The story that shocked and rocked New York state yesterday was the stuff of Hollywood scandal, as reported by some celebrity rag. Only it wasn’t some actor getting busted for drugs or, in this case, caught with a prostitute, and it wasn’t The Star doing the reporting. It was the governor of New York, Eliot Spitzer, and it was The New York Times reporting that the emperor had no clothes — literally.

If Spitzer was indeed the Client-9 caught on federal wiretaps arranging for and using the services of a prostitute through a prostitution ring — and he hasn’t denied it — then he should resign. It’s not only the decent and honorable thing, but the only way to keep New York state government from becoming a total circus for the foreseeable future. Spitzer, with his confrontational style, has created a lot of turmoil in his 14 months as governor — not all of it bad, or at least badly motivated. But nothing like this, and this is nothing but bad. He has lost all his credibility.

Moving from the political to the personal, resignation may be the only way for Spitzer to stay out of jail or keep his law license (a felony means automatic disbarment). As with former Comptroller Alan Hevesi, prosecutors would likely let Spitzer off with a misdemeanor or less if he agrees to resign. (It should be noted that he has yet to be charged with anything.)

Normally johns aren’t prosecuted; those who run the prostitution ring are, and perhaps the hookers. But this is different. Spitzer is not only a lawyer, he was attorney general of New York, and in that position broke up several prostitution rings (expressing great revulsion while doing so). He knew that he was contributing to an illegal operation, and one that in many cases involves drugs and organized crime. This was no romantic fling, but a commercial transaction that Spitzer planned well in advance, negotiated and paid for himself — and not just once, according to the affidavit signed by an FBI agent in the criminal complaint. To read that document, with all its tawdriness and sleaziness, is embarrassing.

What makes it all so shocking is Spitzer’s image as a moralist and reformer. This was not Bill Clinton we are talking about, a man who had well-known trouble controlling his various appetites. Spitzer was the lean and hungry sheriff of Wall Street, a picture of rectitude. Turns out he was like Bill after all, with a need to take risks and live dangerously, a seamy, self-destructive side.

The word “tragedy” is often misused, to refer to regular occurrences like death or things that are merely misfortunes. But Spitzer fits Aristotle’s definition of the classic tragic hero: someone with noble stature and the promise of greatness who causes his own downfall. Greek tragedy also contained the concept of hubris, which, in its modern usage means arrogance and self-pride, and applies here as well.

It remains to be seen how this will affect state government and the fortunes of New York’s two main political parties. If Spitzer does resign, he will be replaced by Lt. Gov. David Paterson, a smart, well-respected former Senate minority leader and reformer, who is as even-tempered and non-confrontational as Spitzer is mercurial and combative. He may be the best person for the job at this time, which, fiscally at least, was already a tough one for New York state.

Now it just got tougher, and definitely sadder. Although there are some who are undoubtedly gloating over Spitzer’s downfall, most New Yorkers wanted him to succeed. Now they should just want him gone.