Spitzer Whacked For Warning Of Financial Crisis, Bush Fed Targets Taxpayers As Bagholders

Roger Stone is the longtime dirty-trickster who knocked the socks off of Eliot Spitzer in a scandal of high-priced trysts that forced resignation of the NY Governor earlier this year. With a Republican pedigree stretching to Watergate, Stone needed little inducement more than Spitzer's capital "D" affiliation.

But, as the nation's taxpayers await the terms of our extortion by the Bush Administration's 'exempt from oversight' bankers' club under a plan -- including full immunity -- led by Henry Paulson, it's time to consider the political assassination of another White House enemy for the SOP it was.

Sure, Spitzer should have de-socked before his career-ending indiscretion. But we should revisit the prophetic message that was lost to the tsunami of Spitzer's scandalization two weeks later.

Predatory Lenders' Partner in Crime: How the Bush Administration Stopped the States From Stepping In to Help Consumers, Feb. 14, 2008. Washington Post.

Several years ago, state attorneys general and others involved in consumer protection began to notice a marked increase in a range of predatory lending practices by mortgage lenders...These and other practices, we noticed, were having a devastating effect on home buyers. In addition, the widespread nature of these practices, if left unchecked, threatened our financial markets.

Spitzer's omen went further to note that not only did the White House do nothing, 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 after 50 state Attorneys General and many legislative attempts failed to halt the worst of the predatory lending excesses. The AGs and their banking superintendents fought the Bush Administration's use of a Civil War era banking provision which established federal preemption of all state predatory lending laws and the new rules which emasculated state consumer protections from national banks.

Shortly before Stone's November tip finally mobilized national law enforcement to rescue Americans from the perverse activities of Spitzer and his calf-length socks, he left a final warning:

When history tells the story of the subprime lending crisis and recounts its devastating effects on the lives of so many innocent homeowners, the Bush administration will not be judged favorably. The tale is still unfolding, but when the dust settles, it will be judged as a willing accomplice to the lenders who went to any lengths in their quest for profits. So willing, in fact, that it used the power of the federal government in an unprecedented assault on state legislatures, as well as on state attorneys general and anyone else on the side of consumers.

We're now to let Industry's insider dictate the terms under which we'll spend the heritage of our grandchildren to repurchase the bloody bag of instruments of our rape? Elliot Spitzer warned us and was taken out.

Now, the banking industry wants us to pay for the repercussions of gluttonous global pillaging under the deregulatory regime. It's way past time to stop being complicit in our victimization.

Isn't it?

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His personal peccadilloes don't seem that interesting these days. I think your point is interesting and well taken.


I think this is the most astute observation of all in this entire debacle. I had forgotten about Spitzer! And I knew this was what he was working on when he got nailed by Stone.

it wouldn't be such a nice gift for the republicans - to be able to turn against the bush admin. - at such an opportune time (by voting against a bail out) and the election coming up n' all.

  1. Dems vote for the bail out and they are damned by the "fiscal conservatives" as "big spenders."

  2. Vote against a bail out and the Dems are "do nothingers."

One of those two memes that will have to be beaten. Pick yer poison well.

You would think it might even have been why Spitzer was brought down in the first place. Because they might have wanted to wait until now to unleash the chaos. Not that the bushies have ever said anything that might suggest they would pull shit like this...

The aide said that guys like me were "in what we call the reality-based community," which he defined as people who "believe that solutions emerge from your judicious study of discernible reality." I nodded and murmured something about enlightenment principles and empiricism. He cut me off. "That's not the way the world really works anymore," he continued. "We're an empire now, and when we act, we create our own reality. And while you're studying that reality -- judiciously, as you will -- we'll act again, creating other new realities, which you can study too, and that's how things will sort out. We're history's actors . . . and you, all of you, will be left to just study what we do."

You don't think the bushies are playing ya? They are playing you all in the hopes of giving the republicans an edge to cut the Dems lead with... And no matter what way this all goes - the big spenders or the do nothings - in the end the shitpile will be shoveled higher and deeper onto the next administration.

McCain will be left with a great reason to cut programs and benefits if, god forbid, he wins. And if Obama wins... He will be saddled with too much debt to make a real dent in change.

The rich will be rewarded for failure and the poor will be stuck with the bill for generations to come.

there will be no curb on the executive master minds' pay and compensation... that would somehow be too, I dunno, what?

I don't get it. What part of IT IS OUR TAXPAYER DOLLARS paying these incompetent greedy, me-too-ers.

the Iraqis think about their Oil.

Many of the responses I've seen to this story are exactly what the White House noise machine and its GOP operatives intend in ANY such operation!

Yes, Spitzer set himself up for being taken down, absolutely. Otherwise he would have kept it in his pants when away from home. NOONE can defend that.

But the arguments about Spitzer are EXACTLY the best result the noise machine would hope to achieve, focus the public discourse on Spitzer's wayward penis and AWAY from the Bush Administration and its cohort's roles in the destruction that's now at peak crisis.

Concede Spitzer's faults, then get to the real story.




"I hope we shall crush in its birth the aristocracy of our moneyed corporations which dare already to challenge our government in a trial of strength, and bid defiance to the laws of our country." - Thomas Jefferson

"Concede Spitzer's faults, then get to the real story."


What the US is going through is just crazy.online black jack forex trader on line craps on line roulette on line bingo

emelyj's picture

American economy is built on credit. Credit is such a great tool when used wisely. For instance, credit can be use to start or expand your business, which will also create jobs. It can also be used to buy your own house and cars. But in the last decade, credit went unchecked and it got out of control and that is the main reason why most of us are facing financial crisis right now. As a result, many companies filed for bankruptcy, which lead to rising number of unemployed and at risk of losing their homes. Our government did their best to prevent this from resulting to financial crisis, but it’s too late- the damaged had already been done. Luckily, The White House has launched a new program called the Consumer Financial Protection Agency, which will aid homeowners in securing a modification mortgage for lower interest and payments. Since the banking crash, a large amount of criticism has been leveled at the financial industry, some of it fair, but a lot of it is after the symptom instead of the disease. The Obama administration being concerned with debt relief is good, but home mortgages[SEO Link removed -- GH] are ultimately a symptom, not the disease.

Investors, creditors, and bagholders are now seeing that they will not be paid back. Raising the caps of Fannie and Freddie will accomplish nothing for the housing market.

[SEO Link removed -- luaptifer]