Follow The Money. The Meltdowns And The Spitzer Connection

This is a good article that seems to make very good points about how the the prime rate mortgage and wall street meltdowns can actually be tied to what happened to Eliot Spitzer.

This current article now ties Spitzer with AIG.

Sure he was involved in a scandal, but something seemed very odd about his resignation.

Was Spitzer following the money?
Was he hung out to dry because he got too close?

I wouldn't be surprised if he was actually on to something.

March 14th, 2008

While New York Governor Eliot Spitzer was paying an ‘escort’ $4,300 in a hotel room in Washington, just down the road, George Bush’s new Federal Reserve Board Chairman, Ben Bernanke, was secretly handing over $200 billion in a tryst with mortgage bank industry speculators.

The Governor was using his own checkbook. Bush’s man Bernanke was using ours.

From out of nowhere, a company called ‘Countrywide’ became America’s top mortgage lender, accounting for one in five home loans, a large chunk of these ‘sub-prime.’

Countrywide and its banking brethren were told to party hearty – it was OK now to steer’m, fake’m, charge’m and take’m.

But there was this annoying party-pooper. The Attorney General of New York, Eliot Spitzer, who sued these guys to a fare-thee-well. Or tried to.

Instead of regulating the banks that had run amok, Bush’s regulators went on the warpath against Spitzer

... the feds actually filed a lawsuit to block Spitzer’s investigation of ugly racial mortgage steering.

Spitzer not only took on Countrywide, he took on their predatory enablers in the investment banking community. Behind Countrywide was the Mother Shark, its funder and now owner, Bank of America. Others joined the sharkfest: Goldman Sachs, Merrill Lynch and Citigroup’s Citibank made mortgage usury their major profit centers. They did this through a bit of financial legerdemain called “securitization.”

Spitzer’s lynching and the bankers’ enriching are intimately tied.

reply to post by Alxandro


I don't have time to read the whole thing right now, but I will later. In the meantime, good post. Star .

The first thing I did when I heard about Spritzers scandal was too look up information as to why he would be targeted. I did not find anything at the time, but now it makes sense.

It was the night of February 13 when Spitzer made the bone-headed choice to order take-out in his Washington Hotel room. He had just finished signing these words for the Washington Post about predatory loans:
“Not only did the Bush administration do nothing to protect consumers, it embarked on an aggressive and unprecedented campaign to prevent states from protecting their residents from the very problems to which the federal government was turning a blind eye.”

someone was out to get him, anyone have any idea who?

I know what you mean, something about this scandal was very fishy.
Call it gut feeling or maybe certain patterns are becoming obvious.

Whoooo?

I wonder what Spitzer is doing now?

Someone should setup an interview with him, it would be interesting to hear what he has to say.

reply to post by Alxandro


Star and flag for you.

I was never a big Spitzer fan at all, but the scandal really did stink of conspiracy. Wouldn't surprise me at all if this were true. The whole thing happened so fast too, and now he seems to have disappeared entirely from the public eye.

reply to post by Alxandro


OK, I'm finally back .

A question - If Elliot Spitzer decided that he was really going to try and take down the big boys, why on earth would he not stay squeaky fresh and clean? He must have KNOWN that they wouldn't hesitate to take him down. Why did he give them such an easy means to do so if he was really intent on changing things for the better?

I'm not really a fan of the Greg Palast article...too much spin. He acts as if someone forced these people to take these subprime mortgages. If a person had good credit, why wouldn't they either find a decent lender or keep renting? That's not blaming the victim, that's blaming one of the guilty parties. If Mr. Palast is to be believed, then the government really does need to protect us from ourselves since we can't be trusted to actually READ the documents we sign or delay gratification for something we want.

reply to post by sc2099

If Elliot Spitzer decided that he was really going to try and take down the big boys, why on earth would he not stay squeaky fresh and clean?

Everyone is guilty of something. I'm actually surprised that this issue toppled him. He wasn't even using public funds for his indiscretions. I never liked the guy, but I wouldn't have voted him out of office for this.

What I find incredible is that Bernanke is in charge of solving this mess. A mess he created. Talk about your Fox guarding the Henhouse. He will most certainly cover his tracks, now.

Greed on this scale is pure evil. I would bet that evenGordon Gekko would be disgusted.

reply to post by Lebowski achiever


Lol. Whole lotta "Gekko" goin' on. Synchronicity too. That flik was just on the other day. Great movie. Great reference.

Here's an interesting article I found about a possible conspiracy against Spitzer.
As far as I can tell he was good at his position as Attorney General and as Governor. He really went after those on Wall Street who were doing some pretty unsavory things behind the scenes as well as going after predatory lenders.

Elliot Spitzer, George Bush, and Wall Street

Very intuitive piece in my opinion.

There's a conspiracy theory which implicates Spitzer in 9/11, just google "Spitzer 9/11" for relevant info. If you're inclined to believe it, he was in on 9/11 but was possibly intending to launch an investigation and expose, among others, Larry Silverstein. The prostitute scandal was how they shut him up. His investigations into Wall Street made him infamous (and loathed) by a lot of people. There were plenty of reasons to get of him. Now we may never know what he knew.