They just don’t get it. One day the FDIC appears to take a stand–8 hours later, they’re financing securities FRAUD. What happened here? Did Larry Summers bitch slap Sheila Bair like he did Brooksley Born in ’98?

Did Geithner come in and say, “let’s make PPIP more attractive to the criminal element by pimping it out without government imposed limits.”

We were just told last week by Neil Barofsky, and quite convincingly due to mounting evidence, that this ridiculous public-private partnership scheme of Geithner’s involves “securities that are backed with assets that we know were likely riddled with fraud.”

How on earth could we possibly wake up this morning and see a Bloomberg article titled:

FDIC May Let Investors Buy Toxic Assets Without Treasury Stake

Now …  I’m all ears as to other interpretations of  “toxic assets”. I mean, are they toxic because they present a biochemical or radiactive health hazard? Hmmmm…I don’t think so. They are “toxic” because they are inherantly worthless, fraudulently contrived and fraudulently leveraged in order to deceive investors that they would be profitable to own.

If the FDIC was doing its job, then it would already have separated out the “fair to good” risk assets from the “beyond hopelessly bad”, and the latter would simply be worthless paper, with no hope of gaining value -  debts that will never be repaid, based on incomes that don’t exist and obligations which will never be met, as well as default events and predicted values which have caused these so called “assets” to collapse into crippling liabilities, which is what they really are on bank balance sheets today. These assets would be, without further qualification, the “toxic assets” in question.

And the FDIC, instead of burning this worthless paper, wants to polish these turds and pawn them off to the public ”without incentive conditionalities” – to what end? To actually foster the continued leveraging of PONZI type assets for fraudulent profit? And they are doing this in the name of cleaning up the sacred “systemically important” bank balance sheets?

Comrade, can you spare a little bribe money?

Time to go back to bed … and hope that when I wake up from this nightmare that I actually wake up in the America that Alexander Hamilton and Abraham Lincoln dedicated their lives to.

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