Q&A: Janet Tavakoli

I agree with you. The FDIC has no money. The FDIC is backstopped by the Treasury, which is backstopped by the Fed, which is backstopped by a printing press. All the FDIC is guarantee the nominal value of your bank account by having the money printed. The best thing to do is to let the bank runs happen and put the bank's assets into the receivership of its depositors.

This entire hour long interview summed up in one word:

HYPERINFLATION

"financial meth labs" There`s a new one.

At 5:50 she is wrong. Worry about your fiat FRNs in the bank. The FDIC has no more money, so they will go to the Fed to print up more. Yeah, you will technically get your money back, but you won't be able to buy anything with it, when it costs 50,000 FRNs to buy an apple.

The origin of Credit Derivatives tinyurl . com / n4xlj3

This is an extremely helpful interview in terms of understanding these complicated instruments. Janet excels at explaining these at a level I can understand.

Janet is a Very classy and smart women. I am sure her clients are on the right path.

The stall for time of unwinding the CDOs is highly dependent on the underlying asset class, real estate. Both residential and commercial.

A reversal in Case-Shiller pricing trend, a residential pricing example, could trigger a cascade failure with banks in the process of deleveraging by the many Treasury/Fed programs.

The complex instruments have relative solvency in underlying asset price increases.

Postponing debt deleveraging, by delaying insolvency increases the risk of crisis.

At times, the segment sounded like a job interview, although Janet's background is interesting, some questions, IMHO, were a relative waste of Janet face time.

The line of Geithner questioning should have lead to Greenspan/Bernanke Federal Reserve failure to step in and pressure the SEC to investigate these banking practices. The FED exists to prevent this type of banking systemic risk.

The Obama topic should have lead to executive branch fiscal irresponsibility.

Janet Tavakovi's explanation of events related to the crony capitalists splurge in the past few years is excellent. Too bad that most people will not take the time to watch this interview; they could learn what a sorry bunch of Congressional leaders inhabit the US H o Representatives. Her comments indicate that B Obama put the foxes in charge of the hen house (just as his recent predecessors in the White House have done).