Kudlow on Morning Joe Blaming Crisis on Loans to Poor People
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Right,those pesky - limo riding - black welfare queens did it! ho,ho.
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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.
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He's right
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@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
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@chillercm Not the bankers, the freddi and fannie? That's a distinction without a difference.
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@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
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@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
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@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???
No fed cheap money, no severe bubbles. Simple as that. CRA exacerbated it, but wasn't the prime cause.
labulldog5 2 years ago 8
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.....
rangeyer 3 years ago 2