry Kudlow Fans exclusive: Historic Bridge for sale in Manhattan, 1 owner. Must sell now!

[specultr]

The poor are responsible for all of the derivatives (the side bets) worth trillions of dollars where we don't even know who owes whom the money? Kudlow is a disgusting figure. I'm glad that the people who listen to him and Cramer kept buying stock at the top of the cycle. They deserve to be humbled.

[BustMyCh0ps]

crchrdsn is at it again. Since you obviously voted for Bush Twice and are pro deregulation don't get offended if no one believes a word you say. Ok genius.

[crchrdsn]

He speaks the truth. Although I'm sure most of the poor that benefited from these Democrat handouts were too dumb to understand the adverse consequences that might follow. The Dems hurt the very people they were trying to help.

[automatt12]

80% of those mortgages were handled by private firms.

Most of these were predatory lenders, who used teaser rates and other tricks to get people to sign up for mortgages.

Bush aggressively stepped in and prevented a massive nationwide effort by elliot spitzer to go after these predatory lenders.

The three hardest hit counties in the US are 90% white.

[crchrdsn]

Yes, most of the mortgages were offered by private firms. Fannie Mae and Freddie Mac are GSEs that were created to INSURE subprime loans offered by private firms. Not necessarily to offer it themselves. Also, nobody is putting a gun to your head making you take out a "predatory" subprime loan. If you think your loan is predatory, why take it out in the first place? Read the fine print. If someone can't read the fine print, they have no business taking on a mortgage in the first place.

[crchrdsn]

Another thing, regardless of where you stand on this issue, there is a great article on this by the New York Times. Very prophetic if I might add. Google: "Fannie Mae Eases Credit To Aid Mortgage Lending" by the NYT published September 30, 1999.

[changwute]

well Bush lowered interest rates in a real estate market that had already increased houseing values by 100 to 200% which helped cause the real estate bubble . The move by fannie mae in 1999 started activity in the real estate market by 2001 we were in a bull market of real estate

[Idtelos]

wow, elitist neocon gop bastard using poor people as an escape goat..

[jncohen]

No, Larry. As usual, you show us how stupid you are. One: junk loans are the product of the Depository Institutions Deregulation and Monetary Control Act of 1980. It is a Reagan policy. Two, Lehman, Goldman, WaMu, etc. weren't making loans to poor people because they were forced to. Banks were making TONS of money with these loans, and that's why they did it. Go back to telling us that the "bottom is here", as you've done for months on end. Stupid dumbass.

[crchrdsn]

Of course the banks were making tons of money writing bad loans because these loans were insured by Fannie Mae and Freddie Mac. The U.S. govt. was directly subsidizing this bad debt. In a free market these banks on their own would NEVER have made these loans in the first place because they are a substantial credit risk. But when the govt. intervened and decided to subsidize bad debt.. well the rest is history.

[jncohen]

In fact, a good deal of these loans were "insured" by credit swaps.  Deregulated banks were selling insurance on these markets, but, because markets were deregulated, they never put aside the money to secure these insurances. That's a big part of the Lehman Bros. problem. You are drinking up too many Republican talking points. Republicans blame Franny and Freddie because it is an indirect way of blaming the poor and the govt, and not those who made the loans, made the profits, and got bailed

[Jerrybowyer]

Kudlow is 100% right that the poor caused this crisis. If you cannot afford your godamn loan, its too costly and you cannot afford to buy it. "If you have to ask how much it is, you cannot afford it!"-JPMorgan

[automatt12]

His words may make you feel good that "its the poors fault". But, is that really what happened?

[judoskeleton]

Larry is actually partially correct here. He is usually completely wrong. The legislation he refers to is a big part of our current financial mess. He is wrong to say it is the result of liberal guilt. It is more the result of corporate welfare and political interference in our markets.

[finylvinyl66]

Talk about elitist assholes. Kudlow is at the top of the list. How's Goldilocks doing these days, Larry?

[rw5791]

scarbourough fair,the mental midget,takes on erudite laurence kudlow.What a joke.But how hot is mika?She goes backdoor for sure.

[rangeyer]

Kudlow is a liar who has been wrong on everything for years. Don't listen to him he is just a shill for wall street.

[sbmcnamara]

he is right on the root causes.

The homes in florida or nevade could again become worth something in a picked up economy, but who is gonna ever want inner city properties in high crime areas with poor education? The property taxes woudl probably exceed rental income....it is dead in the water, worthless real estate....And the CRA, and ammendments made in the 90's to it, promoted banks with the backing of fannie and freddie to make such loans....also look up ACORN and Obama.....

[richburmei]

You people are idiots. He is say gov't is at fault. In 1995 congress mandated that loans had to be provided to inner city distressed rural communities. when banks were not loaning enough to specified neighborhoods; allowing groups to sue the banks that did not provide loans to those that couldn't pay.

[a1mint]

Where I am, they take your gross income times three, and that's what you can lend, and that's that.

First own something smaller, like a condo or townhome, build equity over 10 years or so, and *THEN* get your nicely sized detach home.

People have too much sense of entitlement.

[adp19406]

Larry Kudlow is an ex-cokehead hypocrite.

[GrandMoffTexan]

Larry is lying about

- when the CRA was passed (off by 20 years)

- what the CRA does

- what lending companies the CRA affects

What a bunch of crap. Larry's precious investor class screwed the pooch with their casino commerce, but now it's the little guy's fault. 

.

[kp13822]

The revisions made the to CRA in the mid-nineties resulted in more low income loans. The revisions allowed the securitization of CRA loans containing subprime mortgages. The CRA revisions were a contributing factor but not the only reason for the current problems.

[ivanjaykcmo]

Preying on people's good faith - is now an act of forced charity? You really need to get out more - Kudlow Kut the Krap!

[SURFThru]

Kudlow should be off of the air. He gives bad advice all the time. He told people to buy at the top last October and said high oil prices are bullish. Has the guy ever read one finanical report? Has he really any clue about econ 101?

He should be off of the air and take Cramer with him. CNBC is a waste of time for any real market insight.

[Zer0Tol3rance]

Blaming poor people for the economy. Now I've heard it all.

[revelwoodie]

This guy is not dumb. He's a liar covering the ass of the Republican party.

Here is the truth: Complex financial instruments, like mortgage backed securities (which would have been illegal before deregulation), created an environment in which banks make more money the more loans they write. The more loans you write, the more securities you can sell. Period.

It was their own greed that made them write these loans, not Democrats with "liberal guilt."

[pwlaslo]

The banks didn't want to write these loans, and they weren't doing so to such an extent before 1995 and certainly not before 1977. How does greed motivate someone to make a loan in which they will never see interest let alone the principal paid? And these banks are very sophisticated and know exactly who is likely to repay. That's what all the bellowing about "red lining" was all about once upon a time. Google, "The Trillion-Dollar Bank Shakedown", from 2000 and be enlightened.

[GrandMoffTexan]

Greed motivates them to bundle the loans and sell them to the next guy, charging a fee. So the hold of the mortgage didn't vet the borrower.  That's what broke the mortgage companies, and the CRA had no authority over mortgage companies.

.

[getmeinnow222]

This guy is full of shit. Can't believe they would even bother interviewing such a moron.

The problem with the housing market and economy has nothing to do with giving subprime loans to the poor. Its has everything to do with giving them to greedy investors who were in over their heads.

[ElanaUNITEHERE]

We should ask McCain if he agrees with this victim blaming. We should ask him that in Ohio.

[kp13822]

Why would you consider people who take on mortgages they can't afford "victims"?

[changwute]

well if your bank called you to come in and fill out a loan app. and then tells you we 'll give 300k loan why would you think you couldn't afford it because that what was going on . sadly the reale state agents just kept their mouth shut and took the commission

[EasyEs]

Why wouldn't I think I could afford it..well I would look at my financial situation and the terms of the loan.. You forget that much of the debt comes from people using their homes as a credit card. The only way they could monetize these gains was because the banks had so much cash from the fed.

[changwute]

reply about the tax system in canada please don't defend poor policies in the USA AND AND NOT TALK ABOUT CANADIAN POLICIES !!!!!!

[EasyEs]

I think you may have deleted the tax system question or I didn't see it..

In short though the Canadian tax system like the Americans varies from province to province. Currently I live in a bad one.. with high tax rates. Our government is bankrupt with out oil and gas royalties, and the private sector doesn't exist outside of the largest city..