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VIDEO:
A Bailout Alternative
BNN
Squeeze Play - September 26, 2008
For a couple of years financial Paul
Reveres said the red ink is coming, yet Washington
did nothing.
Now Washington will
try to inflate their way out of the problem and risk
both capitalism (taxpayers take the risk of probable
losses, but did not benefit from prior gains) and
democracy (the modified “oversight” is
too weak and virtually non-existant). The
moral hazard
is breathtaking. We are destroying capitalism and
true democracy all in one blow.
We have to delever. Less debt (less leverage) benefits both
stocks and bonds. Instead of risking taxpayer dollars to accomplish
this, I advocate forced restructurings. Existing shareholders
will be wiped out, and creditors will have to take a debt for
equity swap.
Clients
of Tavakoli Structured Finance also have access to proprietary
TSF research, which is not published in any other paid or public
forum.
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Janet
Tavakoli is the president of Tavakoli Structured Finance,
a Chicago-based firm that provides consulting to financial
institutions and institutional investors. Ms. Tavakoli has
more than 20 years of experience in senior investment banking
positions, trading, structuring and marketing structured
financial products. She is a former adjunct professor of
derivatives at the University of Chicago's Graduate School
of Business. She is the author of: Credit
Derivatives & Synthetic Structures (John Wiley & Sons,
1998, 2001), Structured
Finance & Collateralized Debt Obligations (John
Wiley & Sons, 2008).
Janet Tavakoli's book on the global financial meltdown is Dear
Mr. Buffett: What An Investor Learns 1,269 Miles From Wall Street (Wiley
2009)
Clients
of Tavakoli Structured Finance have the benefit of proprietary
consultation, which is not available in any other paid or
public forum. Clients also commission proprietary research
and analysis.
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