Eliot Knew Too Much
Back in February 2008, Eliot Spitzer wrote an op-ed piece for the Washington Post. About a month later Spitzer was forced to resign as Governor of New York. I wonder if the two are related?
The title of the op-ed was “Predatory Lender’s Partner in Crime” and that partner happened to be the Bush Administration. Imagine that!
It seems several attorneys general, including Spitzer at the time, noticed a pattern developing that was putting consumers at risk. It was the sub-prime mortgage mess and even then it was obvious to anyone with two eyes and two brain cells to rub together that this wasn’t going to end well.
So Spitzer and others banded together to either pass laws against predatory lending or make agreements with subprime lenders who were involved in predatory lending.
What did the Bush administration do in response? Did it reverse course and decide to take action to halt this burgeoning scourge? As Americans are now painfully aware, with hundreds of thousands of homeowners facing foreclosure and our markets reeling, the answer is a resounding no.
Not only did the Bush administration do nothing to protect consumers, it embarked on an aggressive and unprecedented campaign to prevent states from protecting their residents from the very problems to which the federal government was turning a blind eye.
Keep this in mind all week while you hear Paulson and the rest of the White House bandits trying to convince you the world is coming to an end.
[h/t no fish, no nuts]