Spitzer, sex and subprime.

I think that Eliot Spitzer's downfall was politically motivated. If it wasn't it sure looks suspiciously like it was.

For those who don't know, Eliot Spitzer resigned as the governor of New York because it was revealed that he had sex with a prostitute. He was found out through a supposedly suspicious money transaction. He had transferred something like $15,000 from one bank account to another in order that he could make secret payments to an escort agency. This movement of money looked suspicious to the banks, so they reported it to the US Treasury. The reason it was reported is because after 9/11 it became mandatory to report such movement of money, because such transfers might be for financing terrorism. It was also thought that Spitzer might be laundering money or that he was being blackmailed. (I think that last explanation was a cover, to legitimize the government's monitoring of him, as though it was trying to protect him.)

Spitzer met the prostitute in a Washington hotel on Feb. 13th. By coincidence an article by him appeared in the editorial pages of the Washington Post on Feb. 14th entitled "Predatory Lenders' Partner in Crime" It outlined how the Bush administration had enabled the "subprime" debacle. Perhaps the excuse he used to go to Washington was to submit his article to the Post.

His article stated that Bush and his administration were partially and criminally responsible for the financial mess that the US was finding itself in due to subprime leading and the housing bubble that followed. He also charged that the Bush administration looked the other way when it was known that lenders and bankers were making predatory mortgage loans to unsuspecting borrower. The loans that were been made were called teaser loans where a loan would be made at a ridiculous low interest rate and then jacked-up to unaffordable level at renewal time. Spitzer, as New York's attorney general, along with other state attorney generals, tried to implement laws that would protect consumers from this blatant, fraudulent practice. However, the Bush administration used its federal powers to block the enactment of suchlaws that would stop this predatory lending.

The reason why Bush&Co blocked the passage of legislation to stop such questionable loans was because it might stop the realization of one of its pet projects. That project was the expansion of America’s "ownership society". Cheap loans would enable the poorest of people to afford a home and buy into the American dream. If Spitzer and his colleges had their way, of stopping such loans, he could ruin the chances of Bush realizing his dream. Spitzer actions could also endanger the unfettered ways of the market place that Bush&Co. worshipped so much.

My feeling is that someone in the administration wanted to pin something on Spitzer because of his efforts to derail the administration dream of expanding America’s ownership society through cheap loans. Stopping such a practice would also affect the banking industry that was aligned with Bush. The banking industry profited handsomely from these types of loans. No, I think that someone deliberately wanted to pin something on Spitzer because of the trouble he had been causing Bush&Co and its associates on Wall Street who had profited so much from these loans. Spitzer was viewed as a pest and had to be stamped out.

When one thinks about it the money transferred by Spitzer from one bank to another wasn't that large and may have otherwise gone unnoticed. As Alan Dershowitz, the Harvard law professor and one time teacher of Spitzer, pointed out to The Times of London, "The movement of the amounts of cash required to pay prostitutes, even high-priced prostitutes over a long period of time, does not commonly generate a full-scale investigation.” The Times added, "Others on Wall Street were wondering whether Spitzer’s financial dealings had been singled out for scrutiny as revenge for his past prosecutions." Spitzer over the years had prosecuted and won against a number of Wall Street financiers.

There are several theories as to why Spitzer got himself into the sexual mess he did. One is that he got so involved in the prostitute business when he prosecuted it as New York's attorney general that he got ensnared in it. He got caught in its vortex. Another explanation is that his arrogance got the better of him, believing that he, as a 'captain of the universe’, was above the law and couldn’t be caught. Spitzer was also a powerful politician. It has been theorized that some powerful men feel so guilty about wielding so much power that they feel the need to be subservient and dominated. With a prostitute they could fulfill that need.

Another theory is about Spitzer being an 'alpha male'. I tend to agree more with this one. The theory goes that alpha males are so work and career oriented that that they are incapable of intimacy. This lack of intimacy hinders and damages their sexual relation with their partner because they avoid and shun closeness. Nevertheless, sex in such a person is still desirable, but with a prostitute it can be had without being intimate.

At first blush the crime committed by Spitzer, if it was a crime, is quite off-putting and serious. But in comparison, his crime is no match to the crimes Bush has perpetrated against the American people, from lying to them about Iraq, to administrative corruption, to his allowing and enabling the fleecing of America.