The TARP II bailout plan is a giant bonus for hedge funds

You'll hear words like TALF, aggregator bank, and covered bond programs tomorrow.

And you'll also hear that our government is going to purchase bank assets with help from the private sector. So that means our government, will be partnering with hedge funds, so they can purchase the assets, with a taxpayer backstop. So good luck finding any transparency here!

Why else would a hedge fund partner with the government? Last I checked, there wasn't any law prohibiting a hedge fund from buying the bank's dreck. But now the hedge fund would get a guarantee behind their purchases. And it probably will be a non-recourse!

So now we have the hedge fund bailout, and the bank bailout intermixed. The hedge funds can pretend that they are savvy in purchasing these assets, and the banks can pretend they unloading their toxic assets.

All the government has to do, is to allow the hedge funds to lever up their purchases. And that will allow them to pay a higher price, courtesy of government non-recourse financing. After all, what's the cost to borrow money, when the asset qualifies for "taxpayer insurance?"

And then our Treasury department can pretend that the taxpayer isn't getting shafted.

Until Meredith Whitney throws another fit, right after Geithner speaks!