The current TARP and toxic assets solutions are Ponzi schemes, more return promised than assets to cover them. Sounds like the property valuations run up with fraudulent mortgage appkication data and AIG credit default swaps doesn't it?
God help us from these confidence games.
"The U.S. government and the Federal Reserve have spent, lent or committed $12.8 trillion, an amount that approaches the value of everything produced in the country last year, to stem the longest recession since the 1930s.
New pledges from the Fed, the Treasury Department and the Federal Deposit Insurance Corp. include $1 trillion for the Public-Private Investment Program, designed to help investors buy distressed loans and other assets from U.S. banks. The money works out to $42,105 for every man, woman and child in the U.S. and 14 times the $899.8 billion of currency in circulation. The nation's gross domestic product was $14.2 trillion in 2008.
The cost of the bailout grows, potential exceeds $12 trillion ...the FDIC is going to be insuring 85% of the debt - funneled through the Treasury - that "private" investors will use to acquire assets via the Public-Private Investment Program, or PPIP.
The FDIC has effectively been hijacked by Wall Street to protect banks, shoving the FDIC's original mission -- to protect depositors -- a notch or 2 down the financial food chain.
Naturally, the FDIC "projects no losses" on these loans, as Sorkin reported in his original article.
Congress won't authorize $1 trillion dollars in loan guarantees to finance the PPIP, because that would be a direct ripoff, and people would get upset. Seats would be lost.
Five Things: A Beautiful Scheme 
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