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?
Because, ya know, 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.
- Dems vote for the bail out and they are damned by the "fiscal conservatives" as "big spenders."
- Vote against a bail out and the Dems are "do nothingers."
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.