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VIDEO:
A Bailout Alternative - BNN's Squeeze Play - Sept 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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