Spitzer–Mortgage Industry Connection

Sad Spitz
Photo: Getty Images

Amid all the vengeful glee on Wall Street, the Ashleymania, and the coverage that has accompanied Spitzer’s fall, one aspect of the story has been underexplored, according to journalist Greg Palast: Could the Lonesome Gov’s fall have had something to do with the Fed's $200 billion bailout of the subprime-mortgage industry, which Spitzer conspicuously opposed and which coincidentally occurred on the same day as his resignation? It was a federal investigation which uncovered Spitzer, Palast points out, and his outing could be seen as unusual.

Senator David Vitter, Republican of Louisiana, paid Washington DC prostitutes to put him in diapers (ewww!), yet the Senator was not exposed by the US prosecutors busting the pimp-ring that pampered him. Naming and shaming and ruining Spitzer — rarely done in these cases — was made at the ‘discretion’ of Bush’s Justice Department.


Palast, a cult hero in underground journalism circles (he’s the winner of six “Project Censored” awards), doesn’t really unload any evidence as much as speculate at sinister motives, but it's interesting, and better than watching Ashley’s maddeningly chaste dance moves on some scrub’s cell-phone camera. —Josh Ozersky

Eliot’s Mess [Greg Palast]
Predatory Lenders' Partner in Crime [WP]