FLASH: Now even the FDIC is run by ignorant clueless monkeys who have no idea how the world works

They say that life's losers end up in government bureaucrat jobs, since they couldn't cut it in business.

Well, FDIC Chairman Shelia Bair has now proven that point.

Her brilliant idea espoused this week is for mortgage lenders to violate the terms of the contracts they signed with homedebtors and FREEZE THE TEASER RATES they offered on their toxic loans, for the life of the loan.

Scenario A: Smart person plays by the rules, takes out a 30-year fixed mortgage at 6% for a house they can afford

Scenario B: Dumb person or housing gambler takes out a 1-year ARM 3% teaser rate mortgage for a house they can't afford (or one they can and wouldn't it be great if that rate doesn't reset!)

So now FDIC Head Monkey Bair wants the mortgage lender to freeze the 3% rate on the dumb homedebtor. Uh, I don't think so! Ever hear of a contract? Ever hear of moral hazard?

I don't even know where to start with this stupid idea, except to note how dangerous it is to have Heckuva Job Brownie II running the FDIC right now. But I leave you with this point, shouted for full effect:

PEOPLE WHO MAKE $50,000 A YEAR SHOULD NOT "OWN" $1,000,000 HOUSES. GOVERNMENT SHOULDN'T WANT THEM TO, LENDERS SHOULDN'T ALLOW THEM TO, AND SOCIETY SHOULDN'T BAT AN EYE WHEN THEY LOSE THEIR HOMES AND MOVE INTO SOMETHING THEY CAN TRULY AFFORD.

FDIC to mortgage servicers: Freeze ARM rates
Top bank regulator suggests industry cuts losses now to prevent foreclosures.

NEW YORK (CNNMoney.com) -- The heat on U.S. mortgage lenders and servicers was turned up a few degrees this week when the country's chief bank regulator publicly proposed that they permanently freeze interest rates on subprime adjustable-rate mortgages (ARMs) for many homeowners.

"Keep it at the starter rate. Convert it into a fixed rate. Make it permanent. And get on with it," Federal Deposit Insurance Corp. Chairman Sheila Bair said in prepared remarks at an investor's conference.