Kudlow on Morning Joe Blaming Crisis on Loans to Poor People

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.

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

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

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

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.

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.

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.

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?

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).

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