March 17, 2008

Now that Eliot Spitzer has been conveniently eliminated, Bernanke, Bush and Paulson can have their way with the real whores - with taxpayer funds


I'm not saying the government had Spitzer set up to get him out of the way, he made his own bed. But the timing is a bit curious, with the hammer falling just hours after Spitzer had testified to congress on the out-of-control REIC, and threw Bush under the bus for the mortgage mess.

So it's party time at Ben and Hank's place, with nobody to stop the madness. Bring in the true whores now - Bear Stearns, JPMorganChase, Lehman Brothers, Goldman Sachs their toxic-mortgage-STD-infested crew.

The $200 billion bail-out for predator banks and Spitzer charges are intimately linked

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.

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.”

"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.”

22 comments:

Anonymous said...

"I'm not saying the government had Spitzer set up"

Why not say it?

Anonymous said...

Hate to break it to you, but the Fed's balance sheet is a drop in the bucket. The Fed doesn't have anything close to the market cap to bail out the mortgage market. Fed's market cap is just south of $900 billion.. mortgage market is measured in the trillions.

The only way is to get a bill past Congress.

keith said...

because spitzer called the ho's on his own doing. If the government had sent the ho's to spitzer, then it would have been a setup

However, the question is - is the Bush Administration wiretapping every opposition politician listening for stuff to use against them?

brianbb said...

The 200B isn't free money. It's a LOAN. If they can't pay it back their stocks would effectively have to be at $0, plus the Fed would take the collateral and sell/hold it whatever.

They are supposed to be making sure that all the loans are well collateralized...ie they are worth much more than the loan. Of course, it's a little nebulous sometimes, but I don't think they'd loan any money at all on CDOs and the like.

Rom said...

Spitzer should not have resigned. He was one of the very few people willing to take on Wall Street corruption. I don't care if he got busted for prostitution (legal in NV). We're more worried about baseball players using drugs and men cheating on their wives than we are about the blatant destruction of our currency, destruction of our civil liberties and the pointless war for profit.

brianbb said...

Fed's balance sheet is as big as it wants it to be.

They could buy every FNM/FRE CMO outstanding and push the price up to par.

They'll just "credit your account". Simple as that.

Anonymous said...

Keith,

I will tell you like it is. He got set up.

Do you think he was the only doing this? Don't we know they have whore houses all over Washington?

He was just screwed and he cant fight it either. He was caught and that's that. But I think this was definetely politically motivated.

Dny

Anonymous said...

Eliot was definitely setup.

Thanks Eliot for giving a damn, when so many are corrupted by greed.

Anonymous said...

Eliot was definitely setup.

Thanks Eliot for giving a damn, when so many are corrupted by greed.

Anonymous said...

Something is rotten in New Amsterdam. Considering how the DOJ has been so politicized Spitzer being targeted wouldn't surprise me, although everyone has to admit he was an idiot. The real test will be to see what the new governor will do about this mess.

One thing is clear, the fed is more concerned about hedge funds and investment banks than the wider economy. I can't understand the justification for using taxpayer money, or the full faith and credit (such as it is) to bail out a non-commercial bank. The Fed chair taught at Princeton for crissakes, he must understand the moral hazard situation he is enabling through repeated intervention to bail out bad investment choices.

Anonymous said...

::in New Amsterdam. Considering how the DOJ has been so politicized Spitzer being targeted wouldn't surprise me

I think you said it right there, "New" Amsterdam; if Spitzer had gone to olde Amsterdam, then this would be a moral issue (with tabloid types barking) but not a legal one. You see, escort services can be busted stateside, on any occasion. Usually, the highrollers have their fun and the cops look the other way until they get too haughty (see Heidi Fleiss's story) or when it's politically expedient (see the former NY gov as others before him).

Anonymous said...

because spitzer called the ho's on his own doing. If the government had sent the ho's to spitzer, then it would have been a setup

However, the question is - is the Bush Administration wiretapping every opposition politician listening for stuff to use against them?

-------------------------------

I think the administrator is not breaking any wiretapping laws but I bet they are pursuing all legal leads and methods to the fullest.

Anonymous said...

spitzer was not setup. Come on, what d0 you think he went to the hotel for? did he think the girl he was meeting there wanted him to be her mentor? Perhaps he thought he was going there to meet with democrat party leaders to discuss being Hillary's veep?

Now, don't get me wrong. I bet there were lots of high fives going on when "they" heard about the investigation of client #9.

Anonymous said...

"because spitzer called the ho's on his own doing"

And this according to what impeccable news source?

This hoax could easily be pulled off. Someone high up in DC or wherever could have called him and said, "Eliot, we want you out of town. Here's what you're going to do. If you don't cooperate, we can't guarantee the safety of your family."

What would you do?

Google: Clinton Body Count said...

This was absolutely, positively a hit-job on the Spitzer. There is so much prostitution going on in Washington, it's truly pathetic. Barney Frank was running an underage and male prostitution ring out of his house .... and everyone knows. The only reason he's still in government is because he threatened to start naming names. While Spitzer is a complete idiot, he was definitely in somebody's bulls eye


Google the "Clinton Body Count" and see how many people tied to his tryst's have died of unusual circumstances.

If the powers that be want to keep you in power, they will. If they don't, your out.

SeattleMoose said...

Agree...a setup. The timing was "perfect".

happy homeowner in the stix said...

Please, Keith. The guy was done in by his own arrogance. He thought that he was going to get away with his little vice because he was smarter than everyone else.

If you are gonna piss off powerful people, you had better be sure to not give them any ammo.

Anonymous said...

I think the administrator is not breaking any wiretapping laws but I bet they are pursuing all legal leads and methods to the fullest.

See, it's because of comments like this that I've lost faith in the American people. This idiot still believes this Administration. I hope you're one of those Bushbots who have to lick the GOP boots for a buck. You cannot be that stupid.

Ed said...

Lemme guess Bush also set up Clinton and Marion Barry right? Keith, you're giving DailyKook a serious run as craziest blog out there.

BMW driving sex machine said...

Yahh, Eliot was soo setup by the vast right wing/wall street conspiracy he called the bank trying to remove his name from wiretransfers he made to prostitution services.

Ofcourse the fact that any financial institution in the US is legally forced to submit a SAR (suspicious activity report) to the feds when anyone attempts this, its just passes right over your thick heads like spitzer releasing a load over his hookers head.

Yahh, all one big conspiracy. You fricking morons need to take off your tin foil hats. Its constricting the blood flow to your brains.

Anonymous said...

Client, client number 9,
bringing her down aWashington line,
if the train had gone off the track
Would you have got your 5 grand back?

Anonymous said...

:Barney Frank was running an underage and male prostitution ring out of his house .... and everyone knows. The only reason he's still in government is because he threatened to start naming names.

Not really, that was Frank's so-called boyfriend and he was 19, young but not underaged.

Dude, they (the press and political opponents) thought that they had Barney Frank because they'd believed that he was a pseudo-closet homosexual but when he admitted that he 'liked men', the press immediately dropped the story. You see, in America, being openly gay causes the news to run for the door, it's licentious heterosexuality, outside of marriage, which is taboo. Since by '89, Barney Frank was an established Mass congressman, not really having to run as a freshman candidate again, he could come out of the closet and still keep his job. And realize, the world didn't want to hear about his boyfriends or their lovers' quarrels.