http://www.washingtonpost.com/wp-dyn/content/article/2008/02/13/AR2008021302783.html?nav=hcmoduleThe above WP article was written by Gov. Spitzer and published Feb. 14, 2008. It's no l;ove letter. Was Spitzer threatening to expose the Bush administration's plans to use public funds to bail out the predatory lenders?
The call girl scandal was leaked Monday, 3/11 and served to discredit Spitzer and provide cover for the Fed. A Fed bail-out plan was announced on Tuesday. It was well received in the US markets, but surprisingly, not overseas where they may have smelled a rat. Today that plan was used to guarantee J.P. Morgan's loans to a nearly bankrupt Bear Sterns. JP Morgan has nothing to lose. If Bear Sterns go under, it's you and I who will repay the loans.
If we survive as a nation, may our next President understand the concept of risks vs. rewards and act accordingly.