Home > American Racket. Debt Deregulation, Bubbles, Bailouts and GoldplatedLies, Uncategorized > Elliott Spitzer Taken Out For Stepping On The Wrong Toes?

Elliott Spitzer Taken Out For Stepping On The Wrong Toes?

  In the past couple of weeks we’ve done a couple of posts about the investment banking collapse of 2008. The first post looked at how the stock market is overbought and may be heading for a painful correction. It also included a video interview w/ Rolling Stone writer Matt Taibbi who asks the not so musical question “why isn’t Wall Street in jail”. Our follow up story focused on Mr. Taibbi’s new book called Griftopia about the various scams that have put us in the deep economic hole we find ourselves in today.

 In the early part of the 21st century Eliot Spitzer was a rising star and a paragon of virtue. As attorney general for New York state he took on the finacial services industry prosecuting the kinds of crimes that wold end up tanking the American economy in.Time magazine hailed him as the “sheriff of Wall Street” in a 2003 article. Five years later, after being elected govoner of New York, he would be brought down by a prostitution scandal that revealed he had paid $80,000 to an escort service over a period of several years.

 As we move into the second decade of the new century the “sheriff” is viewed by many as a disgraced hack trying to make a come back as a news analyst on CNN. Meanwhile the finacial titans he took on got bailed out by the government. For the most part they kept collecting their bonus checks and advising the government on running the economy. The firm at the center of the financial scandal Goldman Sachs is well represented in the Obama administration.

 So today we present a piece written by Greg Palast about Mr. Spitzer’s fall from grace and look at why some people were so hot to take him down.

 “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 “

 To read the entire story click here.

And here we present a clip from MSNBC’s Dylan Ratigan show from 2009 where Mr Spitzer shows how the what happened in 2008 when the banks woke up to find themselves insolvent.

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  1. March 3, 2011 at 3:56 am

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