March 11, 2008
Average American Investors Should Thank Eliot Spitzer (Brent Budowsky)
Those of us who are players in financial markets know very well that the system is rigged in favor of those at the top and against those at the bottom and in the middle.
Because of a substantial body of work over a career, the market is a little bit fairer.
Because of Eliot Spitzer, average American investors in the market are a little more protected. Those most corrupt forces in the market are a little more investigated.
The guilty are a little more prosecuted and the potentially corrupt are a little more deterred because of Eliot Spitzer.
Yes, what he did in this latest fiasco was shameful, and no doubt he will pay some price — and he should.
Yet watching the crowing and high-fiving on CNBC and from some on Wall Street, they are crowing and high-fiving not because they care about average investors, but because they have largely opposed reform and protection for average investors, and prosecutions of those who rip off average investors.
So: Let’s boo for his involvement with prostitution but give him a standing ovation for his defense of honest markets, his support for honorable investing, his advocacy of greater disclosure, and his prosecution of crooks.
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Banks do not report to the IRS or any government agency transactions under $10,000; why would a $5,000 check or transaction get reported to the FBI?
I smell a dead Rat.
Comment by Donaldd — March 11, 2008 @ 11:42 am
Donaldd, it was the NSA electronic surveillance that got him. Bush's goal all along, as I'm sure you'll agree, was to get as many Democrats as possible. As you also know, the terrorist thing is just an excuse. Gotta stay vigilant Donald, can't let the forces of evil just randomly catch honorable men like Spitzer.
Comment by Igor R. — March 11, 2008 @ 12:39 pm
I smell a dead rat also! Our elected officials are being watched by this Administration, put quite simply.
I also feel sympathy for The Gov. and his family. There are so many other important issues and we need to move on.
I also want to thank the Governor for all the work he did trying to clean up, filthy WALLSTREET! It is disgusting that they are laughing at this set up by our Government of the Governor!
Comment by diane b — March 11, 2008 @ 12:49 pm
The fix was in. The NYT headline: "Spitzer Is Linked to Prostitution Ring" was a masterful job of dishonesty.
After I sent a nasty-gram to the public editor, they changed it to "Spitzer Is Linked to a Sex Ring as Client". I doubt that my letter was the motivating factor, but I can't be the only one in the country who hates dishonest reporting.
The manner which they changed it makes it pretty obvious that someone really liked the "Sex Ring" concept and it was really hard to persuade them that the headline was too sleazy for a distinguished rag like the NYT.
Comment by GM Pierce — March 11, 2008 @ 12:54 pm
This wonderful, passionate man would not let the Constitution or the law prevent him from doing what felt right. Who could be critical of his disregard of the second amendment while trying to get the evil gun manufacturers? Of course Eliot knew that the founding fathers were drunk when they wrote it, it's so damn confusing. And while people may or may not have the right to bear arm, there is nothing in the Constitution about anyone's right to make them. It was so wonderful to watch him go after Smith and Wesson who clearly made the guns defective because they worked! It takes a great legal mind for this to make sense.
And it was so wonderful how he got Hank Greenberg to resign from AIG under threats of indictment for the company, and look Hank was never indicted himself. Nobody's hurt, and everybody wins! Eliot, you were a genius!
And how he found the important legal underpinnings for the illegals to have driver licenses. He was as inventive as he was courageous! And how he inventively created new sources of revenue by finding new areas to slap with the sales tax!
But the most admirable thing is he did that purely out of the goodness of his big heart. Never cared about advancement, was never vicious or ideological. Yes, a giant was brought down yesterday, a gentle giant who only wanted a better world for us all.
Comment by Igor R. — March 11, 2008 @ 1:14 pm
It would be interesting to know who the federal prosecutor is and see how Karl Rove ranked him/her during the prosecutor purge.
Comment by Lester — March 11, 2008 @ 1:17 pm
This Spitzer mess is the price Democrats (and ultimately us American citizens) pay for the double standards of our criminal justice system.
Why should something that is perfectly legal in Nevada and Las Vegas, be a career-ending CRIME anywhere else in America?
Everyone knows that the wealthy consume cocaine by the ounce at their high-roller parties, while a gram will get you busted, restrained, humiliated, tried, convicted, and sentenced on America's streets. (Enron execs, just one or two people removed from the 41st and 43rd US presidents, held some legendary 'snow' parties in Houston, according to many press reports.)
How many prison inmates in America's prisons were sent there for simple possession of marijuana or cocaine… some reportedly with long prison terms. (Witness the Louisiana DA who prosecuted the Jena 6 who warned students at an auditorium meeting that he could "ruin your lives with the stroke of a pen.")
Brent has a good point about Spitzer's service to the public community reigning in stock frauds. IF you want a government official to go, hammer and tongs, against wealthy market fraudsters, you are going to need an alpha male (or female) leader. Animal Planet's "Chimp Eden" documentary explains that violence among chimp males is normal, and that in wild troupes only the alpha male has a right to breed with females. (Believe it or not, this control of breeding rights is the foundation of our human "moral values," which is to say any individual's place in the social hierarchy, and how much material wealth that position entitles that person to.)
The American public wants deferential public servants, men and women who know their place in the government and don't step out of line… to work like fiends to bring to justice entrenched, connected, and wealthy stock-market swindlers? We reward our entertainment stars, sports heroes, and financial titans with unlimited access to babes in bikinis, but on the really important stuff, getting us health-care, protecting our pensions, protecting our savings, protecting us from criminals, we expect our public servants to be milktoast, obedient do-gooders? Good luck!
Comment by LjBK — March 11, 2008 @ 1:50 pm
I won't pass judgment on Gov. Spitzer, unless I know who Clients 1-8 and 10-99 (and beyond) are — along with their occupations, home addresses, and photos of their wives.
It will be not only interesting, but important, to see who else was involved.
I also won't take seriously any "news" account that fails to mention that Karl Rove and George Bush have a male whore free access to the White House and choice seating in the press room, seating that was denied to Helen Thomas.
Comment by Nichomachus — March 11, 2008 @ 1:52 pm
Here come the liberal crybabies. WAAA, it's a double standard. WAAAAAA, it's Bush's fault.
Comment by John Simmons — March 11, 2008 @ 3:11 pm
Gosh - an odd prosecution by one of the GOP US Prosecutors who wasn't fired!
A repeat of the Alabama prosecution farce!
Comment by Brett Greisen — March 11, 2008 @ 4:22 pm
The transference between accounts was required by law. Not a GOP law either. Isn't it funny that Spitzer, a self acknowledged genius, is caught with hookers, will be removed from office or impeached but the George Bush, who you all claim is a fool and you say has broken the law, will stay in office?
Comment by OldSarg — March 11, 2008 @ 8:51 pm
Brent, while you're at it, why not talk about the securities swindle of the century, namely the $200 BILLION dollar swindle of the American taxpayers whose "trustees" have agreed to invest in the junk mortgage-backed securities that all the major banks are holding.
How come the "market forces" guys say don't rescue the little guys who got sold a dubious bill of goods by the mortgage bamking industry, let the markets do there thing.
But when it comes to those responsible thru their poor judgement or worse, their greed, we don't need to have the market forces operate here; we'll just screw the little guy again! We'll let him take the loss on this pile of crap securities, too.
And nobody raises an eyebrow!
Comment by Smilinjack — March 11, 2008 @ 10:57 pm
Some 35 years ago, Canadian Prime Minister Pierre Trudeau stated famously that, “The state has no place in the bedrooms of the nation.” I might be wrong but I think the last real sex scandal we had up here in Ottawa was in the 1960’s, and involved a Soviet spy named Gerda.
I don’t think Canadian politicians are any better behaved than those American when it comes to adultery and prostitution. But I do believe that Canadian media are less inclined to revel in revealing their private lives.
The Monica Lewinsky affair was classic. Impeach a president for playing cute with the definition of “sexual relations.” Lie about going to war that has cost a million lives or so, several trillion dollars and the country’s good name? No problem.
I don’t know why the FBI was investigating this prostitution ring. I don’t know how the information was leaked to the media. But a man’s life and reputation has been ruined. I feel truly sad for his wife and family.
Was Mr. Spitzer a deceitful adulterer? Yes. Was this affecting his performance on the job? I don’t think so. Even if his private life was deemed to leave him open to the possibility of being bribed, all the FBI had to do was tell him that it was on to him.
France is famous for its acceptance of politicians and others who lead “double lives.” Many do so openly. In much of the world, polygamy is an accepted way of life. I don’t condone it but, through their inaction, our governments essentially do. So I wonder about the double standard.
I also worry about police power. We are getting watched, searched, sniffed and reported like never before, not just when we fly or cross borders, but when we commute, attend public events and buildings or even stay home and log on to the Internet or use any kind of phone. Police and security agencies have seized on our false fears of crime and terrorism to grab more money and power (over us). They operate in increasing secrecy and have hacked away at age-old accountability structures such as the need for warrants and external review mechanisms.
Demands to show ID and random searches are on the rise. So are fishing expeditions and the use of entrapment, essentially state-sponsored crimes. Ill-gotten evidence? Sure.
Privacy International recently issued a color-coded report on how well countries protected the privacy of their citizens. The United States, Britain, Russia and China were in the black, meaning the worst rating you could get.
The United States, the land of the free, is the only “Western” nation in the world without comprehensive privacy legislation. Other countries have privacy commissioners, with wide-ranging powers to investigate and resolve privacy complaints.
I suspect a privacy complaint by Mr. Spitzer would be well-founded. And at least the FBI and the media would be guilty parties.
Comment by Richard Sharp — March 12, 2008 @ 10:24 am
Well said Richard! What has the US of A come to?!! One can be impeached for seeking hetro sex BUT it's OK to find homos in public bathrooms, lies about invading Iraq, ream Americans taxpayer with no bid contracts, destroy evidence of WH emails, ignore PDB of a possible attack on 9-11, be friends with Bin Ladens and the Saudis, the real terrorists, illegal wire taps, Provide fake stimulus package and then take it back by RAISING everything from food to gas prices and not get impeached. It's NOT a democracy anymore! The NEO CONS are in control of the USA and they're going to destroy everyone but their OWN $$$ buddies!
Comment by MC — March 12, 2008 @ 2:31 pm
Surely you jest?I was a big admirer of Spitzer and I am a registered stock represetative BUT just the thought of him prosecuitng prositution rings while paying one is so repulsive in the realm of hypocrisy it defies beleif.No one has done more to derail his own career that was so rich in a very long time.If Mr Spitzer likes prostitute so well I am sure there are a few at Attica State Correctional Facility that would be happy to bed down with him-FREE OF CHARGE.
Sorry he deserves no better than a decade of hypocrisy has earned him.
Comment by Linda M — March 12, 2008 @ 5:48 pm
Hey MC have you heard the news?? The Dems are in charge and now gas is at $110 a barrel, the dollar is worthless, the economy generally sucks. But I guess that's still the Republicans' fault, huh?
Comment by John Simmons — March 12, 2008 @ 6:22 pm
Not so Sharp, Richard. To set the record straight, Clinton was impeached for lying under oath about his relationship with Monica in the context of Paul Jones sexual harassment case. The purpose of the deposition was to determine if Monica received any favors for spending time under the oval office desk (she did get a paying job at Pentagon).
Comment by Misha F — March 13, 2008 @ 12:50 am
Following Brent's recommendation as a player in financial markets, I'd like to say: "Thank you Eliot Spitzer!"
Comment by Misha F — March 13, 2008 @ 12:53 am
k. Prosecuting pimps, whores and Johns might well appear to be a conflict of interest. He could have "recused" himself, no?
I just have this thing about individual privacy, and the need for authorities to think a bit more before they ruin lives.
Even the lives of creeps.
BTW, most of the comments I've received concerning this piece have been from women, who place fidelity above all, and who are especially incensed by the age differential between the accused and his consensual partner.
Comment by Richard Sharp — March 13, 2008 @ 4:44 pm
Budowsky says Spitzer should get a standing ovation for his professional life, a boo for his personal. I disagree. Budowsky ignores that for 7 years Spitzer included in his work days and nights efforts to pay hookers extra money if they'd have unprotected sex with him. Give a standing "O" to someone who for 7 years paid extra to expose his wife to the possibility of contracting HIV/AIDS? A "standing O" to someone who sent the message to his two daughters; daughters and women everywhere that a woman's health is unimportant (his wife's and the health of all he bedded in 7 yars)and can be destroyed as long as the man is enjoying himself? Budowsky's call for a "standing O" sends an equally perverse message to women and their sons–that a as long as a man has professional accomplishments he deserves regard–no matter how he treats other human beings. For everyone out there with daughters, neices, and sons…for their sake and your own, pls don't buy Budowksy's reasoning.
Comment by J Jensen — March 14, 2008 @ 11:09 am
k. I didn't mean to disparage women in any way. But I liked what Eric Margolis wrote about this, that "if a man isn't thinking about sex, his mind his wandering."
It's all this futile bellowing about the personal lives of detractors to the status quo that bothers me. Dissent is free, n'est-ce pas?
Comment by Richard Sharp — March 24, 2008 @ 3:26 pm