Re: OT: Janet Tavakoli

lawhonac@xxxxxxxxxx wrote:
I listened to this interview: http://www.q-and-a.org/ with Janet
Tavakoli that aired last night on C-SPAN. Ms. Tavakoli has some tough
comments about the Wall Street bankers – she refers to them as
“interested men” - who got us in to this financial mess and the huge
conflicts of interest that exist between these individuals and
American taxpayers. Ms. Tavakoli believes, as I do, that “crimes”
have been committed against the average American and that a lot of
these men (who have been held in such high public esteem) do not
deserve their lofty reputations. I happen to agree with Janet, but I
suppose others may believe that Wall Street bankers can do no wrong.

Alan C. Lawhon
Huntsville, Alabama

Crimes were committed. By those that took the liars loan. Just because they didn't check didn't mean that it was "legal" to lie. Those that grossly lied, need more penalty than just being allowed to go bankrupt. They essentially stole thousands, tens of thousands, or hundreds of thousands of dollars on the basis of those lies.

Those that allowed liars loans to "exist", should be thrown out of office.

Those that insured those loans, are having done what could be done. Their companies are being rendered worthless, and the stockholders are being rendered worthless

Whether or not there should be penalties or clawbacks to salaries, is surely not possible, as they haven't done anything, illegal.

Those that rated tranches as AAA, when they clearly weren't. This is always a ratings risk, and it has never required a criminal penalty for getting it wrong. It is not clear that there has ever been anything other than a damaged trust for getting it wrong.

Remember, and this is important. It is not banks that are being bailed out, or insurance companies, or homeowners, or car companies. It IS DEPOSITORS. Those that have cash in money market accounts. By far the vast majority of money in these accounts are not individual accounts, nor it is it insured. It is in the accounts of ALL THE OTHER BUSINESSES.

If we don't bail out the depositors, THE ENTIRE COUNTRY GOES BROKE, over night. ALL BUSINESS GOES BANKRUPT.

Don't y'all see. Yes it sucks. But not nearly as bad as "letting the banks fail." Which is not all antiseptic you see. It is letting Microsoft fail. Mcdonalds, Costco, Starbucks, Arbys, Home Depot, and the Party Store, and Amazon.com fail. All of these people with cash in the bank. BILLIONS AND BILLIONS of uninsured dollars, put in money market accounts by corporate decree. Money that is supposed to be 100% safe. Always. Would be gone in an accountants swipe of the pen. The bank would be insolvent. Meaning that the money that all of these businesses entrusted to the banks would be gone. It is uninsured.

The only way to make this work is to somehow let the transactions unwind as reasonable as possible. In the end the banks and shareholders are not winning. But the depositors are being kept "healthy".

Ultimately, inflation wise, much of the wealth that is being captured by the fed or treasury will be destroyed as an inflation counterweight to the money put in.

BTW. I was the first one to take your under on this bet. You are still just a guy hanging on to the rantings of those that are trying to get there name out there.
.

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