Josh Marshall sums up my own reaction:
I must confess that I never cease to be amazed by stuff like this. We don't know the precise details yet of this 'prostitution ring involvement' on the part of the Gov. Spitzer (D). But how exactly is it that someone who makes it his business to bust the chops of big wall street titans uses prostitutes? TPM HQ is in Chelsea. And I'm expecting the streets to be deluged at any moment now by joyously rioting stock brokers coming up from Wall Street. We do know that financial industry honchos all have big 'security' offices and have tons of PIs who work for them. I'm frankly shocked they didn't smoke him out before this.
My worry is that they did "smoke him out before this" and cheerfully made him pay who knows how in terms of governance.