Elliot's Mess: Spitzer Investigation Tied To Fed Bail Out
At the time of Spitzer's resignation, I blogged that something about the investigation didn't pass the smell test, the Don Siegelman case foremost on my mind. But journalist Greg Palast has made a compelling case tying the Spitzer investigation to a different top story.
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.
Both acts were wanton, wicked and lewd. But there's a BIG difference. The Governor was using his own checkbook. Bush's man Bernanke was using ours.
This week, Bernanke's Fed, for the first time in its history, loaned a selected coterie of banks one-fifth of a trillion dollars to guarantee these banks' mortgage-backed junk bonds. The deluge of public loot was an eye-popping windfall to the very banking predators who have brought two million families to the brink of foreclosure.
Up until Wednesday, there was one single, lonely politician who stood in the way of this creepy little assignation at the bankers' bordello: Eliot Spitzer.
Who are they kidding? Spitzer's lynching and the bankers' enriching are intimately tied.
How? Follow the money. Read on...
The whole Bear Stearns bail out is hilarious when you consider how horrified these 'free market' proponents are at the thought of say, socialized medicine, but barely bat an eye at socialized banking. Privatize profits and nationalize losses, anyone? Meanwhile, decades of Republican economic strategy has brought us to a recession, if not teetering on the edge of a depression (The similarities in the economy of the 1920s and today are there for the finding). What will be telling is what kind of bonuses will be handed out to Bear Stearns executives in light of this massive failure of management.
Recent business stories have BearStearns being shopped for a buyer. Their main asset now appears to be that 28 day loan. Say good bye Bear Stearns
.
POP goes the bubble...
.
Regardless of any other political machinations that may have being going down (including Spitzer's investigation into the events surrounding 9/11), he got caught with his pants down. For six freakin' years.
Duh.
Just goes to show where his true priorities were. His dick.
Can this be legal?
enor @ 4:
Is this a rhetorical question?
The fact still remains, no one made them sign the loan, they should have looked at there income then looked at the deal, period.
Furthermore, why would they give loans to people they know could not pay, thats bad business because it will come back to them, like it is now. Of course he had to bring up race, just hold you down, did it all because the color of your skin, get real.........
I saw this on the news. $200 billion for bankers, and not a dime of relief for homeowners. The GOP at work.
That was $200 billion for bankers (who lent money in unsecured loans).
Your line about socialized banking is right on, Nicole. I am so sick of the neocons argument against Democrats forever being that the Dems will force socialism on us all. I see this in letters to the editor of my local paper all the time. I want to get those dimwits by their throats and ask them how they dare use that talking point when the leaders and corporations they're always defending are the biggest recipients of taxpayer-funded welfare there has ever been.
Abbybwood @ 3:
Just because Spitzer has an active libido (who among us can claim they don't) doesn't discredit the good things he was doing. It also doesn't explain why the F.B.I. was shadowing him. What's clear is that Spitzer made enemies who are experts at using peoples sexual proclivities against them for blackmail and extortion or failing at that, to ruin their careers. None of this excuses Spitzer for his indescretion, but that shouldn't be the issue. A man betraying his wife and patronizing a prostitute effects none of our lives, corporate malfeasance and corruption and control of our government effects all of us.
chris @ 6:
Do you understand what has happened? I think not. The banks then packaged the bad loans and sold them, thus the debt was no longer their worry. If you have a pension fund, it's very possible that you own some of that worthless paper. In the end, you pay with your loss in your investment, and again bailing out bankers who used TERRIBLE judgement. Never give a mortgage loan unless the buyer puts up at least 10% (minimum), is the general rule. They gave unsecured loans for more than the value of the homes, and sold that bad debt to-- possibly-- you, or me.
Read the entire Greg Palast story. Wow. I'm shocked, really, I tell you.
Socialize losses, privatize profits. The GOP in a nutshell. Rinse. Repeat.
Fourteen Defining Characteristics of Fascism
#9. Power of corporations protected. Although the personal life of ordinary citizens was under strict control, the ability of large corporations to operate in relative freedom was not compromised. The ruling elite saw the corporate structure as a way to not only ensure military production (in developed states), but also as an additional means of social control. Members of the economic elite were often pampered by the political elite to ensure a continued mutuality of interests, especially in the repression of “have-not” citizens.
Ed-hussein-gay-agenda-win Hussein @ 10:
Yes, I get it, and I think the market should self correct, no bail outs, this will be painful though, loss of jobs, higher interest rates, etc. The Fed is trying to put a pan aid on a gun wound. Everyone will be hurt by this and thus lessons will be learned. Most importantly that if you buy a house and they are telling you that you don't need %10 tell em to take a hike...
only Greg Palast could hook Eliot Spitzer to the Fed bailout of Bear-Stearns...
OK, that was a snide remark and a definite cheap shot, I have never read Greg Palast and have no need to read any more than was posted here....
Look guys, Eliot Spitzer is a hubris ridden demagogue who was parading himself as our "saviour", even as he was having back door affairs (just like Larry Craig) that he had once fought as the "law and order" guy. We had an immense amount of sport at Larry's expense, what stops us from doing the same with Eliot? He was "our" guy?
No he wasn't. He was never anything but his own guy, just like so many other's who enter politics. Go after Eliot, skewer him like John Stewart would... THIS IS HILARIOUS!!!
The Bear-Stearns crime was one committed years ago, one which is just now bearing fruit, fruit that we all have to eat (no matter how sour and bitter it is) It is the fruit of the "un-regulated" free market.
To connect that to Eliot Spitzer's ego....
Is a joke.
More delegates for Obama
http://news.yahoo.com/s/ap/20080315/ap_on_el_pr/democrats_iowa
Peter G @ 1:
You're right. The feds are talking to JP Morgan about taking over the Bear Stearns. There was very accurate speculation that these 28 day loans would be extended 28 days, then another, then another until they are forgiven in the interest of letting the company survive.
I don't know... The last 2,603 days has been a steady parade of daily outrage. I don't see how this story is any more significant than the elimination of Habeas corpus, the codified practice of torture, the illegal invasion of Iraq, or more recently, the removal of the General standing between the White House and Armageddon.
When you have so many High Crimes and Big Stories going on, there is eventually going to be some overlap.
To me, more interesting then whether Spitzer was connected to this, is the fact that this $200 billion corporate welfare paid for by us taxpayers was ignored by the media, while Spitzer getting his nob polished was promoted as front-page news.
No matter what one thinks of Spitzer and his hypocrisy, there is something wrong with this, folks.
The rationale for not letting Bear Stearns go under? They are too big.
Solution, don't let a company get that big. Corps aren't too evil until they reach critical mass. Then the size of even a fraction of the profits is enough money to justify anything, ethics and laws be dammed.
he used gov money and she is a whore , guilty on both counts .
Bernanke used public dollars and he is a whore, guilty on both counts.
Will the MSM cover any of this?
tom p @ 15:
So, you never read Greg Pallast yet you speak as an authority on him? Only he could make that connection?
Maybe you should look into his investigations. He flat out proved the Florida elections in 2000 were stolen.
Speaking with authority only works when you have it.
We cant believe what is happening to our country.
All hands on deck.
Hello McCain. Come back to america.
There is Senate Business that needs to be addressed....
This week's events involving the governor of New York, Eliot Spitzer, may however have helped to hide a more egregious misuse of authority, namely that of Federal Reserve chief Ben Bernanke and his central banking cohorts around the world.
http://www.atimes.com/atimes/Global_Economy/JC15Dj02.html
What? Paging McCain.
Youre campaigning in the wrong country.
Follow the Money.. Indeed..
McCain's London Fund-Raiser
..campaign donations at a $1,000-a-plate lunch at the 18th century Spencer House in --> London.
http://en.wikipedia.org/wiki/BAE_Systems
Connect the dots.
Just Why would Bush just last week --issue a new Executive Order that WEAKENS Espionage Oversight?
http://www.boston.com/news/nation/washington/articles/2008/03/14/preside...
In his farewell address in 1796, George Washington warned that America must be constantly awake against “the insidious wiles of foreign influence…since history and experience prove that foreign influence is one of the most baneful foes of republican government.”
http://www.nswbc.org/Op%20Ed/Op-ed-Part1-Nov15-06.htm
http://www.nswbc.org/Op%20Ed/Part2-FNL-Nov29-06.htm
“What will be telling is what kind of bonuses will be handed out to Bear Stearns executives in light of this massive failure of management.”
[Raises hand] Me!! Me!! I know!! I know!! Add them all up and they will total $200 billion. [Geesh, that was easy.]
It'd sure be nice if either Dem candidate would talk about stuff like this.
Oh well. I'm off of Jeremiah Wright now...
chris @ 14:
What all of this means Chris is, you won't be able to move out of your parent's basement and their investments will be worthless and you won't inherit anything.
You guys should have watched the CEO of bear Stearns on CNBC defending his company from liquidity rumors emphatically stating there was no truth to the rumors and BS was in great shape.
CNBC tried to defend the CEO Friday by saying balance sheets really can change over night and he probably didn't know.
Why would anyone invest in a company that can become insolvent overnight with the CEO knowing nothing?
Include CNBC as being "in" on this. Not the Spitzer thing, but unjustifiable corporate welfare.
Oh, and C&L, my browser has crashed on your site about three times in the past few days. I wonder if that obnoxious HBO ad has anything to do with it...
Another example of "the free market" at work. The crooks and gamers are "free" to do this time and time again--echoes of the S and L Debacle anyone?--and they market this line of BS repeatedly and quite often very successfully.
National Healthcare? We can't have that!! Its not "free market"!! Don'cha kno'!!
Big Money gets greedy and runs to WashingtonDC and walks away with lots of taxpayer loot to make up for the crooked schemes gone awry.
Where are the "let the free market work" cheerleaders and hucksters now?
Speaking of "privatize the profits and socialize the costs" whad'ya think Iraq and the Permanent American Occupation For Iraqi Oil is all about?
Lets see...American taxpayers pony up the dollars and armed forces so big oil/energy can get in on Iraqi oil and walk off with the profits with reduced political risks or economic hazards. Am I close?
So with the costs of fuel (gasoline or diesel) now easily found in the $3 -$4 range per gallon at the pump across America and trending towards being over $5 given a few more ME or South American jitters who is raking in the big bucks?
The American taxpayer is taking it on both ends. Pay and die for Iraq oil and then pay big energy lots more to get and use it.
Oh. Thats right--we must have the free market.
And sure as hell WashingtonDC is the market for free $'s and blood.
And we have a a*#h&*le in the WH who is so happy he is dancing out in front of the WH and singing "funny" songs about how he does not give a s#it about what he has done or did not do these past seven plus years.
Who wants Johnny Boy for President next? He wants to give us more of the same.
There is no shame. None.
As always, the consumer/tax payer will carry the burden.
The news reports that I have been reading say that the $200 billion, which is nearly half the total funds that the Fed has available, is nowhere close to the amount needed to actually halt collapse of the banking system. Another aspect that is just now percolating to the surface of public awareness is the fact that many of the banking regulations put in place after the 1929 crash have been removed or changed in the past few years. The common perception is that a Depression cannot occur again. The reality is that we very well may be on the leading edge of one.
Of course they want to float Bear-Stearns, if things come completely apart everything point to who?
It's all about inept bush administration who instead of fighting the war that needed to fought,
started a personal war for bush, one of greed lead by the Ideals of the NeoCon group. Bush
played right into the hands of OsamaBin Ladin. He lied to the American people repeatedly as
did all the Neocon (wolfowitz, rumsfeld, ashcroft, etc.) about WMD's. His own man Powell
warned him, that if he didn't have an exit plan it would go on forever. Well, here we are, stuck
in a war costing 13 billion a month and neglecting America's needs. We had no need, no reason
to go there and now Afghanistan is falling apart from neglect. "The only ones who benifited from
war is Iran. The $550 Billion we have thrown into Iraq could have rebuilt Americas infrastructure
fixed our roads and bridges, put Americans to work, but we have an idiot sitting in the most
powerful seat on earth. Bush has ruined not only the Economy, but the good name of America
throughout the world and destroyed our military. Men who volunteered for one are serving
3 to 5 terms at the front, and all because of a guy who deserted when it was his term to serve.
It will take ten or more years to recover from this idiots tinkering. The American Dollar isn't
worth crap anymore. It's lower than the Canadien dollar and now the rest of the world doesn't
want to use it as a standard anymore. It lays at the doorstep of Georgie, he destroyed every
company he ever owned, destroyed his baseball team his daddy gave him and now he has
destroyed us. You want my opinion, fuck bush, every one of them and fuck the NeoCon
Republican party who kissed up to the religious fanatics in this country. And fuck every
one of the 28% of Americans (the moron factor) who still believe in these charlatans.
knifewrench @ 30:
I have had the same problem.
Ron @ 28:
Way to elevate the conversation, please do not project your own insecurities on me, thank you....
The system needs a good flush out, then the market will return to normal......
The hands of the democrats is just as dirty in this loan scam!
David N @ 21:
The money was out of his own private account. Research before you post something so stupid.
FALSE MEDIA MEME ALERT!
"Spitzer is oh so holy, having made a career out of prosecuting prostitutes, serves this holier than Thou right, tsk tsk"
Absolute bollocks.
Spitzer made his career out of prosecuting Wall Street excesses; including the predatory lending of home mortgages which (we all know that right?) had a big impact in ruining our economy.
Palast is 100% correct on this one. I am writing a post on this as well, which will basically consist of shamelessly copying Palast and then providing links so that the naysayers (you know - the typical nyah nyah nyah 5 year old intellect crowd) will be stuffed.
Short version - Spitzer was taken out, Don Siegelman style, by the corrupt and extremely politicized Dept of Justice. While they originally wanted to find something to smear Spitzer with, they actually found an actual item to ruin Spitzerman - it was like a manna from heaven to them.
Two hundred billion by the Federal Reserve an unsecured loan, and only has a life of twenty nine days.
Seems they can be some what truth full about a timeline when it comes to money. But stick a life in arms way in a war there is no time line. Isn’t that something? Don’t you think ?
Or, would this be something like every tax payer pull out a hundred bucks, whether have it or not, walk up to a homeless person and just give the money away.
I have heard roomers that this credit thing can not be solved by a tax payer bail out it is so big Bernekie would be standing at the Federal Reserve Board cash cow window handing out money day and night for an unknown period of time.
That’s why Bush rejects a tax payer bail out. But as we know Bush and Company by executive order can create a new agent of money exchange and because of National Security Secrets reasons hand out money secretly anyway to his friends to keep the market floating till the election is over.
Bush and Company found out how to choke the market just enough.
Agreed the system needs a good flush out and bailouts should not happen. However, you need to realize the financial sector is broken. It is through the financial sector tha the fed's adjustments are dispersed through the economy. Did you notice the rate cuts did not have an effect? That's why they went to the second approach of issuing bonds to financial institutions. There is a lot of speculation that this will not work either.
I just take issue with your comment the market will return to normal after this. This one is more serious than we know.
buy food staples now and hide them , learn to live on a cup of rice a day , we are in for tough times my brothers and sisters , and dont forget to take care of the old ones and those that cant help their self ( the young'ns ) it is going to get worse .
chris @ 36:
Have you taken your meds today? The market is what has made this mess. It will not return to normal. Is it normal for the fed to have to bail the banks out with 200 billion dollars?
Ron @ 38:
and where did that money come from , oh his job !! right !
Ed-hussein-gay-agenda-win Hussein @ 12:
Another take.
Privatize profits, Nationalize losses (but borrow the money so no one notices) and by all means (really) consolidate the news outlets so those that do notice won't get the story out.
End of story, end of country.
David N @ 43:
Again, do your research. His father was very wealthy and he inherited it. If you are too stupid to read about the guy, you shouldn't be making comments.
Since the McBush Mob has gone global and our u.s. media has become nothing more than accomplices
.... need to look to those who are telling it like it is...
... scholars, real journalists..
Speculative Onslaught. Crisis of the World Financial System: The Financial Predators had a Ball
http://globalresearch.ca/index.php?context=va&aid=8158
Paging McCain.
Youre campaigning in the wrong country.
http://politicalticker.blogs.cnn.com/2008/03/15/mccain-to-host-london-fu...
The fundraiser will be held towards the end of his week-long trip, which will include visits to Iraq, Jerusalem, London and Paris with supporters and longtime friends Sen. Lindsey Graham and Sen. Joe Lieberman. They are slated to meet with French President Nicolas Sarkozy, British Prime Minister Gordon Brown and Israeli Prime Minister Ehud Olmert.
What does the Fed have to do with Spitzer really?
The Fed has been trash for decades; Before During and After Spitzer.
Ron Paul was talking of abolishing the Fed, but the "cool kids" didn't think Ron Was cool enough.
I hope the Left now understands that fiat money is the tool of despotism.
Abbybwood @ 3:
men who work hard, like to play hard too
you fuckin moral prude
David N @ 43:
So you're saying he shouldn't be able to spend his own money, just because he actually worked for it?
unfortunately, palast cannot possibly tie these two events together BECAUSE he can't prove that the department of justice intentionally ordered the sting, so as to net spitzer.
no proof, no story.
just conspiracy theory.
next item, please. this one is about as 'out there' as the 'building 7 had to have been intentionally imploded.'
if palast's story is true, then spitzer (a damn good lawyer) could have proved so in a court of law, vindicating himself from any serious wrongdoing. by "serious," i mean, 'worse than just paying for some pussy.'
we all need pussy, right? right?
If you examine any politician, (R) or (D), you will find plenty of filth to roll him or her in. With Spitzer, they didn't have to go very far. Linking the Spitzer fall with a loan to corrupt banks is just to stupid to read about. Bush would have loaned the money with or without Spitzer. Just look at what he has done with Iraq. Bush and his thugs don't need fall guys anymore.
Hoku @ 49:
Guys like David can't get past the headline. Way too much reading and it makes his head hurt.
i have to say, spitzer still was dumb
things like wire transfers and using escort services that take personal info, will definitely get you caught
and as he was taking down the rich and powerful for years, he shoulda known that they would be gunning for him
but it truly is a wonder that the country is more enamored with this story, then the fact that there is no doubt, we are headed for a depression
soon, the 1000 dollar trick should be had for about 50
bring on the good times
Yeah the bankers just HATE government regulation. But when they are on the verge of collapse, who do they go crying to?
"Oh please Mr. Bernanke. SAVE US!!!"
Fucking traitors. They lined their pockets not caring one whit what would happen to our economy. I hope they all start jumping from the rooftops. Karma's a bitch sometimes.
bryancri @ 50:
it may be supposition, however, show me another case where a multimillionaire pol has had his banking investigated when he started moving thousands....and despite the irs finding nothing untoward, sending it over to justice
show me another prostitution bust where thousands of man hours and hundreds of thousands of dollars are spent in investigation and wiretaps
show me a prostitution bust that started with a john, and not the agency
the feds dont bust hookers
the story still stinks
Che's Lounge @ 54:
It's only the ones who try to ride on the coattails of these crooks that lose their fortunes and jump off the roofs.
Ron , nice try ,
they are both quilty of crimes
your phrase "Privatize profits and nationalize losses" was on the money.
David N @ 57:
Nice try yourself. I didn't asy he wasn't guilty of a crime.
Ron @ 59:
say.
[Deleted-Sitemonitor]
Another Justice Department "red flag" came from a U.S. Attorney the day after the 4th of July in 2007
http://www.truthout.org/docs_2006/070907N.shtml
All of this... Its not the first time that a criminal investigation has been politically motivated.
US grand jury in Guam opened an Investigation of Lobbyist Jack Abramoff -
Bush removed Federal Prosecutor, Probe Ended
http://www.boston.com/news/nation/washington/articles/2005/08/08/bush_re...
xoites Hussein defends Constitution @ 24:
maybe pallast has a good record, but this spitzer connection is weak and not well substantiated by his article....bunch of mere coincidences...his argument is basically that theres too much money at stake for their not to be some conspiracy.....that's a pretty flacid argument...
this ranks up there with some of the kookiest conspiracy theories...
john @ 61:
The same goes for Obama
Wouldn't it be great if we could have a national day of attonement, whereby public servants could confess their sins and free themselves of their blackmailers? It's so absurbly Christian it might actually work.
Ron @ 52:
pallast's argument gets weaker the deeper into the story you read.....in this case, pallast's conspiracy theory would do well if nobody read past the headline..... those who do would agree its nuts
Media Muncher @ 64:
amen, but don't count your chickens....i agree that he'll get the nomination (he deserves), but i don't think Clinton will relent soon, even as this latest preacher flap falls flat and doesn't stick...
ohio progressive @ 63:
Maybe, but he is right much more often than wrong. With Don Siegelman getting the shaft you have to stop and wonder.
I still want to know if the wiretap was on the Governor first or the prostitution ring first.
Ron @ 60:
not a prob
Shopchef @ 65:
Even better, we wouldn't have this web site to waste our time. We could be even better citizens. ... NOT
♣Bangkok Bob♣ @ 34:
These are some of the best words strung together I have seen here in a while. You can cut and paste them on anything to point out the truth about this administration. I only hope I have been able to say it this well in times I have tried.
ohio progressive @ 66:
So, what's your point? I don't think I was in on that discussion.
One thing is for sure....
This Administration and their crony accomplices in the Justice Dept cannot be trusted.
Gret job Greg Palast
A trusted journalist.
Just wait until the Vulture Funds gets busted...
http://www.gregpalast.com/vulture-fund-threat-to-third-world/
Ron @ 72:
maybe i didn't get past the headline on your post, sorry...i misread your guys comments
:-)
i should be out dancing anyways, its saturday...going to get my disco shoes
This is THE best post on C&L EVER!
"The whole Bear Stearns bail out is hilarious when you consider how horrified these ‘free market’ proponents are at the thought of say, socialized medicine, but barely bat an eye at socialized banking."
HAHAHAHA....word up. That is EXACTLY what Wall Street wants! That's the system we have! They benefit from socialized banking in a completely different way than they would from, say, socialized medicine. When things are socialized, it doesn't automatically mean everyone gains equally. This is ESPECIALLY true in banking. This is because with socialized banking, the FIRST RECEIVERS of the newly printed money gain AT THE EXPENSE of those who get it later on. This is because PRICES, or the price level, is a ratio of the total amount of money in the economy over the total number of goods and services the economy produces.
This is true for prices that we NOW observe. But when newly printed money enters the economic system from a printing press, like that $200 billion came from, a FINITE number of people are able to take this money and OUTBID others for resources, because those resources were priced at the lower level according to how much money was in the system before!
This act of new money serves to increase demand for products and services, and thus always raises prices. Those unfortunate people who must wait a long time to receive that new money, for example people on a salary, or bond investors, or anyone who is on a fixed income type stream, observe a rise in prices BEFORE their own incomes rise! This is the exact mechanism by which REAL wealth, namely goods and services, end up becoming CONCENTRATED to those CLOSE to the Federal Reserve!!! It is not a personal issue of friends helping each other out, this is a mechanical issue by the nature of the system we have in place, and goes way above and beyond each person as a productive individual. This is also exactly how the middle class is getting wiped out in the country!
This is EXACTLY the right path to go on guys. There's a tear in me eye. Free market principles are for THE AVERAGE CITIZEN to benefit. I think just the understanding of, and naming of, the monetary system we have, namely "socialized banking", makes the real problems of this country a million times easier to see. Bravo C&L! The truth is fucking awesome!
"Privatize profits and nationalize losses, anyone?"
Fuck ya, that's exactly what it is!
"Meanwhile, decades of Republican economic strategy has brought us to a recession, if not teetering on the edge of a depression (The similarities in the economy of the 1920s and today are there for the finding)."
Hmmm...yes they contributed, but then again, socialized banking has been around since 1913, meaning both parties throughout history have benefitted from its evil structure.
"What will be telling is what kind of bonuses will be handed out to Bear Stearns executives in light of this massive failure of management."
Probably really high, but they should be paid tons because they are ultimately responsible for a firm's profits, if they are operating in a free market devoid of central banking.
The Smiths @ 73:
great job on the bailout angle
the spitzer connection is bogus and silly
We must demand Regulation - 'free market' is a scam!
Corporations are not people and should have fewer rights, not freer reign. They use more infrastructure than individual ever has, yet they pay little to no taxes.
The next politician, pundit, or free-marketeer who wants to push deregulation or uses 'its good for small business' (these people don't give a damn about small business) needs to be tar and feathered, packed in a crate and shipped to Dar fur where they will be mistaken for the flightless fowls they really are!
We must stand up for each other, because ultimately no one else will. They count on these divisive comment rolls to separate us.
"If you fail, rational change will be gravely prejudiced throughout the world, leaving orthodoxy and revolution to fight it out"
John Maynard Keynes to FDR in 1933
The conditions are starting to look like we are headed into a very similar era, so what if Spitzer was destined to be our FDR and we let him be destroyed over something that really shouldn't be a crime anyway?
I'll be fighting on the side of Revolution, suck it orthodoxy!
Thanks C&L...
We all knew there was more to the Spitzer story than we were being told...
The History books are still being written...
drew @ 75 ,
Huge bonuses , its the corp way
The Smiths @ 79:
here's a good common sense article about the conspiracy behind spitzers fall
http://www.timesonline.co.uk/tol/news/world/us_and_americas/us_elections...
maybe pallast could get a gig with art bell
Taonzen @ 77:
A true 'free market' is not a scam. However, what we now have is not a 'free market'.
Apparently the lessons of Enron and deregulation weren't studied very hard. Now comes the test of Reganomics. Let's all stand underneath the urinal that is Bear Stearns and see how much trickles down to those mortgage holders.
Maybe the american people should read more and make up their own minds.
http://www.gregpalast.com
Maybe the american people should vote in massive numbers.
--> They are.
john @ 61:
Which messiah is that?
I'm glad you posted this, as I had hinted at it earlier this week...only mentioning Bear Stearns.
Greg Palast does his homework well, and I'm finally bookmarking his site.
We taxpayers are being fleeced to the tune of trillions by the FILTHY republicans.
According to Bobby Kennedy today, they originally told us the Iraq war would cost $50 billion, and that Iraq oil revenues would pay that cost. This is what that fricken Rumsfeld told us...you remember that bastard, don't you?
Now, the cost to Americans is close to THREE TRILLION dollars. If you divide the 300 million population count into that number alone, it's a $10,000 bill for every woman, man, and child. Each of you has a $10,000 debt to BushCo because of Iraq.
This administration, American corporations, and the filthy republican party are draining the life-blood from this country...and most of us don't even realize it yet.
Media Muncher @ 70:
the ides of march
The Smiths @ 84:
maybe palast should call art bell with his silly unsubstantiated conspiracy theories....
maybe he should read some international press
http://www.timesonline.co.uk/tol/news/world/us_and_americas/us_elections...
Ron @ 38:
Stupid is as Stupid does. And Stupid does not need research.
Just an internet account.
Palast needs to stop hyperventilating. First off, subprime didn't start with Bush, it started long before that with Stanford Weil buying subprime mortgage companies that he eventually built into what is now Citibank. That's how it started.
To say that Spitzer could somehow on his own take down the Fed and Bush and thus needed to be stopped sounds like the plot to a badly written crime movie rather than anything to do with the facts.
You want a conspiracy theory? Here's one. The Gambino Family that Spitzer made his original reputation by prosecuting is the same Gambino Family who apparently has links to the prostitution ring.
Revenge is a dish best served cold.
Or maybe some of the Wall Street types Spitzer destroyed hold grudges too.
ohio progressive @ 81:
the times is just looking at spitzer's hypocracy, and the myth of the escort service providing a higher quality of girls
im waiting for a real investigative reporter to look into how the fbi first really got involved and why they would spend thousands of man hours on what seems to be nothing more than a class b misdemeanor
the mann act is bs, as it is supposed to cover pimping
today is the Idus Martiae ,
watch your back
In a normal western democratic country, the opposition would scream about such a mafia bailout.
Not in America.
Sheep.
knifewrench @ 30:
Yeah same here! I did a viris check and found nothing, been trying to find out what happen. Please C&L keep simple banner.
Cas @ 94:
We're too worried about how someone complaining about the country rubs off on a presidential candidate. MUCH more important.
xoites Hussein defends Constitution @ 68:
A very, very good question.
Cas @ 94:
Bend over and baaaaaaaaaa
This story really gets my blood pressure up. What kind of country am I living in? Damn it.
noodleboy hussein @ 99:
A fascist country.
We've been saying this for some time now.
It is 100% true, too.
noodleboy hussein @ 99:
the land of the free
and the home of the brave
if you are a jack boot
paranoia @ 95:
Yeah, mine started crashing on that Condilesbian Rice thread.
Alan D Schwartz
President/Director/CEO at
The Bear Stearns Companies, Incorporated
Cash Compensation (FY November 2007)
Salary $250,000
Bonus $16,237,150
Total $35,734,422
Stock Options (FY November 2007)
Total $52,907,900
L.A. Confidential @ 103:
52 Million. Not bad paid for a failure.
L.A. Confidential @ 104:
Actually a success, considering he suckered us into bailing him out. /sarcasm
"The whole Bear Stearns bail out is hilarious when you consider . . ."
No Nicole, there nothing "hilarious" or even vaguely amusing, or worth using as a metaphor to underscore some progressive point of view, about Bear Stearns.
This is scary, scary shit. If Bernanke doesn't pull this off, Bear Stearns could crash the US financial system. Or confidence will be reduced to the extent that the next institution to hit the wall (Citigroup and Merrill Lynch are among the likely candidates) will bring everything down. We're talking Depression here.
Almost nobody is writing about this. The US media is fuckin' asleep.
Bear Stearns almost collapsed yesterday. Goldman Sachs announced big writeoffs today. It's getting worse.
The UK papers are telling the story. There's a columnist at the Daily Telegraph in London, Ambrose Evans-Pritchard, who's been writing about the collapsing dollar and US credit crisis for months. Definitely worth a look, if you owe any money on your credit cards, your house, if you have a job (or not) or buy gasoline.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/03/12/cnfed1...
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/03/12/ccom11...
L.A. Confidential @ 104:
Oh sorry thats closer to around 88 Million Cash Compensation and Options Exercised.
One Guy!
Otay @ 106:
Let the taxpayer bailout begin.
I'll bet righteously f*ckin' awesome ones, for getting the Fed to suck on all that worthless CDO with our money.
BTW, the takedown of Spitzer is an amazing thing, just because it's such a brilliant piece of politics. Consider:
1. R's crush yet another D governor, the East Coast version of the Gray Davis kill.
2. Spitzer out means less oversight (if that's possible) of the imploding banks, many of which are based in NY.
3. The personal mob-hit pleasure of revenge against someone who dared question the money machine.
4. The Democrat-who-can't-keep-his-dick-in-his pants angle scores points against HRC and Dems in general.
5. The non-stop coverage of the sex provides another week's cover for the collapsing US financial system.
I mean, disgusting as it is...damn, those guys are good.
Good thing we're better. (This ought to be warning that we'd better act that way, too.)
L.A. Confidential @ 108:
Yeah, and it dwarfs Iacocca's salary that he awarded himself when he got the government to bail out Ford. Makes me want to become a CEO so I can drag my company into the muck, get bailed out from the U.S., and then give myself a hefty bonus.
Sorry, I forgot I should not be taking this topic so seriously. I should be far more interested in where a government official put his penis.
Now look up Countrywide's CEO compensation, LA...
I just can't take any of this lightly or with sarcasm, because we are paying for it...and going without (health insurance, media that is in the public's interest, etc.).
Annoyed Canuck @ 107:
"The banks are facing a “systemic margin call” which is leaving them capital-depleted and unwilling to lend. Thus, the credit markets are shutting down and there's a stampede for the exits by the big players. Bernanke's chances of reversing the trend are nil. The cash-strapped banks are calling in loans from the hedge funds which is causing massive deleveraging. That, in turn, is triggering a disorderly unwind of trillions of dollars of credit default swaps and other leveraged bets. Its a disaster."
Lollimom @ 113:
Its very serious. Very serious.
More taxpayer funds and investigations....
Winter Soldier hearings are revealing very serious corrupt activities of contractors in Iraq.
http://vfpgainesville.blogspot.com/
http://www.ivaw.org/faq
http://www.warcomeshome.org
Lollimom @ 87:
The Smiths @ 116:
Steve Forbes, Ben Bernanke, Paulson and the lot of them could care less if the middle and lower classes starve or fail as long as their friends in the banking industry stay afloat and preserve their "way of life".
Leave it to Greg Palast to do some actual investigative journalism concerning this infuriating story.
Honestly,I don't know how much more of Bush and his cronies I can take.
L.A. Confidential @ 115:
thanks for doing some of the leg work on this LA.
I've been watching this from a distance(a short distance)
The Spitzer "scandal" never smelled right to me, always looked & felt like a political hit job.
Look at the way it was portrayed:
- "he had ties to a prostitution ring" = he was really simply a john
- "wife puts a troubling face on .. " = she was standing beside him during a couple of public announcements
I mean, someone was going to a prostitute?!?, this is news?!?! (.. a politician, even less surprising.) BUT, it's a convenient issue by which to destroy someone's public career. Sells papers to the emotionally infantile and sexually neurotic (that is, sells lots of papers).
At least from his wikipedia entry, he wasn't particularly a crusader against prostitution, but against issues "relating to corporate white-collar crime, securities fraud, Internet fraud, and environmental protection." The sort of guy who gets republicans pissed. Sounds like he basically did a lot of very substantial, very good work.
Otay @ 112:
Hell that could get you kicked out of the WH , a million dead , thousands , wounded forever not a prob. KBR rules
mudshark @ 119:
All economists and investors know everyday right now can be the day we see a major crash. Thats what last weeks bailout did. Prevent a major market crash. And thats why the Feds have been pumping cash into the system since Jan 1. The biggest bubble in history popped last August. It's over.
The Feds are trying to prop up the economy with bailouts, smoke and mirrors long enough for Bush Co to hit the exits. In the meantime their buds are already heading to the exits in case you haven't noticed.
I don't know whats going to happen. We're in uncharted territory and we have big problems.
The Sting: A Few More Questions
Note that this prosecution was managed with staffers from the Public Integrity Section at the Department of Justice.
--> This section is now at the center of a major scandal concerning politically directed prosecutions.
http://harpers.org/archive/2008/03/hbc-90002589
What's really sick is how the "Fed" was forced on the U.S. in the first place :
http://blip.tv/file/557625
Buy gold and head for the hills !
An abundance of dirty schemes past and present, unreported by MSM. On a side note, turns out the CIA front company, Brewster Jennings outed by Richard Pearl along with Valerie Plame was targeting the American Turkish Council for suspected sale of classified intelligence. The ATC is at the center of the Cybil Edmonds whistle blower affair, also involving passing nuclear secrets by some high level US officials. Note that the outing of the Brewster Jennings company as a CIA front effectively halted the FBI and Valerie Plames investigations into ATC activities.
Richard Pearl is known to have close ties with the ATC, as well as the seven largest weapons manufacturers in the world.
iraqhusseinconcilable @ 124:
nay , buy rice and food sups , then head for the hills
oh and you love your wife / husband so you go to a hooker on feb 13 , right .
Keith @ 120:
but he did prosecute similar agencies
Why is everything the repugs do is tied to greed, death and pervert sex?
I mean really.
repugs do it to us, to others, to our land, to our goodwill, to Plame, to Don, to Spitzer.
Go Obama!
Go USA!
chris @ 6:
troll
I know because you're igorant.
Palast's analysis makes sense and until someone proves otherwise I'm inclined to believe it, though all of it is conjencture.
Yet, I'm still pissed at Spitzer. Of all people he should know he'd be a political target. If low information voters know the govt can now spy on anyone it wishes to, shouldn't Spitzer have known too? He could have done so much but put his penis before his country.
SuburbanGrrrl @ 131:
little dick ,
big country
People still don't seem to get that, whatever Spitzer's sexual behavior, there have been Republican politicians who were known to be doing similar and and even more embarrassing sexual things (like having prostitutes put them in diapers) but they did not get slimed for it in public the way the right-wing media is doing to Spitzer. Like it says in Palast's article here. If you'd read all of it. Palast has connected the dots the way real journalists are supposed to. If you read Palast's piece of investigative journalism here and at the end find that your mind is still dominated by the thought that, "Well, he got caught in sexual improprieties so it's his own fault," then there's no hope for you; your mental focus is totally controlled by US corporate media.
It will take a new administration (hopefully Democratic) to offer protection to the undoubtedly hundreds of potential whistleblowers (non-political appointee civil service types) at DOJ, and probably every other federal agency. The first 6 months of 09 may just be historical in scope, dwarfing the Watergate hearings and Iran Contra. Or, meh; we may be distracted by another round of Britney's foibles; who knows?
no matter what spitzer did anything the bush bastard has done is a trillion times worse.
I don't know how bush supporters became so stupid gullable and foolish. What makes republicans hate america so bad that they would vote for the shit they keep voting for?
I don't know if the Spitzer case is related to the Bear Sterns matter, but I do think that the Bush fiscal policies have backed the Fed between a rock and a hard place. Bush set upon destroying a balanced budget with a zeal that I've never seen before. Bush was a tax cut ideologue but failed to associate it with budget cuts. Now, there is a credit crunch, and the borrower on the biggest binge was the Federal government.
The Fed can either lower interest rates, which will weaken the dollar and incite inflation, or keep interest rates steady, which, under the present circumstances will allow the nation to slip into recession.
According to Channel 4 (Britain) , there is a "credit default swap" fiasco poised to engulf the economy shortly. I have yet to hear any questions poised or statements from Bernanke regarding any future impact to the economy through credit default swaps.
The only thing holding up the stock market is that the weak dollar is enabling foreign investors to buy stocks on the cheap. Our corporate owned politician is now a foreign owned politician with no economic loyalty to the U.S., not that they ever had. But now, with their desire to pit U.S. labor against 3rd world labor in order to depress wages, while reducing taxes on dividends and interest, they have reduced the tax base of the U.S. while their multinational corporate owner can improve on shareholder profits.
China is using its surplus of dollars to expand in Africa, while we remain mired in the quagmire of Iraq, engineered by Bush. I think Bush's biggest foreign policy disaster will be viewed in 10 years not as Iraq, but giving China economic leverage over the U.S.
And now, the politicians are clamoring for a Federal bailout, of Bear Stearns, and/or the foreclosed homeowner and so forth, financed with what - more borrowing? Hate to say it, but all the problems have been caused by borrowing - too much Federal borrowing, too much personal borrowing such as credit cards, and mortgages that had repayment terms not suitable for the borrower (because the lender was packaging the loan into securities and was not concerned with repayment). As Ronald Reagan preached (but did nothing about), "we have piled deficit upon deficit, mortgaging our futures...", and now the bill for this is due. I think Bush will wind up being Hoover and Nixon all wrapped into one.
James Ratliff @ 135:
bush supporters ? , ah they are just a hand full , right hand , left hand , toes , it is who counts the votes that count .
NoBuddy,
excellent comment. It is sad but I hope not telling that Obama has Pritzker (a blatant mortgage crook) as his money lady. The idea of privatizing the profits and socializing the risk is as old as mercantilism and at one time functioned in the way insurance does but now the people creating the risk, the bankers in this case, are only the middlemen. They are able to pass on the risk to everybody else via complicated transactions that can take down companies that have nothing to do with the actual lending and, if those companies stocks plummet because the paper was overvalued, then the government (us) bails everybody out. However the concept of privatizing the gains and socializing the risk is at the heart of most cooperative ventures, even unions. A place were it is working well is in Ethiopia. Check out this TED lecture by and Ethiopian economist.
http://www.ted.com/index.php/talks/view/id/185
probably one of the worst "associations" that I have ever seen. spitzer and bernake? Granted, I think that bernake is running this country (economically) into the ground. However, your streamlined comparison is not fair.
note: I don't like either of them.
Vote McCain
Do Work, Son @ 139:
wait I'm still throwing up , did you say vote McGain , hello planet earth calling , calling ( still dialing , on hold now ) dial tone , sorry wrong number . Mc Whore , ok I guess he appeals to thoses who have an IQ of less than 60 , some what like walker texas ranger .
deang @ 133:
you're just wrong...
first, maybe you should read palasts article, there is nothing there but a list of coincidences and a forcibly tweaked eyebrow....the connection is a joke, and i heard a more compelling argument on art bells show last night that aliens and crop circles caused spitzers fall.
spitzer is very high profile, and he deserves the media coverage....
vitter was a hillbilly nobody knew of, it has nothing to do with partisan loyalties... members of the house have no respect in the media and/or the public, there are too many kooks and crooks...
senator craig was dragged through the mud by everyone, and he was an anonymous senator from iowa...
mccain-- hasn't been caught red handed pants down, but if he does, they'll drag him too....
eliot spitzer was a national figure, a national hero, a fairy tale in the style of barack obama.... i think his fall is more dramatic than clinton's even, because spitzer was somebody adored and adulated by the good guys, hated by the bad guys...
no conspiracy....just a real hero crashing to earth...
too bad he just didn't get divorced before he felt compelled to diddle..
or simply confess that he and his wife have an "open" marriage, and have been swingers for years....
nobody would care but for the betrayal of his family...
I know I'm old and just an old foggey , but to cheat on the one you love and get busted the day before V-day thats bad karma , por vida .
I have been trying to read the memoirs of US Grant what I find funny is that history paints a picture of a presidency that was ripe with scandal. Before and after his time in office he had many failed ventures ( thanks to his own bad judgement and also because of his business partners) In the book he even thought of ending it all. funny how times have changed now when heads of business screw up they are given golden parachutes that put them on easy street for the rest of their lives I say bring back the days of remorse and shame when you mess up as bad as these weasels ( no offense weasels) maybe a little tar and feathers
Alice Hussein @ 11:
Nothing the Bush Crime Family does is a surprise anymore. The only thing I'm surprised at is that investigative journalists like Greg Palast and Keith Olbermann haven't been taken out and given a pair of cement overshoes. And, I'm sure the gang and their predatory big money bankers are going to make life hell for whoever the Democratic nominee is going to be.
The fascist are so paranoid that they themselves might have to work one day for a living, they have built gas chambers on the taxpayer dime, to imprison those of us who would not work for 20 cents a day, while they the corporate assholes want to lavish in Parris in the morning and Hamburg at night.
hope @ 8:
Yes that is absolutly correct they always start screaming and crying about socialism and quite frankly most of these people are so batshit ignorant that they don't have a clue what they are talking about.
We need to just put the republicans in there place a mental hospital someplace quite and warm one of there favorite places with chicken and waterboarding, They would love it! They think it's great for everyone else why not give them what they want?
A GREAT WIN for the GOP because of this jerk.....and 90% of Americans don't even know this. Eric Margolis does it again. Today's MUST read......only if someone wants to know what they're talking about.
http://www.torontosun.com/News/Columnists/Margolis_Eric/2008/03/16/50200...
The Federal Reserve is not the place where tax dollars are kept. That's the US Treasury. They are not the same. The Federal Reserve is a (quasi-)private entity, and can do as it likes. It is the central bank of the USA, but it is made up of FOR-PROFIT banks.
The entire premise of this article is wrong. If the money was coming from the US Treasury, then it would be an entire different story.
There is one really big problem with this article:
The Federal Reserve doesn't use "public loot".
It is a private bank with it's own money (created from thin air).
razant @ 147:
Do you suppose we're retarded? Of course the gop set this up. Although SNL completely missed a perfect opporturnity to expose this last night and chose the dullard road instead.
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