Kudlow on Morning Joe Blaming Crisis on Loans to Poor People

[ossiorn]

Don't let them fool you into believing the myth that these experts who turned these toxic mortgage loans into investment paper didn't know what they were doing and that they didn't

forsee the consequences of doing so.

[Vertigo2903]

He's right

[tbwil11]

@deficithawker How convenient of you to forget that our Prez Barry O actually worked for the firm Miner, Barnhill, and Galland who SUED BANKS FOR NOT MAKING ENOUGH SUBPRIME LOANS...as a matter of fact, in 1994 ol Barry himself represented a guy in a case against Citibank.

[MotesTV]

Actually, I mean no regulation of financial markets, especially money supply. Regulation is needed in industries that would truly fail without it, like utilities and transportation. But, money supply should be a based on production of core things like food and energy, not manipulated based on demand.

[MotesTV]

The rich bankers made money from losing money to the poor people, but the foriegn people that bought the derivatives, like I think Signapore 'wealth fund' is mentioned here, but also Iceland, England, the Chinese and Japanese and pretty much everyone that was buying our worthless junk because the bankers lied through their teeth about its value, they lost big time. And we didn't think that would get back around to effecting us, but, of course, it did, because.....

[chillercm]

@MotesTV well bankers didnt lie through their teeth about the value, rather the freddi and fannie whatever did. and the rating agencies were provided with massive incentives by the government and banks to give subprime loans faaaar higher ratings than they deserved

[MotesTV]

@chillercm Not the bankers, the freddi and fannie? That's a distinction without a difference.

[chillercm]

@MotesTV well it just pisses me off the rating agencies dare call themselves that after rating subprime mortgages as high as any other mortgages. it was their ratings that were giving the banks incentives to take these short term risks without realizing the consqeunces. natrually they had incentives from the bankers to give as many high ratings as possible, but they were really the ones who werent doing their job

[MotesTV]

.....instead of anyone getting stuck with the losses we just monetize, and QE'd the whole thing, in the US and worldwide, now we have A LOT more money in existence than 5 years ago. We are in for price inflation like the world has never seen. We need a sound currency, whether it be gold or joules. I don't believe in regulation because the regulators have too much to gain.

[loonmaniac]

More like rampant deregulation of the industry, like everybody's hero fucking Reagan did.

[rizdraver]

The only people that believe 'subprime' and 'poor people' caused this mess are the Joe Americans who try to piece together their worldview from 10 sec sound-bytes and snippets from 60 minutes. If one would spend any type of reasonable time investing into reading about the shadow banking industry, America's banking corporatocracy, CDS, CRE, etc. the mess we find ourselves in would be clear that it's been wrecklessness and greed spewing from the top down and not the bottom up. Kudlow is an idiot.

[chillercm]

@rizdraver you really think leading economists are joe americans. just because you know more about conspiracy theory rather than the true banking industry doesnt give you the right to judge whether or not subprime mortgages caused the crisis. take it from someone who actually has a clue, lending to people who cant pay off their debts creates problems

[spicerer]

Heard Kudlow often and can conclude that while he has certain points, he exhibits tendencies of neo-con fiscal ideas. He has been wrong on almost all economic and political predictions, war mongering etc. He keeps peddling the zero tax, 'growth will solve deficits', worship economic boom at all cost, hogwash.

[Moionfire]

When in doubt- blame the poor- especially the black poor

[ossiorn]

@Moionfire

Right,those pesky - limo riding - black welfare queens did it! ho,ho.

[gcxer444]

Jeez, I'd love to slap that condescending host. What a dick!!!

[Urbania05]

home loans to those who cant afford them is crimminal. i do blame this crisis on those people.. and those who allowed them to do this. greed on the consumer's part, on congress' part, and the banks did this. face it libs.. you fucked us up.

[tubo222555]

That male host is an idiot. Kudlow never said that low income people were to blame. He never even alluded to that. He was clearly putting blame on Congress. That guy needs to listen better.

[PissedFechtmeister]

@tubo222555 Joe is an idiot.

[auhin]

Kudlow confounds these dudes with basic logic.

[augenmaugen]

... But I blame spastic, hyperactive doomsayers like Kudlow for at least exacerbating the crisis. Panic feeds recessions, people need to stop listening to this rot and keep doing their best, being honest, responsible and chasing their fiscal goals and everything will work out.

[Duds47]

So the executive branch now sets short term lending rates huh? good to know

[changwute]

The banking mess was caused bt the BUSH ADMINSTRATION which lowered interest rates during a bull market in real estate which sent the market into over drive just like the stock market of the 1920's before the depression.Pure and simple real estate prices were up 200 to 300 hundred precent and they lowered interest rates and every bank had to jump on board . they had no choice or catch hell for low profit from investors .

[jjyy1980]

I can not believe how many idiots who does know economics are spew shit here. LOL

[70road]

It is hard to take you seriously when you can't even use correct grammar.

[JackBlair2]

Kudlow did NOT blame "low income people." He blamed giving substandard loans.

[MAGNETGRUNT]

Silly silly boys in there. The subprime loan was the primary engineering component, the main bait, used to bring about the crash. If anybody thinks that the Dollar is coming back they will find themselves surely mistaken. It will be worse than after the Civil War. Better deal in some other currency before too long. I'll be buying greenbacks by the truckload so can keep my fire going next winter.

[bigdog1271]

Why does Kudlow sound like Paul Lind? Do you think he slobs the knob?

[kyleAkuhn]

Kudlow is right i cant belive joe would argue with him.

[Annihilate3275]

Joe's a jackass.

[MournelitheCalix]

Joe was right here completely. Kudlow doesn't know how many of these bad loans are due to the Community and Reinvestment Act. He is very quick to blame this piece of legislation but he has no facts and can't answer a simple question of extent. I think Joe did a great job here and I normally can't stand the guy. Kudos to Scarborough

[Annihilate3275]

Kudlow's main point is that the subprime mortgage was a huge contributor to the housing fallout. In that regard, he was correct. Joe tries to mischaracterize what Kudlow says as "it's all poor people's fault." If you wish to blame someone making a point with no facts, Joe is clearly more at fault than Kudlow in this context.

[MournelitheCalix]

No I am sorry it actually is not a "Huge contributor." This is simply wrong. Do you even know what percentage of the loans that were defaulted on were loans issued under the Community and Reinvestment Act? I ask because I hear a lot of people say it was a huge factor and very few of those people have actually done the research and educated themselves.  Please check, you will be surprised. Understand I am not stating CRA is a good policy but to blame it for the subprime mess is misguided.

[Annihilate3275]

You disagree with me by stating I need to know what "percentage" of the loans were defaulted on under the CRA? My question for you is this: do you know this percentage?

Understand that the CRA is a significant PART of the housing mess. There are other factors. Simple logic tells you that it's an erroneous policy, which we are all feeling to this day.

[MournelitheCalix]

Actually I asked if you knew what percentage of the defaulted loans were CRA loans. I do know the percentage as reported by the NYT, Forbes,and the congressional record. Do you know, yes or no?

[Guest4000]

How about this:

Less than 10% of the high coast loans that were issued (which caused the collapse) were issued by CRA regulated banks. On top of that, even the subprime loans that were made by CRA regulated banks, had, on average, lower interest rates than non-CRA regulated banks. Furthermore, CRA-regulated banks were half as likely to resell (securitize) such loans (another contributor to the crisis).

[jjrglobal]

@MournelitheCalix

Kudlow is making the point of moral hazard that was caused by government GSE's and the CRA

[labulldog5]

No fed cheap money, no severe bubbles. Simple as that. CRA exacerbated it, but wasn't the prime cause.

[hmanxy]

So rather than dealing with Kudlow's comments rationally, Joe just compares them to the analogy of blaming poor people for the Kennedy assassination. That is some grand logic buddy. In other words, its all a conspiracy against poor people. What a tool!

[Zoolert]

JOE IS A FUCKIN DUMBASS LIBERAL

[hbjon]

She tried to hug and kiss that parasite. The tax payer has picked up the bill on all these bad decisions. The people that made out like bandits were the special interest groups, bankers, brokers, and realtors. These parasites work overtime to confuse the average Joe. May their souls burn in hell.

[ashford4411]

40% of all single family home financing from 05 forward were investor/ 2nd homes. Majority of subprime financing was provided by non banks, such as New Century/Thornburg. 30% of subprime loans are delinquent;25% of Alt-A & 5% of fannie freddie. Phil Gramm/Gingrich MAJOR CAUSE OF MELTDOWN

[braveheart85]

kudlow is the man...the guy in the blew your a fucken moron...FUCK YOU!

[Honkyrappa]

Kudlow is right, but of course he ignores the fact that without the FED none of this would have happened, CRA and all.

[grannyBangproduction]

typical kudlow they skiped through half of a comercial also why

[moderate1992]

once again, kudlow shows he's nothing but conneticut scum (yes, i know CT isn't spelled right). kudlow forgets to mention that the current credit crisis isn't caused because banks were forced to give out loans to poor ppl (they weren't). its beause banks than took these bad loans and bundled them up and sold them to each other, which noone forced them to do. fucking dumbass

[111harley111]

Kudlow is a tool. Wall Street took the subprime loan and leveraged them up 40-50 times with derivatives.

[Questfortruth86]

Yes because the government had their hands in the banks pockets; if you really wanna punish those greedy banks and evil hedge funds then LET THEM FAIL, stop subsidizing them!

[tokenliberal11]

Yeah... just don't tell Great Britain.

[tokenliberal11]

The man deals in absolute terms- you're either a free market capitalist or a socialist tax-and-spender. There's a middle ground. Where are the proponents of a mixed economy, with some room for entrepreneurialism and some room for government regulation?

[tokenliberal11]

believer in free market capitalism- most likely agree with Adam Smith's "invisible hands of the market place" assessment. But hasn't that been exposed as fundamentally untrue? Let's look at the "Gilded Age" of American capitalism (1870-1900), when Vanderbilt began buying up Erie stock, Gould used convertible bonds to create stock that didn't exist. Erie stock expanded, not because of external forces of supply and demand, but because Gould dictated it.

[tokenliberal11]

Here's the bone I pick with men and women like Larry Kudlow:

"Free market capitalism is the best path to prosperity." (The "Kudlow Creed")

Well, sure. I would agree with that statement, to a certain extent. It certainly leads to prosperity for the top 5% (or, for purposes of clarification, should we call them "the investor class"?) At the same time, we've seen a distribution of wealth that has led to deteriorating living standards for middle and working class families.

Mr. Kudlow- and any

[grannyBangproduction]

DRILL DRILL DRILL another quote from kudlow lol i remember but, I mean it helps out the poor on the other end so now if we lets say had the interest rates on federal reserve bills be determined by a free market. That way the investors do not have to deal with morgatges, and that means we dont have a difficult system and people are not giving out morgatges to poor people

[js1112111]

kudlow is the dumbest fuck out there.he has no clue to what is going on in the markets. his goldie loxx economy has crashed and he still thinks it is great. he is right here.clinton passed a law to loan poor money in 98 and it started this

[rangeyer]

Overall I think Larry is a stupid fuck but he is actually making a good point here......I think the people on morning joe are twisting his words around.....

[kyleAkuhn]

i agree with Larry 100%

[specultr]

Obviously Larry hasn't stopped using the blow. No wonder he never finished his degree.

[PHSbigcat76]

He isn't blaming poor people, he is blaming our congress for passing a piece of legislation that made banks make bad loans. It isn't the poor people's fault, because they were led to believe they could pay these mortgages.

[pebud2002]

If poor people were so smart that they could cause banks, real estate brokers, and wall street rich and at the same time lose their houses - then why are they poor?

[danger0usknowledge]

This sad little man Kudlow was actually

a flack for ENRON in 2001. He tries to

sling right wing propaganda about the Community Reinvestment Act. The worst subprime offenders, independent mortgage companies, were never subject to the CRA

or even federal regulation. This liar

for hire recently claimed he called the recession in Nov 2007. In fact, him &

Don Luskin would say that anyone who mentioned the "R" word were automatically contrary indicators & stocks were cheap-

4000 Dow points ago.

[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.

[Paetaor]

Everyone had a hand in it. Government, People, Banks, Rating Agencies, Brokers.

[willia3r]

-FIN-

[willia3r]

God bless the 44th President of the United States of America, Barack Hussein Obama!

[Jerrybowyer]

Ill tell you who the real minority is in America today-Anglo-saxan judaeo christian males who have a college degree and work for a living. The banks gave loans to idiots, negroes, latinos, and trailer trash who got the loans due to liberal guilt in congress who wanted to give easy credit and easy loans so they could drive cadillacs and smoke crack in a house they couldnt afford. People who dont pay their loans back should be arrested and put ino labor camps. The poor are to blame period!

[specultr]

You should get your own show on CNBC or Fox.

[flyinggeng]

Nothing in the CRA forces banks to do so, but the implementation of the CRA under the Clinton administration gave more power to Community Groups who could complain to the Federal Government and damage the operations of banks.

And Kudlow isn't blaming poor people. He has to be more clear that he's targeting the CRA, the community groups, and the politicians. "Blame poor people" is such a straw man.

[willia3r]

Yes, but a very effective straw man. The easiest way to gain power and keep it is to keep the ignorant masses in constant fear of the "unknown", the "other"...

[ChazAshim]

Keeping the ignorant masses fearful of the other is what Republican fear-mongers have been doing for decades. Fearful of the "terrorist" and the "liberal". Crafting bogeymen is the special purview of thousands of Republican "strategists". The American people can't stand it any longer. They will not be cowed by illusory fears into letting the elites pocket millions in earnings. No MORE.

[willia3r]

I wouldn't call fear-mongering a Republican invention... Remember the far-right extremists in the Southern wing of the Democratic party from the Civil War Reconstruction period up to the 1960's had done a lot to damage the relationships between the American people for personal gain and power, be they black or white, Jew or Gentile.

The legacy of that "divide and conquer" strategy is still felt even today. That's why the Global Elites always seem to have the upper hand. Very sad indeed...

[Windsor2k]

What a joke.. MSNBC is so F'n liberal

[ragudude]

whoa whoa whoa...everyone chill out... the man said "low income loans" and this is a problem caused by congress... not " minorities caused this." I don't notice any racial undertones there... White people can be poor too.

[willia3r]

You may be right. This may be just another case of trying to find a boogieman where there is none. Still, the way the mainstream media often cast these stories, you'd often think that the only ones on the government dole are minorities, hence the fear!

[jmu170]

There's no doubt that the goverment caused this mess, so now the government needs to fix it. The problem is that they should have stayed out of business and banking in the first place and this would have never happened. Having said that, there's also no doubt that lots of people jumped on the real estate bandwagon. Who want's to miss the gravy train? It's been a long while since I've seen a real leader in gov or industry. Just lots of people reacting and cashing out when thay can. SAD...

[Idtelos]

rich neocon GOP bastard "let's blame the minority poor for the problems we caused!" for the 10.2 trillion debt that Bush has doubled during his administration... surreee.. Reaganomics "works" Someone ought to shoot this bastard!

[willia3r]

This is a game that is rigged by corporatists masquerading as supporters of "free market" and "limited government." Hypocrisy!

This Bailout is nothing more than the socializing of cpaitalism! I dare anyone of y'all to prove to me otherwise! No I double-dare you! Where are the original conservatives? Where is Pat Buchanan when you need him?

[BAhern63]

you should "triple dog dare them"!!! lol

[willia3r]

Shouldn't Wall Steet be allowed to fail? Isn't the basic tenet of Laissez-faire be that the markets decide what companies deserve to survive and what companies deserve to die an honorable death?

All that is going on here is just another example of your everyday "partisan politics" theatre. How did the term Republican ever come to be synonymous with small governmnet is a mystery to me.

One thing is for certain. We americans are being taken for a ride, and the end will not be pretty!

[willia3r]

Here's my question: What is Kudlow even complaining about? What does it matter to him if it's as he says that the "poor" are to blame for sub-Prime Mortgage crisis?

If he is truly a "Laissez-faire" type of person then the true target of his ire should be George W. Bush for trying to inject an expansive government bailout into the markets.

But it isn't about that, is it? The Capitalists are afraid that their system will be exposed for the fraud that it is and their power taken away.

[willia3r]

I can already see the "Joe Six-Packs" of the youtube world now posting their fatwas and edicts on how "minorities" and the "poor" are to blame for their miseries.

Let's just ignore the the Banking industry and their unwilingness to educate people and tutor them on whether is fiscally responsible to take out these crazy loans. Then repackaging the debts and selling them and re-selling them until you don't even know where the debt had originated.

Gotta love that "Joe Six-Pack." Moron...

[willia3r]

Okay, I'll bite. Maybe it is a lack of personal responsibility on the part of many "Low Income" people that is PARTLY to blame for the current crisis. But can we at least agree that access to information to to make good fiscal decisions are not equalize?

Can we at least agree that maybe there should be an across the board standardize education at the elementary or high school level that encourages classes in money management? Someone answer that for me!

[NuBN247]

That is tantamount to saying if I shot you then you are 'partly responsible' for being in the path of my bullet. Nothing, I repeat, NOTHING in the Community Reinvestment Act mandated banks to give loans to unqualified persons. That was an act of greed on the part of banks and realtors who knew they could profit from making the loan and then again when selling it to another bank or mortgage company. Greed caused this crisis, not loans to low income people. Amazing how the rich are never at fault.

[willia3r]

Woooooow... So this is the Conservative's new blame game, uh? First It's Ronald Reagan's story of the welfare queen, then it's George Bush and his "Willie Horton" ad, then we take a walk around the block to Senator Jesse Helms'(God rest his soul) "Minority Quota Hands" ad... And we are now back to the tried and timeless tactic of blaming the "poor" and minorities for the SubPrime Loan crisis.

This is yellow/tabloid journalism at its worse. Very irresponsible and divisive, but typical.

[Pyroman2525]

Sub-prime was only the trigger to cause explosion of the fraudulent derivative products, which Wall Street peddled around the world, thereby contaminating ever increasing numbers of financial instruments.

Wall Street Trader and Banker's greed caused all this, and Bush's answer (and McCain) is to give money to the people who caused this in the first place!

Only in the USA. Your greed and imperial ambitions are destroying the world.

[therealcaptobvious]

this guy is such a LIAR. He's counting on people to not have any fundamental understanding of how economics works. Unfortunately, he's being proven right. A fraction of the consensus with modest income can't afford to speculate. Get a clue racists.

[therealcaptobvious]

The CRA blame is irrelevant in the mortgage crisis. Whites got 72.5 percent of subprime mortgages, Blacks got 16.2 percent of subprimes, while the Hispanics got only 6.2 percent, less than their share of the population. According to Compliance Technologies, a provider of information to banks and government agencies. CRA blame is racist scapegoating so the guilty can avoid responsibility.

[plpfctn2007]

CRA does not apply to institutions making the vast majority of troubled loans underlying the crisis. It applies only to depository institutions, such as banks and savings and loan associations. Experts have estimated that 80 percent of high-priced subprime loans were offered by financial institutions that are not subject to the CRA.

[mintbuzzLB]

You are wrong. The vast majority of subprime loans were offered by banks coerced by the CRA. The non-CRA regulated institutions that own a large share of the subprime mortgages bought them from CRA regulated banks, because there is no regulation preventing that.  Please get your facts straight next time.

[nine9s]

Kudlow was the only person there offering facts. Everyone else was talking "greed," "materialism," "rich people" and "don't you dare blame poor people for anything they do."

[kake1776]

Loans were being made too easily. "Rich" people should not get a no-doc loan.

I didn't hear Kudlow say that poor people caused this.

I think Kudlow is on the mark.

[chillercm]

@kake1776 yeah and for some reason the anchors think that loans to rich people caused the problem, rather than loans to people who couldnt afford to pay them off. loans to people who shouldnt be loaning money for a house which takes a lifetime to pay off. like Kudlow said people who cant afford a house should rent one. Most people in Germany rent because most people are sensible enough not to put themselves into debt for the rest of their lives... and whose economy is booming now???

[kake1776]

I love you Kudlow. Knock some sense into that bozo.

McCain Palin 08

[hurricanejohnson]

The comments are mind-blowing. Yes, it is the "poor" people. They bought houses they couldn't afford. The banks were "encouraged" (or forced) to lend them the money via the CRA. When their ARM adjusted, they couldn't pay. Then because the bubble burst, the house couldn't cover the mortgage (no down payment). "Rich" people have money to cover their loans. So, "rich" people weren't defaulting on their loans. Isn't that the definition of rich and poor?

[t0nt01982]

class envy is pathetic and immature.

[Bcapitalist]

FINALLY!!!!! someone hits the nail on the head and says this on Nat'l TV. At the root of many problems you will find government intervention is the culprit. They create the problem and throw money at it when they come to the rescue.

[pwlaslo]

And this from Barney Frank in 2003 in response to John Snow's call for a major overhaul and oversight of Fannie and Freddie:

Frank: "These two entities—Fannie Mae and Freddie Mac—are not facing any kind of financial crisis," said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."

[pwlaslo]

Google - "The Trillion-Dollar Bank Shakedown That Bodes Ill for Cities" written in 2000 by Howard Husock for the City Journal. There isn't a more prescient or cogent article about today's crisis than this article.

And "blaming this on poor people" point is one the dumbest, most demagogic arguments in the history of debate.

[Sinistertino]

I sort of agree ... makes some valid points good clip

[bluemonday2020]

I guees this idiot does'nt remember , when mortgage companies were stuffing your your mail box with teaser rates so they can get you in there and than F**K the hell out of you.

[hollyhoodjoe123]

The following are some facts that debunks Kudlow's lies:

*In late 2004, Bush severely weaken the CRA

*Roughly, One in four sub-prime loans were made by the institutions fully governed by CRA.

*Half of sub-prime loans came from those mortgage companies beyond the reach of CRA

*further 25 to 30 percent came from bank subsidiaries and affiliates

*The CRA went a quater of a century without any problems until recently.

(continue)

[hollyhoodjoe123]

*Independent mortgage companies, which are not covered by CRA, made high-priced loans at more than twice the rate of the banks and thrifts.

So, in conclusion, Kudlow is a fucking liar. This is a typical talking point for Repukes and free-market assholes. They lower regulation; then when it fails, they claim we need even less regulation.

Personal responsibility isn't a one-way street! Wall Street the main culprit here! Not the government, not the CRA, and not poor people!

[5145robkolker]

Can someone calmly just layout what was on offer to low income earners from lenders - where was the greed factor? Were people borrowing over their heads or institutions lending out too much and what was their incentive for doing so?

[exile100]

That lady is so annoying. Kicking him off the show was uncalled for. Disrespectful.

[dbmcvey]

Wait a minute--he's blaming "liberals" for this? Weren't the Republicans in charge most of this time? He's rewriting history.

[evek2345]

he explictly said both are to blame idiot!

[dbmcvey]

The REPUBLICANS were in power LIBERALS have never and still aren't in power you stupid dick.

[DarcPrynce]

Liberal Democrats INVENTED the Community Reinvestment Act that forced banks to give home loans to people who didn't even have jobs! Furthermore, Fannie Mae was run by former members of the Clinton administration, who made tens of millions of dollars manipulating the books to show that everything was working fine when in reality the whole house of cards was ready to collapse. John McCain tried to stop this insanity a few years ago but his bill was blocked by Democrats in Congress.

[dbmcvey]

You have totally drunk the McCain Kool Aid. If CONSERVATIVE Repugs hadn't deregulated the market no bank could have offered subprime rates. You've been brainwashed by Fox news.

[DarcPrynce]

Fannie and Freddie were half owned by the government! They weren't under-regulated, they were utterly controlled by corrupt leftist political hacks who cooked their books to enrich themselves to the tune of tens of millions of dollars. After the shit hit the fan, these crooks started blaming everyone who tried to stop them in the first place. Why do you think Congress hasn't called for investigations on this issue? Because the people in the majority now are the ones responsible for the collapse!

[dbmcvey]

They were following the same deregulated rules as everyone else--it's not just Fannie & Freddie that crashed. Have you been paying attention?

[johnedwards1968]

Kudlow is an idiot, and has been for years. You could make a fortune betting against his predictions.

[rangeyer]

I couldn't agree with you more. I was just getting ready to write something similar. I don't know if there is a bigger idiot out there.

[EQuinn643]

Very classy of MSNBC to drown Kudlow out with music. He never blamed anyone with low incomes, he said it was a creature of Congress, nice spin on words, Joe.

[RyMooval]

In an egalitarian society, the answer is to make housing more affordable, not condemn the agreements of just those left out in the cold by greed. It's about dignity for all Americans, right?

[Zakdayak]

Plus a lot of people got hit who didn't take out bad loans, because their banks invested in these junk bonds.

[Zakdayak]

These are not ordinary loans, a lot of them balloon as bad loans were made on purpose...there were people who were told no money down was viable...they ended up trying to pay 2,200 a month mortage with a 2,300 salary because they tried for the American dream, to own a home. Kudlow as usual worships the markets. he will always say less taxes and less rules for businbess, no matter what the malady.

[StephinRazin]

the truth hurts

[csantiago1079]

continued:

many are to blame. if you make 30-60k a year, you probably cant afford a half million dollar home. individuals are responsible for knowing their own budgets.

appraisers shouldnt have valued homes so high; banks shouldnt have made bad loans; congress shouldnt have encouraged it.

[csantiago1079]

you fucking idiots. he is not blaming "poor" people. he is blaming lenders for making loans for houses that some people couldnt afford. the lenders were coaxed into by congressional policies.

on an episode of 'flip this house' a 900sq ft house in a pretty bad neighborhood in L.A. was selling for 550 thousand!!! a homeless guy walked by and cursed the real estate team saying the home was not worth 500k. he was right.

[TrigsMomma]

Bullshit Larry

Listen Larry this was a concerted effort by the subprime lenders who started with fat cat GOPer and the biggest bush contributor Roland Arnall and all his friends who lobbied with Gramm to roll back all regs and get these "products" offered to as many people as possible and actually preyed on the poor, "no credit, low credit, bring it on, we'll help you"...greed pure and simple. Fed the "ownership society" of bush and everyone made out like bandits. GOP did this.

[NonPartisanTruth]

Whatever happened to personal responsibility people? Kudlow never balmed it on poor people but all you idiots are paying attention to what the idiot put as a headline and not listening to the clip. Never once does he blame poor people. That dick Scarborough wouldn't listen either. Poor people are partially to blame, along with anyone else we took out a motgage they couldn't afford because they didn't do their homework and realize they can't afford it. It's their responsibility!

[csantiago1079]

at least someone understands what responsibility is. right on, to you!

[hollyhoodjoe123]

Personal responsibility isn't a one-way that only applies to the Main Street. Many home buyers didn't know that a ballon mortgage would largely increase their payments as the years increased. Many home buyers signed subprime loans but qualified for normal one.

Banks were neglectful. They thought the housing bubble was never going to pop, and they got greedy. They assumed if one person couldn't pay, they could still sell the house at a higher price when it was foreclosed on.

[RyMooval]

At least Joe tried to stand up for poor people; their mortgages could and should have been made more secure. This talking old frog bastard fucker is a know-it-all who believes people should learn their place and rank and stop being so "uppity" as to want a house. Fuck him and the disgusting past that vomits him into being.

[csantiago1079]

their mortgages shouldve been made more secure?!

EXACTLY--the shouldve PAID them and sought ones they could actually AFFORD.

[planetsean]

Crudlow needs to be raped in an NYC alley before an accidental emergency room castration...

[wervasdeferens]

Here we go, it's all poor peoples fault(minorities).At least the rest of the panel set him straight. Sub-prime loans were going to all income levels. Peolple were buying McMansions who ordinarily wouldn't qualify.