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.