Tuesday, March 11, 2008

Client 9

While the media falls over themselves for the sex angle in the Spitzer case, the real story is being ignored. It makes good copy to report the Governor is going down in flames for some paid fucking, it’s even better on the hypocrisy meter since he’s busted prostitution rings. It’s not good copy to get into the financial disaster that awaits us and Spitzer was hip deep in brokering deals to prop up the bond insurers market.

Ambac, one of the AAA rated bond insurers on the verge of losing it’s rating and being a huge domino in the already falling world economy, was ‘saved’ last week after more than a billion USD were pumped into it in a deal headed by Spitzer. Ambac’s stock from yesterday looks like fingerprints at the scene of a crime. A spike in price shortly after the bell rang followed by a huge drop, before news of the Spitzer fuck-fest hit the street. Ambac went down 23% before the bell rang. Spitzer was brokering more deals in an attempt to save the bond insurers.

What happens when these bond insurers go tits up? It’ll be worse than the ongoing sub-prime crisis. Those insurers were there to back the banks for losses from a variety of disasters all of which are looming larger on a daily basis. What else ties in with these insurers? Everything under the sun from hedge funds to 401k investment portfolios, who have loads of money sunk into them for ‘security’. They are among the items traded in portfolios for these kinds of investments. Look at your 401k plan and look for the plans that focus on ‘safe’ investments, there you will find them lumped in with muni bonds, T-bills and other low interest ‘safe’ investments.

When the dust finally settles, Client #9 may be the side bar note that reminds us all where it really picked up steam. Time is a major liability in this economic landscape and we just lost a bunch of it with Spitzer’s bust. The powers that would benefit from a larger meltdown of the financial system have just gained time on their side with his bust.

So I can’t help but wonder…did Eliot Spitzer’s trail of Wall Street blood lead to this or did he lose his bona fides with a certain group of players because he decided to play a different game? Did he lose his usefulness to a group of people or did he become a threat to them? Of course the Feds say they were alerted to Spitzer as an ancillary target stemming from an investigation into large sums of cash being moved. Of course they are going to tell us that. All I can say is that I am sure the NSA was having a ball peering into his voice and data stream for quite some time.

The IC is linking everything about us into neatly packaged containers in their databases. Public officials have got to be targets of their monitoring simply because they are keeping tabs on their own players. They know what the weaknesses and strengths are for their own people. I have not doubt that sitting somewhere, on some server, in Ft. Meade is a matrix which the IC community can run and see what methods they can use to force a person to toe the line, and what method they can use to remove one of their people.

I think Spitzer’s downfall wasn’t his love of hookers…it was some agent or DBA within the Intelligence Community.

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