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Apparently, no one noticed Eliot Spitzer's article in the Washington Post ironically published the morning of one of his trysts with his $4,000 an hour hooker.  Everyone should read it if for no other reason than it is Spitzer's Last Hurrah.

There, Spitzer describes how George Bush personally contributed to the meltdown in the financial sector by interfering in the states' enforcement of anti-predatory lending laws.  Spitzer referred in the article to litigation in which he participated as the NY attorney general, one part of which was against Ameriquest.  The Ameriquest settlement is located here.

The Settlement Document details the misdeeds of Ameriquest by detailing what Ameriquest was agreeing to no longer do.  The discussion of fraudulent appraisals starts at page 22 and continues through page 29. I think the section on fraudulent appraisals is particularly important because it was through the use of these false appraisals that Ameriquest tricked tens of thousands, if not hundreds of thousands, of people into taking out loans they had no business participating in.  

In many states, including New York, when a loan officer uses a false appraisal to make a borrower think his or her property is worth more than it is and thereby make a loan so as to extract exorbitant fees, it is larceny by false pretenses.  Some of you might know this crime as theft. It is quite reasonable to conclude that Ameriquest committed tens, if not hundreds of thousands of thefts using false appraisals.  It sounds ludicrous now, but one should remember the housing bubble was in full swing and people were predisposed to think the values of their homes were increasing.  And bubbles are funny things.  We should know.  Ameriquest just nudged the bubble along, extracting thousands of dollars in fees each time.

Now, here is the kicker.  Ameriquest was owned by Roland Arnall.  Arnall was one of Bush's biggest fundraisers.  See the wiki.  What is known publicly is almost certainly dwarfed by what has been kept hidden.  After all, this is the Bush/Rove pattern - erase, burn, shred, and deny.  I also suspect this is actually what has put that pained look on Bush's face the last month or so, as he has frantically spent $400 billion of our money propping up the financial sector.  He even made Paulson work over the weekend.

Someone recently said, "Now we have two points, and two points make a line."  I forget who said that.  But here, the line points at George Bush, which brings me back to the title of this diary.

It looks from here like Bush caused the collapse of the financial sector so that his criminal friends could continue their criminal enterprises, so that he and his party could get a cut.  If this is what happened, how is this not like what the Mafia does?  If there is some other way to see this, I would like to know what it is.

Lastly, that arrogant fool Spitzer sure came down hard and fast, didn't he?  Ouch!

Update: here is the link to the WP - http://www.washingtonpost.com/...

Originally posted to PhotogHog on Fri Mar 28, 2008 at 06:37 AM PDT.

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Comment Preferences

  •  Collapse is what Bush does best (5+ / 0-)
    Recommended by:
    bink, sxwarren, spotDawa, Amor Y Risa, daliscar

    The signature of his influence is ruin.

    In a democracy, the most important office is the office of citizen.- Louis Brandeis

    by crystal eyes on Fri Mar 28, 2008 at 06:41:46 AM PDT

  •  Not on His Own (2+ / 0-)
    Recommended by:
    fly, neroden

    But, yes ...  His direction from the White House significantly contributed to the collapse in a number of ways.

    By cutting taxes for the wealthy, he created a huge pool of idle money that needed "somewhere to go," thereby making a boom scenario more likely to occur.

    Then, he had his people slash regulations that governed the way the mortgage market worked, making that market vulnerable to speculation, fraud and abuse.

    Finally, his SEC refused calls to regulate the secondary market for mortgages and to regulate the so-called "shadow banking system."

    On Bush's part, it was a combination between malice (the tax cuts), abuse (deregulation) and neglect (under-regulation of new markets).

  •  Apparently, (0+ / 0-)

    money was on Spitzer's mind that morning.  Especially money as it related to predatory practices and taking out loans.  

    "I am here because of Ashley." - Unknown Obama supporter.

    by rainmanjr on Fri Mar 28, 2008 at 06:52:34 AM PDT

  •  Link is not working n/t (0+ / 0-)

    I beg to dream and differ from the hollow lies..

    by lesliet on Fri Mar 28, 2008 at 06:53:10 AM PDT

  •  W doesn't want to hurt investment bankers (0+ / 0-)

    Not if he can help it, anyway.

    Remember, these are the same guys he's trying to give the Social Security system to.

    But does he give a shit about rampant foreclosures?

    Clearly not.

    We're pro-choice on everything! - Libertarian slogan

    by CA Libertarian on Fri Mar 28, 2008 at 06:57:01 AM PDT

  •  Bush is a tool. eom (0+ / 0-)

    I have a lifetime of experience. It took every moment of my life to get that experience too. It was hard work, believe me.

    by spotDawa on Fri Mar 28, 2008 at 07:05:23 AM PDT

  •  Well, it was Bill Clinton (0+ / 0-)

    who signed the Gramm-Leach-Bliley Act that repealed provisions of the Glass-Steagall act.

    It was an example of the deregulation movement   in Bill's "third way"

    he Gramm-Leach-Bliley Act, also known as the Gramm-Leach-Bliley Financial Services Modernization Act, Pub. L. No. 106-102, 113 Stat. 1338 (November 12, 1999), is an Act of the United States Congress which repealed the Glass-Steagall Act, opening up competition among banks, securities companies and insurance companies. The Glass-Steagall Act prohibited a bank from offering investment, commercial banking, and insurance services.

    Those who hear not the music-think the dancers mad

    by Eiron on Fri Mar 28, 2008 at 07:16:48 AM PDT

  •  No. Way more complicated. WE have to stop (1+ / 0-)
    Recommended by:
    burrow owl

    looking for easy answers.

    I will drink the Clinton Campaign Champagne 'cause Kool-aid is for kids!

    by Shhs on Fri Mar 28, 2008 at 07:27:00 AM PDT

  •  No. (0+ / 0-)

    The OCC didn't touch the state laws you mention about fraudulent valuation.

    As noted above, you're looking for easy answers.  Sometimes that's a good strategy; here it isn't.

    "[G]lobalization is...increasing the efficiency of resource allocation through stronger capital markets" - Barack Obama

    by burrow owl on Fri Mar 28, 2008 at 07:53:52 AM PDT

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