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Uhm... Lou Reed wrote the lyrics, Cale supplied the avant-garde, and Mo and Sterling kept the rhythm. They each played a part.
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In every band (no matter how lopsided the talent is) all the members play a role, so I think that argument is kind of moot. Nobody is saying Reed just sat there and plucked at his guitar. With that being said, I really don't think Reed's lyrics played as much of a role in VU's success as Cale's amazing production did. What The Velvet Underground is known for and truly respected for is it's avant-garde approach to music. I've never met someone that lauded the group's lyric writing as much as their music writing.
And yeah, I'll check out New York. I don't think I've gotten around to listening to that yet and it's been on my to-do list.