AP: Paladino Overtakes Lazio

The Associated Press calls it for Carl Paladino, which makes it easy to write the "tea party victory" storyline, although the relationship between the upstate businessman and economically conservative grassroots organization is not that simple.

Paladino seems to have ridden voter anger and tapped into their distrust of anything associated with the professional political establishment.

The immediate impact is one more giant headache for the New York State Republican Party, and the New York State Conservative Party. Both opposed Paladino in favor of Lazio. Paladino set up a rival party to the Conservative Party, called the Taxpayer Party.

Paladino expressed nothing but hostility for the Republican Party and its leadership.

One thing to watch: Will Republicans running in races around New York align themselves with him -- as some have -- or will some flip to Democratic candidate Andrew Cuomo, who has been running on a moderate Democratic agenda (some would say "Republican-esque").