With the news today, reported by The Observer, that Larry Silverstein has begun legal proceedings against the Port Authority to end the gridlock at Ground Zero, as well as the developments two weeks prior at Atlantic Yards, it seems obvious to us what's going on here. Having witnessed the financial titans across town receive hundreds of billions of dollars in bailout money, these developers now want theirs. Granted, so did Larry Flint and the porn industry, but the comparison bears consideration. To begin with, the market has failed for both finance and real estate--to say nothing of every other industry--leaving "free market" options closed. Where the bankers have turned to the Treasury and the federal government, Silverstein and Bruce Ratner, in one form or another, have turned to local pols. At Ground Zero, Silverstein is having difficulty finding financing for Towers 2 and 3, so he wants the Port Authority to provide it, or at least back it, on those projects. The story at Atlantic Yards has been much the same, with Ratner unable to afford the full amount for the Vanderbilt Yards nor go through a complete public review process for a new general project plan to ensure there is time to qualify for already dubious tax-exempt bonds. In both cases, public agencies that are already hard up for cash have been asked to foot the bill or undersign considerable amounts of risk to ensure projects with uncertain futures go forward. In the case of Atlantic Yards, the MTA and ESDC have already rolled over. It remains to be seen whether the Port Authority will cave to the abiding political and now legal pressures surrounding the Ground Zero deal. It would not be surprising if the authority did, though, given the examples set in Brooklyn and Washington.