Those were just some of the issues that led the FBI to pass on the case. As TPM reported, FBI officials were concerned about entrapment issues in the case and did not believe he had the capability of pulling off the bomb plot without the NYPD’s informant.
If the FBI shied away from a setup, you know it's gotta be blatant. This is Bloomberg's way of distracting our attention away from Wall St. and the Occupy movement. Keep 'em stupid (see: Fox 'News' lies!) and keep 'em scared and you can get the sheep to swallow anything.
And, just saying, the guy the NYPD (or FBI) didn't set up (and didn't catch until after the fact) was nearly successful.