Move over Ebenezer Scrooge. Kudlow says poor people caused the subprime crisis.
Naomi Klein predicted this "ownership society" blame-shifting maneuver in January. Behold! Kudlow says those guileless financial mavericks were forced into this crisis by poor people and "liberal guilt" in Congress. No GOP or corporate responsibility at all! Nosiree! (Stop laughing.) CJR begs to differ:
…the business press is in the process of making the same mistake it made in the run-up to the debacle: focusing on esoteric Wall Street concerns and ignoring the simplest, most basic, but most important one—the breathtaking corruption that overran the U.S. lending industry, including and especially the brand names, and the extent to which Wall Street drove that corruption.
Those poor, little lenders? Doctored loan documents, didn’t run income checks, programmed rose-colored quants, and, as Motley Fool details, committed "widespread gross financial misconduct." According to Herb Greenberg, Kudlow thought the looming financial shitpile was no big:
I can still see Larry Kudlow rolling his eyes at me, on set at CNBC, when I would mention, for the umpteenth time, the significance of the looming mortgage mess — and that this mess would extend beyond subprime to cut across all FICO scores; notice that neither Barry nor I have been on his show lately.
Maybe those nice folks whose retirement fundage is going up in deregulated smoke shouldn’t have listened when Larry and his "high on optimism" cronies spewed a smokescreen for their overly-leveraged, greedy pals. Kudlow’s "everything’s coming up roses" on the subprime crisis prognostication? Subpar.
Should have known from his forward for "The Bush Boom: How A Misunderestimated President Fixed A Broken Economy" just how subpar it would be.