Janet Tavakoli

Big Banks “Bought” Congress … So Credit Derivatives Are Bigger than Ever

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– Big Banks “Bought” Congress … So Credit Derivatives Are Bigger than Ever (Washington’s Blog, Aug 21, 2014):

The Causes of the 2008 Crisis Have Never Been Addressed

We’ve noted for years that Washington never reined in the risky derivatives which helped cause the 2008 crash … and so the big banks hold more derivatives than ever.

We’ve also noted that the financial services industry has bought and sold Congress.

Indeed, Washington never fixed the causes of the 2008 financial crisis.

Yesterday, Janet Tavakoli gave a good overview of the problem to CBC:

Read moreBig Banks “Bought” Congress … So Credit Derivatives Are Bigger than Ever

Janet Tavacoli: Why Obama Allowed Bailouts Without Indictments

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From the article:

The government’s bailout plan destroyed capitalism. In a capitalist system, those who stood to gain–and already made off with large gains—would have to bear the risk. The bailouts represented a corruption of capitalism. Crony capitalism violates the spirit of democracy established by the Founding Fathers of the republic known as the United States. I expressed these sentiments in a letter to the Financial Times on September 29, 2008.

– Why Obama Allowed Bailouts Without Indictments (Tavacoli Structured Finance, Sep 10, 2013):

By Janet Tavacoli

In November 2008, President Obama was elected, and he was sworn in January 2009. The country was promised change and reform. Recently two democrats close to the top of President Obama’s administration made excuses to me for the lack of financial reform in the United States. Their separately related versions were remarkably similar, so similar they seemed scripted:

The administration made a bargain, and I’m not sure it was the right decision. The world was teetering on the edge of collapse. There was a crisis of confidence. There would have been unimaginable consequences. So bad even your imagination can’t handle the truth?

Read moreJanet Tavacoli: Why Obama Allowed Bailouts Without Indictments

Janet Tavakoli: Understanding Derivatives And Their Risks (Video)

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YouTube Added: 15.09.2012

– Janet Tavakoli: Understanding Derivatives and Their Risks (ZeroHEdge, Sep 15, 2012):

Global financial markets are awash in hundreds of trillions of dollars worth of derivatives. By some estimates, the total amount exceeds one quadrillion.

Derivatives played a central role in the 2008 credit crisis, as they had a brutal multiplying effect on the magnitude of the carnage. As a bad asset was written down, oftentimes there were derivative contracts written against it that resulted in total losses 10x greater than the initial write-down.

But what exactly are derivatives? How do they work?

Read moreJanet Tavakoli: Understanding Derivatives And Their Risks (Video)