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FDIC: Let's Sell Some Garbage Bonds With Fictitious AAA Ratings

One could speculate on how Ms. Bair sabotaged Mr. Geithner by seizing FBOP on the same Friday the bank received award money from the Treasury.

One could also question whether Wamu was seized on its anniversary because it had originally embarrassed the insurance corporation by refusing to cash the agency's checks for IndyMac.

However, there was absolutely no doub that the FDIC had engaged in the biggest bailout of favored institutions in convoluted manners which defied logic, offering unlimited guarantees under the implicit backing of our tax dollars ( worse, Ms. Bair had launched TLGP even before our Congress passed the legislation to extend a $500 billion credit line for her "independent, premium-funded-only" agency).

Here was the latest ruse from our government version of AIG ( the FDIC is currently insolvent while supposedly protecting trillions in deposits):

"The US Federal Deposit Insurance Corporation is working on plans to package billions of dollars of assets from failed banks into securities, a move that will help restart the still dysfunctional markets for mortgage-backed bonds...

One option being considered by the FDIC is selling bonds with a US government guarantee in order to ensure they have triple A credit ratings."

What assets from failed banks?

Nobody wanted them.

Just take a look at those loss-sharing agreements from bank sales.

It truly amazed me that there were so many out there who still touted Ms. Bair as a candidate for Treasury Secretary, despite her cloudy judgement, poor decision making, lack of trustworthiness and reliability, refusal to heed warning from others, and tendency to justify her inconsistent actions by providing misleading information at the expense of allowing fair and honest interpretation.

I was shocked and utterly disgusted by the lack of Congressional oversight on regulatory agencies such as the FDIC.

Then again, since I was not an economics expert, maybe whatever Ms. Bair had been doing really did save America and we should replace Mr. Geithner with this brilliant and impartial FDIC chairwoman so she could lead us out of this financial mess.

After all, who said it wasn't more important for the FDIC to guarantee bonuses for Goldman Sachs and JP Morgan?  Someone had to be sacrificed to prevent losing these precious Wall Street talents to Britain or France, and that "someone" might as well be little taxpayers with meager life-savings.