digby: Gates is lucky he didn't get roughed up or tazed

TalkLeft: Cheney wanted to use the Military to make U.S. terrror arrests

Mugsy’s Rap Sheet: A special place in hell for healthcare reform opponents

Raw Story: Spitzer: Federal Reserve is 'a Ponzi scheme, an inside job'

Hysterical Raisins: What Tom Coburn does when he's not birthin' John Ensign's babies

From the Left: Carrie Prejean opened the Del Mar horse racing season with a song

Via Skimble, a most interesting theory:

I have yet to see this reported anywhere, but an anonymous commenter named trademonster on an investment forum said this (notice the dates):

01-09-06 06:49 AM

I've heard that SEC is going to shut down Madoff financial and all of their hedge funds for SEC violations. Can anyone confirm this?

And this:

01-14-06 02:52 PM

I actually got some update and found out that it's Spitzer's office doing the investigation not SEC. But I don't know what the scope of the investigation is.

Suddenly Spitzer's dalliances with a hooker don't seem quite as fundmentally important to the financial health of this country.

We need people who understand the system to police it. No matter how sanctimonious or egomaniacal you may find him, Spitzer understands the financial system. If these posts are true, somebody in power was more interested in the the details of Eliot Spitzer's transactions than Bernard L. Madoff's. They were obviously more interested in killing the watchdog than in catching the billionaire burglar.

And via Corrente, something even more interesting from Michael Isikoff's Newsweek story about the FISA whistleblower:

[Under the secret and illegal "Stellar Wind" program of domestic warrantless surveillance,] NSA was also able to access, for the first time, massive volumes of personal financial records—such as credit-card transactions, wire transfers and bank withdrawals—that were being reported to the Treasury Department by financial institutions. These included millions of "suspicious-activity reports," or SARS, according to two former Treasury officials who declined to be identified talking about sensitive programs. (It was one such report that tipped FBI agents to former New York governor Eliot Spitzer's use of prostitutes.) These records were fed into NSA supercomputers for the purpose of "data mining"—looking for links or patterns that might (or might not) suggest terrorist activity.

Lambert asks an important question: How did the suspicious activity report on Spitzer's financial transaction get from the NSA to the FBI?

He also notes the convenient timing, because Spitzer at the time was looking into the monoline insurance companies - another important piece of the Wall St. crash.

Was the Bush administration using illegally obtained information to take down political enemies? Oh, I think it's a safe bet. And do you suppose they were deliberately trying to keep Spitzer from exposing extensive Wall St. fraud?

What do you think?

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This morning on CBS' Sunday Morning Ben Stein gave his take on the Eliot Spitzer scandal and his thoughts may surprise you. I'm no fan of Stein, but I think he may have made some valid points. As with many political scandals involving sex, it's the naughtiness that gets the coverage and many important issues are often overlooked. As Stein puts it, it sets a dangerous precedent when a handful of appointed officials brings down elected officials, seriously impacting the will of the voters.

"...However, in Governor Spitzer's case he got humiliated, disgraced and then the voters lost the guy they voted for. It is deeply scary to me that a few employees of the federal executive branch can start a train rolling that has such immense effects on the electoral process. Basically a few career civil servants have nullified the will of the voters of the Empire state, over something clearly wrong, I don't doubt that, but it's not a political crime, not treason, not terrorism..."

What do you think? Does he have a valid point?

"The Eliot Spitzer Story" goes Bollywood, Act III: the musical finale, dancing with Barbara Boxer at the DNC Superdelegate Floorshow in Denver. Acts One and Two are here. Open Thread Below.

The Pump Handle: It seems that the EPA has failed to fulfill its mandate under the Clean Air Act. So they decided to change the Act, magically transforming a failure into "success."

Majikthise: Feds probe Spitzer's records back to 1999. I'm thinking Spitzer was probably avoiding a reporting requirement to his wife and daughters, not the IRS.

James Wolcott: Beware of white men bearing gifts

HyerStandard and Cajun boy in the City look at local politics. Average Bro chimes in...

Blender: 20 biggest record company screwups of all time

Blue Gal: Little help...

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Houston Chronicle:

CNN said it shouldn't have used a former U.S. attorney who quit his job after allegedly biting a stripper as an analyst about New York Gov. Eliot Spitzer's prostitution scandal.

No mention of Kendall Coffey's past was made when anchor Tony Harris interviewed him Tuesday on the legal questions surrounding Spitzer's case. Coffey quit his job in May 1996 after being accused of biting a topless dancer on the arm during a visit to an adult club after losing a big drug case.

Coffey talked on CNN about what kind of charges the New York governor could face. Spitzer is accused of having a high-priced call girl visit his hotel room during a visit to Washington last month.

While Coffey's past is known to CNN's booking department, it wasn't to the person who set up Harris' segment. CNN spokesman Nigel Pritchard blamed a "miscommunication."

"Coffey has been a guest on CNN in the past but was probably not the right one for this story," Pritchard said.

Oopsie! It's a little like having Bill "Phone sex with a loofah" O'Reilly lecture you about moral rectitude.

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A surprise to no one, Eliot Spitzer, wife Silda at his side, resigned from his position as Governor of New York. Lt. Governor David Paterson will replace Spitzer and be the first African American and the first legally blind governor in New York state history. While I cannot condone what brought Spitzer to this point, I do have to give him credit for this statement:

"I have demanded that people – regardless of their position or power -- take responsibility for their conduct. I can and will ask no less from myself"

It's that simple. CREW asks when David Vitter will take similar measures.

Maybe because I've been following the Don Siegelman case closely, but when I heard about Elliot Spitzer's pending indictment, something just didn't past the smell test. While he's admitted to involvement with a prostitution ring and I'm by no means absolving him or trying to diminish the charges, there are more than a few unresolved aspects of this that keep me from calling for his resignation.

Jane Hamsher has summed up these little niggling questions very well:

1. Why would the bank tell the IRS and not Spitzer himself if there was a suspicious transfer? Spitzer is a longtime client, a rich guy and the governor. We're talking thousands of dollars here, not millions. It doesn't make a whole lot of sense that they spotted a "suspicious transfer" made by the governor, and that this is how things began. It's possible it was just ordinary paperwork the bank had to file with the government whenever some particular flag was raised, but if that's the case, why did the DoJ go to DefCon 3?

2. What is a USA doing prosecuting a prostitution case? This isn't normally what the feds spend their time with.

3. Mike Garcia is a Chertoff crony. Sources familiar with the investigation say that he sent a prosecution memo to DC two months ago asking for authority to indict a public figure (Spitzer). Which means they had their case made long before the wire tap of February 13. Why did they then include this line from that conversation in the complaint?

LEWIS continued that from what she had been told "he" (believed to be a reference to Client-9) "would ask you to do things that, like, you might not think were safe -- you know -- I mean that...very basic things...."Kristen" responded: "I have a way of dealing with that...I'd be like listen dude, you really want the sex?...You know what I mean."

This salacious detail does not seem like it's necessary to make their case, and appears to be added for no other purpose than to destroy Spitzer's career.

Scott Horton (who covers the Siegelman case extensively) and Digby have similar questions, while Glenn Greenwald notes the double standard between the breathless media coverage of Spitzer's scandal and David Vitter. And Will Bunch looks at the incredible history of the Mann act.