Now I thought the timing of the Spitzer revelations and Bernanke's bank bail-out using taxpayer money were suspiciously linked, I just didn't know how...
Eliot's Mess --The $200 billion bail-out for predator banks and Spitzer charges are intimately linked By Greg Palast 14 Mar 2008:
While New York Governor Eliot Spitzer was paying an ‘escort’ $4,300in 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.
Information Clearing House has the article.