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Larry Kudlow is Dead Wrong: CRA Didn't Start the Meltdown

While I agree that Kudlow is a complete ass on this and many other issues, I have to agree with Curt above that the main culprits here were the many unscrupulous brokers who preyed upon the underclass with easy, money-out variable rate refi's and the like. I'm guessing laws may have been mightily stretched but not technically broken, or at least nothing provable--though not being in the industry, this is just a guess on my part. Much stricter lending standards are obviously needed, period, along with very strong disclosure laws so that people know exactly what they're signing and what kind of fees are being imposed.

The real estate speculators OTOH clearly gamed the system and ought to eat their losses as they knew exactly what they were getting into; they are a different story entirely. The real crime is that there were a huge number of low income, less sophisticated folks who were clearly snookered by the mortgage brokers; they are the true victims here and deserving of help by both the govt and the banks in keeping their homes. The foreclosure maps in my area (NY/CT) clearly show that the poorest neighborhoods were victimized by these sleazy easy-money salesmen who were no doubt charging huge fees for refis and the like: Rochester, NY and Bridgeport, CT are ranked among the highest in foreclosure rates.