Larry Kudlow on Morning Joe
Now I have heard it all. It is the fault of poor people that we are in an economic crisis. Kudlow blames low income people that wanted to own a home. It is also the fault of the Community Reinvestment Act which made it possible for low income people to receive loans. This is just plain ridiculous. You cannot blame the economic crisis on poor people. I wasn’t aware that poor people with limited resources had the power to bankrupt Wall Street banks. Kudlow fails to acknowledge that there were larger factors at play. What about banks making loans with money that they didn’t have? What about greedy executives? What about speculators in the real estate market buying 2nd and 3rd homes? What about poor risk management? What about unsuitable mortgage products?
True, this is just ridiculous. The one who should be blamed is the one that gives the loan, and the one who supervise them (who gives loan).
@invest money
There is plenty of blame to go around.
Did Gm deserve the bailout? You Ask me I would say NO.. why? When Honda and Toyota were out inventing new cars, GM was busy boasting about its pride and Showing off its hungry hungry Daughter the Hummer
@Jennifer
LOL. GM did have a number of miscues.
Who wrote this? Kudlow is stating what every politician never will, because it’s just too non-PC to blame a poor person for anything. But there’s a dirty unspoken truth here. The most powerful individual, be it Bush to stop it, or Obama to fix it, have absolutely no power in comparison to the actions of tens of millions of lesser persons making the huge mistake of taking a mortgage that they can’t afford, and signing papers they don’t understand. It is the mass of them as a collective that is to blame. And those that encouraged them, and forced banks to do so. Kudlow is right. If they had just made the payments that they promised that they would, then most of the Wall Street schemes would have held up just fine. Not PC, but true.
Doug, I think that the blame is equally shared. Banks should not have made loans to borrowers that were not credit worthy just for a quick profit.
Kudlow never says poor people are to blame. Joe puts those words into Kudlow’s mouth. Kudlow says the government is to blame and he’s right. The laws he speaks of encouraged people to buy homes they couldn’t afford. Whether poor or middle class, people were sold homes they couldn’t afford. Banks made the loans to unqualified borrowers because the government backed up the prinicpal. Politicians cheered as voters saddled themselves with unsuportable levels of debt. Poor and middle class homebuyers lost everything in the housing collapse because of too much leverage and politicians started holding hearings to investigate the cause of the housing bubble and collapse, when after all it was them.
I think that everyone had a hand in the crisis. 1) Mortgage lenders who were only concerned about commissions that took advantage of home buyers. 2) Home buyers who bought homes that they could not afford. 3) The government for pursuing an easy money policy that led to an economic crash.