The blogosphere is buzzing with talk that Sarah Palin's shock resignation was to head off an embezzlement scandal.

Brad Friedman at the Brad Blog broke the story. "I've now been able to get independent information from multiple sources that all of this precedes what are said to be possible federal indictments against Palin, concerning an embezzlement scandal related to the building of Palin's house and the Wasilla Sports Complex, built during her tenure as Mayor. Both structures, it is said, feature the "same windows, same wood, same products." Federal investigators have been looking into this for some time, and indictments could be imminent, according to the Alaska sources."

The Post-Chronicle follows it up with the revelation that it might be "because of a federal indictment pending in an embezzlement scandal that allegedly involves her receiving huge financial favors from Spenard Building Supplies."

Max Blumenthal at the Daily Beast dishes up more dirt.

"The suddenness of her announcement raises the question about whether Palin resigned to avert a major scandal. One logical place to start looking is the affair that has Alaska political circles buzzing: an alleged scandal centered around a building contractor, Spenard Building Supplies, with close ties to Palin and her husband, Todd.

"Many political observers in Alaska are fixated on rumors that federal investigators have been seizing paperwork from SBS in recent months, searching for evidence that Palin and her husband Todd steered lucrative contracts to the well-connected company in exchange for gifts like the construction of their home on pristine Lake Lucille in 2002. The home was built just two months before Palin began campaigning for governor, a job which would have provided her enhanced power to grant building contracts in the wide-open state.

"SBS has close ties to the Palins. The company has not only sponsored Todd Palin's snowmobile team, according to the Village Voice's Wayne Barrett, it hired Sarah Palin to do a statewide television commercial in 2004.

"Though Todd Palin told Fox News he built his Lake Lucille home with the help of a few "buddies," according to Barrett's report, public records revealed that SBS supplied the materials for the house. While serving as mayor of Wasilla, Sarah Palin blocked an initiative that would have required the public filing of building permits-thus momentarily preventing the revelation of such suspicious information.

"Just months before Palin left city hall to campaign for governor, she awarded a contract to SBS to help build the $13 million Wasilla Sports Complex. The most expensive building project in Wasilla history, the complex cost the city an additional $1.3 million in legal fees and threw it into severe long-term debt. For SBS, however, the bloated and bungled project was a cash cow."

This stuff is political dynamite and if it's true, it leaves the GOP as a complete basket case. Let's wait and see what the mainstream media comes up with.