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Janet Tavakoli On Why Meltdown Risk Now Is Greater Than It Was In 2007

Tyler Durden's picture


One of the foremost experts on structured finance and derivatives presents a holistic overview of not only the current economic fiasco, and in 10 brief minutes with Max Keiser she provides more succinct, unbiased and relevant information that most pundits are able to convey in years on and off TV, but also highlights the bigger problem of how the administration keeps treating the US public as a bunch of stupid infants, throwing paper blankets over raging systematic fires that are anything but doused. And yet, the administration's ploy so far is successful, unfortunately speaking volumes about the intellectual rigor of the average gullible American.

Futhermore, Zero Hedge joins in endorsing Mr. Keiser's glowing recommendation of Janet's book "Dear Mr. Buffett: What An Investor Learns 1,269 Miles From Wall Street" a must read for anyone who wishes to get a deep understanding of the real severity of America's economic debacle (we receive absolutely no compensation for recommending this book).


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Sat, 10/03/2009 - 15:23 | 87733 BabaJ
BabaJ's picture

People in structured finance and the shadow financial system are among the few to truly realize the magnitude of the problem.

Great piece.


Sat, 10/03/2009 - 18:55 | 87857 Careless Whisper
Careless Whisper's picture

Yeah, most of the people I talk to are in denial.

Mon, 10/05/2009 - 17:35 | 89228 Anonymous
Anonymous's picture

PeeWee Herman Finance 101:
There is no free lunch.

Financial meth labs indeed.

Seems only the independents are willing to speak the pobvious truth.

JT may understand when credit cyclones
implode, they take all inlfated assets with them,
including gold...

Sat, 10/03/2009 - 15:40 | 87746 Lionhead
Lionhead's picture

Bullish!!  Look for new highs on SPX, 1200 perhaps... Euphoria now will surely displace the loss of jobs and declining wages. Fools with tons of money will supply the fodder to keep rolling over debt in perpetuity.  Hedge funds, get LONG now! ;)

Sat, 10/03/2009 - 15:43 | 87750 Anonymous
Anonymous's picture

One comment she makes is that the GDP should be adjusted for inflation or deflation, and that since we have deflation this should be deducted from GDP making the drop worse. However for real GDP surely it should be added? Not that any of the figures are exact.

Sat, 10/03/2009 - 16:54 | 87788 ZerOhead
ZerOhead's picture


BTW... If nominal GDP was down 5% and the GDP deflator was -10%... we'd actually have Real GDP growth of 5%.

I think that's the 'green shoots' angle Timmy and Ben are working on.

I love macroeconomics...

Sat, 10/03/2009 - 23:26 | 88006 Miles Kendig
Miles Kendig's picture

Post of the day

Sat, 10/03/2009 - 22:11 | 87967 Anonymous
Anonymous's picture

Yes. If we have inflation at +10% and nominal GDP at +5% then we have Real GDP of -5%. The converse is if we have deflation of 10% and nominal GDP of -5%, then real GDP is +5%. I think she misspoke.

The point she is trying to make is this: GDP (output) is declining. Aggregate output = aggregate income. Income is declining but the debt remains the same. Deflation is a bitch for debtors.

Sun, 10/04/2009 - 10:25 | 88156 Anonymous
Anonymous's picture

Same all stupid mistake that so-called economists make and never seem to understand how the real world works - listen to Albert Edwards. As a business person, pay attention to prices (ie nominal), and throw volumes (ie "real" this and "real" that) away. I could not give a hoot how many pieces of widget I sell, so long as I sell enough to pay the expenses. No use selling 3% more widgets this year (vs last year) if this year's prices is 30% lower than last year, do people understand why businesses need to people go now? Fu$# the stupid economists, nominal GDP is at 2002 level, maybe even lower today, so what the fu*& if the GDP for Q3 and Q4 are going to show "growth"?

Sun, 10/04/2009 - 12:44 | 88232 DaddyWarbucks
DaddyWarbucks's picture

"The cash has to be there to make the payments, where's the cash coming from.."

That's a lot of common sense from someone who works in the "high" financial system. Many small business owners ask themselves that question so often that they should be walking around with a set of prayer beads.

An acquaintance who runs( oops I mean ran) a franchise sandwich shop shut down Friday. The in depth analysis was "I can't pay the bills anymore.." The reality of that is 17 employees out of work come monday. I read comments from so many people yakking about inflation/deflation, GDP this, CPI that, blah, blah, blah and I wonder how many have ever had to meet even a small payroll with THEIR OWN MONEY ( this last condition rules out almost all the corporate executives). Anyone reading this who has ever had to do this understands that the difference between OPM and My Own Money is what separates the men from the boys( apologies to Marla and other ladies, it's just a saying).


Mon, 10/05/2009 - 11:37 | 88900 Anonymous
Anonymous's picture

I closed my debt free, cash basis retail business early this year simply because I found that I couldn't compete on a level playing field with people using other people's money and those willing to mortgage their assets and bankrupt themselves in order to stay in business. My business should have been strong but in this topsy-turvy financial climate, I was going to have to take on debt or wither, so I closed.

Daddy, I totally get what you are saying on a real and experiential level.

Sat, 10/03/2009 - 15:46 | 87751 Anonymous
Anonymous's picture

The Zionists in charge of the Federal Reserve understand their game is up, and soon Zionists in Israel plan to soon attack Iran in order to implode the entire world system. Imperialism cannot continue to function moving ahead without a new event to collapse the global economy. We might say that their attack on Iran will *probably* fail, but that they have no other option. If they don't take drastic steps, their grip on global power will evaporate, maybe a 5% chance they will hold it for another 20 years. The attack on Iran has perhaps a 30-40% chance of success, giving the Zionist alliance with Big Energy new life, and bringing down the uprising nations in the process through a new global collapse. Do nothing = certain failure in the medium-term; drastic action = very risky but some chance of success. The writing is on the wall.

Sun, 10/04/2009 - 08:40 | 88127 Anonymous
Anonymous's picture

Translation: "We can save the world by eliminating the Jews". Happens every time...

Mon, 10/05/2009 - 00:27 | 88569 Anonymous
Anonymous's picture

"Translation: "We can save the world by eliminating the Jews". Happens every time..."

Geez, and I came away with the feeling he wanted to end the Fed.......never did see the word "Jew" until you brought it up....

Mon, 10/05/2009 - 13:47 | 88982 Anonymous
Anonymous's picture

Since the term "Zionist" apparently didn't register...

n. A Jewish movement that arose in the late 19th century in response to growing anti-Semitism and sought to reestablish a Jewish homeland in Palestine. Modern Zionism is concerned with the support and development of the state of Israel.
Zi'on·ist adj. & n., Zi'on·is'tic adj.

The American Heritage® Dictionary of the English Language, Fourth Edition

Mon, 10/05/2009 - 18:46 | 89316 gmrpeabody
gmrpeabody's picture



Sun, 10/04/2009 - 09:27 | 88136 dnarby
dnarby's picture


I'm going to give you a chance to name said Zionists in the Fed.

But if you can't... STFU f-tard.

And war is not a cause of economic instablity, it is a result.

Flagged as junk.

Mon, 10/05/2009 - 00:42 | 88575 Anonymous
Anonymous's picture

"And war is not a cause of economic instability, it is a result."

That's a joke, yes? Iraq had one of the most modern, western-style economies and societies before we started sanctions on them under Bush1 and Clinton, and then invaded them under pressure from Bush administration Zionists like Douglas Feith, Paul Wolfowicz, Richard Perle and msm Zionists like Wolf Blitzer. You want more names? Go read the PNAC manifesto, and who signed on for a "New Pearl Harbor", bubbula.

There maybe others are too timid to name names, but farang is not.

Yes, how very adult-like of you to use ad hominem attacks: "STFU F-tard", to deflect and refuse to address the charges, and divert the topic. "Happens every time..."

Are you seriously denying Israel is pressuring the world to invade Iran over their legal Nuclear program, while refusing to allow inspection of their own?

No, really, seriously?

I think the topic of eliminating the Fed is the one that needs serious discussion, and if that makes you uncomfortable, good. Greenspan. Bernanke. Shall I go on?? Who owns the Fed? Do you really want to go there?

Thanks for the video, I always enjoy watching Max.

Mon, 10/05/2009 - 14:27 | 89036 jesusonline
jesusonline's picture

Ben Shalom Bernanke looks like a zionist to me alright

Sun, 10/04/2009 - 13:53 | 88284 JR
JR's picture

In my opinion, there’s a general understanding in American politics that Zionists, not Jews per se, are Jews who want to use American political, economic and military power to support the interests of the state of Israel.  And they have been accused accurately, IMO, of using U.S. support of Israel even when it jeopardizes the national interests of the United States.

I think the war in Iraq urged on the United States by the Zionist neo-cons in the Bush Administration, using every thin pretext possible including manipulating Intelligence, forced an attack on a sovereign nation that was not a serious threat to the stability of the United States.  The airwaves are now awash with every conceivable danger illuminated concerning Iran’s nuclear program.

Given the fact that the pro-Israel political forces are so strong within the U.S. government--top to bottom in the Obama administration and in the financial sectors (yes, including Zionist influence in the Federal Reserve System)--the American people are now faced with a wake-up call.  Are we to fight another undeclared war where Congress takes no action to be on record without clear evidence as to what American interests are at stake?  It is childish and foolish to call inquiries of this kind as anti-Semitic.  We are talking about the largest economic decision of this new century, let alone the blood and sacrifice for peoples in the Middle East and families in the United States.

Are there no statesmen left who will put the interests of the United States ahead of these dangers?

Sat, 10/03/2009 - 15:56 | 87753 Anonymous
Anonymous's picture

It's refreshing to listen to people that really do understand what is going on in our financial system (as Janet most certainly does). Working for years on wall street in a senior position, I saw firsthand what was happening and Janet articulates it extremely well. Unfortunately, people refuse to listen to the "negativity" from realists who really know the truth. They would rather listen to the garbage spin and watch reality t.v.. That's why we are headed for economic disaster. Meaningful change won't happen because only crisis motivate people to seek real change and, unfortunately, it will be too late then. I really do feel sad for our future.

Sat, 10/03/2009 - 15:56 | 87754 Anonymous
Anonymous's picture

It's refreshing to listen to people that really do understand what is going on in our financial system (as Janet most certainly does). Working for years on wall street in a senior position, I saw firsthand what was happening and Janet articulates it extremely well. Unfortunately, people refuse to listen to the "negativity" from realists who really know the truth. They would rather listen to the garbage spin and watch reality t.v.. That's why we are headed for economic disaster. Meaningful change won't happen because only crisis motivate people to seek real change and, unfortunately, it will be too late then. I really do feel sad for our future.

Sat, 10/03/2009 - 18:03 | 87839 Anonymous
Anonymous's picture

from time to time i have been known to take long walks on the roads and streets around my home. today i walked past a school and lots of gen x people were out there cheering their children on in the game of football. ah yes, football in amerika. they are ignoring what is coming. they simply do not want to know. they want to live in some amerika that they think they always knew which really never existed. so i ask you anon #87754, what does what you have written mean to these people watching their sons play a football game at some middle school in south central texas? what does it really mean to you? what does it mean to american's? what does it mean to me? as i have said before and i will say it again. life as we have known it or thought we knew will never be the same and very soon. the question is what do we intend on doing about it? ignoring it? it will not go away. it will not be covered up. the damage is there. the damage cannot be repaired. the game is rigged. the game is over. so , is it better to remain quiet and in our houses, while our country dies before our very eyes? it is better to stay in our own self imposed confort zones while we yet are not hungry , waiting until the time when we will be forced by hunger or whatever to do what we must? everyday that goes by, they get stronger and we get weaker. as you have so succinctly said, i also feel very sad for our future. but anon #87754, there is hope sir. for you see, in this land, there are those who have not bowed the knee to Baal nor have they kissed his ring or his feet? no sir, there are those that are that lousy 3 percent out here, angry as hell and waiting for the time of the troubles to start. when i hear people like this tell me things i already know, it simply solidifies my desires and my hopes that maybe, by the grace of Almighty God, somehow, some way the american public will one fine day awaken to what has happened to them and revolt!!!!!

Sat, 10/03/2009 - 21:15 | 87937 Anonymous
Anonymous's picture

god bless you in the name of the father, the
son, and the holy spirit that 7000 may be found
who have not bowed a knee....

Sun, 10/04/2009 - 02:01 | 88058 Anonymous
Anonymous's picture

I was sitting in my little room in south central texas peeing in my pants over the future of amerika when some boob walks aimlessly by my window. He is ignoring what is coming. . . .

Sun, 10/04/2009 - 11:06 | 88174 Lndmvr
Lndmvr's picture

From time to time I look around the midwest city I moved to and now I don't want to any more! Check this out and look at the dates, then think of the FED, then develop a conspiracy theory, then move forwards to today. We are so screwed.  



Sat, 10/03/2009 - 18:36 | 87852 Anonymous
Anonymous's picture

Not to pick on you, but maybe these people in the Wall Street system who really understand the problem should be ringing alarm bells in D.C. instead of trying to make more money off of it.

Frankly, if such people know we're headed for disaster and they don't do their best to head it off somehow, then they deserve to burn in hell.

Sat, 10/03/2009 - 20:40 | 87916 Fish Gone Bad
Fish Gone Bad's picture

Ouch!  She has written numerous books, and been on Max Keiser.  Got any suggestions?  Now that you apparently know, are you going to do your best to head off the disaster? 

Sat, 10/03/2009 - 19:38 | 87879 Anonymous
Anonymous's picture

so what is your plan if the future is so grim?

Sat, 10/03/2009 - 21:07 | 87933 ZerOhead
ZerOhead's picture

PANIC !!!!

Sun, 10/04/2009 - 00:22 | 88023 Hephasteus
Hephasteus's picture

| Runs around screaming with Zerohead!!!!

Sun, 10/04/2009 - 12:54 | 88237 Anonymous
Anonymous's picture

Kids and I are going to see "Zombieland" today, a little continuing education in forecasting.

Sat, 10/03/2009 - 16:01 | 87760 geopol
geopol's picture

The inflation folks are right, however we don't have enough juice to fill the derivatives hole, so that protracts the time-line for it's effect on the general CPI. 


On a long enough time-line the survival rate for everyone drops to ZERO. Hmm sounds familiar.



Sat, 10/03/2009 - 16:04 | 87762 DBLTapViper
DBLTapViper's picture

Hey Tyler get this lady to be one of your contributors

Sat, 10/03/2009 - 16:28 | 87775 Anonymous
Anonymous's picture

that would be a treat.
i 2d and 3d that motion.

Mon, 10/05/2009 - 02:43 | 88617 agrotera
agrotera's picture

me too!

Sat, 10/03/2009 - 20:41 | 87918 Anonymous
Anonymous's picture

Her Book "Structured Finance and CDOs , new deveopments in cash & synthetic securitizations" is great

Sat, 10/03/2009 - 16:08 | 87766 Sqworl
Sqworl's picture

Thank you...just download her book to my Maxi


Cheeky, relax...x

Sat, 10/03/2009 - 16:51 | 87789 defender
defender's picture

Sqworl, what happened to your avatar?  Also, is the kindle any good?  I always thought that they sounded like a lot of money for a lot of headache.

Sun, 10/04/2009 - 10:48 | 88163 Sqworl
Sqworl's picture

My avitar passed....



I love my kindleDX.  It was a gift.  downloading best sellers in 2 seconds for $9.98 is a wonderful thing!  I also can adjust the font size..has built in tools and you never have to touch paper or get ink on your hands...Love it.

Sat, 10/03/2009 - 16:11 | 87768 exportbank
exportbank's picture

Bad tax policy encourages bad monetary decisions.

A dollar of earnings should be taxed at the same rate regardless of how it came about. You shouldn't need 80,000 pages to spell out fair and equitable tax rules.

Sat, 10/03/2009 - 16:31 | 87778 Anonymous
Anonymous's picture

i used to advocate that view and still agree
that an 80k page tax code is an abomination....

however, the fire economy is too powerful and
needs to be rebalance with productive economy
and such i would endorse a tax
policy increasing rentier income taxes and eliminating
labor and producer taxes....

Sat, 10/03/2009 - 16:25 | 87773 Anonymous
Anonymous's picture

what a breath of fresh air....this is must listening....

orderly bankruptcy and liquidation....what a novel idea - not...this woman is the anti-roubini.....she needs to be advising someone on how to fix the mess because she gets it and can mellifluously articulate cause and effect, problem and solution....

Sat, 10/03/2009 - 16:30 | 87777 Anonymous
Anonymous's picture

All paper will burn

Sat, 10/03/2009 - 17:55 | 87826 ozziindaus
ozziindaus's picture

I like Max and have been listening to him for a while now but I just can't confirm whether he believes in the deflation argument yet. Also I'm starting to hear alot of prominant Inflationists put out a case for deflation. I don't care about what's going to happen three, four years from now. My timeframe is immediate to 6 months away at most. Massive asset inflation through dollar devaluation in 5 years means nothing if I don't have my house by the end of the year.

Sat, 10/03/2009 - 19:24 | 87874 Anonymous
Anonymous's picture


I give you my personal money-backed guarantee that THERE WILL BE NO MAJOR CPI INFLATION WITHIN THE NEXT SIX MONTHS. Any particular subgroup, such as energy or food, could shoot up or down during any given week (especially if someone starts dropping bombs on Iran's beloved facilities), but the current deflationary pull of gravity is so strong that even $15 TRILLION in gov't handouts, loans, and guarantees - based entirely on printing and borrowing - has been insufficient to lift aggregate prices. Beyond six months, as the option-arm resets kick in, the QE and home buying subsidies are either ended or extended (or jacked upward), the CRE defaults explode, companies start hiring again or not, the consumer returns to the store or not, it gets murkier and scarier.

Sun, 10/04/2009 - 11:34 | 88191 bonddude
bonddude's picture

I agree with this. 

Sun, 10/04/2009 - 13:17 | 88259 Anonymous
Anonymous's picture

To which one must reply: Have you seen the equities? More over-priced junk (when QE gets injected to the first available vein what surges?) I have not seen, I surmise that lower EPS price have never been seen on the exchanges. In a financial crisis, in a steep contraction, in a monumental slump of industrial production, we have a ramp like this in equities?

And we're just getting started. Once the drug moves off the mainline and into middle America, inflation as the byproduct of central bank malevolent printing will take hold.

Major retailers that were fire selling in the heat of the crisis have held the line. They are NOT discounting as steeply, they ARE waiting for the policy response to reflate.

The gov't of the USA, superpower that it is, with military, technological, scientific, educational, and financial hegemony will not allow deflation to further steepen the massive debt it has undertaken and will continually add to.

If it is ruination by deflation or by inflation, they choose inflation. That at least they can steer somewhat. And inflation prolongs life expectancy over deflation.

You flatline fast with the D. But can eke out a very long time with I. See Mugabe. He shoudda been dead long time.

Sun, 10/04/2009 - 19:13 | 88422 sgt_doom
sgt_doom's picture

Exactly & spot on, Anon to the Ozz!

We are in the murkiest of territory here...nothing like this scenario has ever existed before.  All predictions are invalid at this point due to insufficient historic data.

My recommendation for the best read on the economic meltdown and necessary reforms to avoid its continuance: Nomi Prins' It Takes a Pillage --- an outstanding text on this subject. Janet Tavakoli, Nomi Prins, Prof. James Galbraith, Prof. Michael Hudson, Prof. Ravi Batra should have been Pres. Obama's appointments in the capacity of economic advisors, not those corrupt clowns he now has.

Sat, 10/03/2009 - 19:26 | 87875 Anonymous
Anonymous's picture

"... because we never deleveraged in the first place. And we're running out of ways of pumping money into the system."

Sat, 10/03/2009 - 20:24 | 87901 Anonymous
Anonymous's picture

What a marvelously articulate explanation.....even I -- with no finance/econ credentials or learning -- could understand what she's saying.

I particularly understood that all the Wall St securitized jargon can be replaced with one word -- FRAUD.

If her book is as clear and understandable as this tape, I might have to buy it.

Sat, 10/03/2009 - 20:31 | 87907 Anonymous
Anonymous's picture

Hey I resemble those remarks! Just get me another BEER!!

the bigger problem of how the administration keeps treating the US public as a bunch of stupid infants, throwing paper blankets over raging systematic fires that are anything but doused. And yet, the administration's ploy so far is successful, unfortunately speaking volumes about the intellectual rigor of the average gullible American.

Sat, 10/03/2009 - 20:46 | 87922 Fish Gone Bad
Fish Gone Bad's picture

@ "...unfortunately speaking volumes about the intellectual rigor of the average gullible American."  That is so sad and true (at least in my circle). 

Sat, 10/03/2009 - 20:47 | 87923 Anonymous
Anonymous's picture

This guy sounds like Norm MacDonald.

Sat, 10/03/2009 - 22:25 | 87976 MountainHawk
MountainHawk's picture

What's up w/ Max's hair do?

Sat, 10/03/2009 - 22:38 | 87981 MountainHawk
MountainHawk's picture

I'd like hear her go up against Peter Schiff on the inflation vs deflation argument.

Sun, 10/04/2009 - 13:01 | 88243 Anonymous
Anonymous's picture

I sent this interview as soon as it was posted to Peter via his Youtube channel, still waiting for a reply. Hopefully, he will talk about it on his Vblog on Monday.

Sat, 10/03/2009 - 23:26 | 88005 Anonymous
Anonymous's picture

What this country needs is a cross between Janet Tavakoli and Eliot Spitzer.

As Miss Tavakoli explained, the underlying problems are still there. At the root of them is fraud and corruption. Any public figure that refuses to push for accountability is likely in on the fraud.

Real change isn't likely until we get some honest,savvy people(with backbone)leading us.

Sat, 10/03/2009 - 23:32 | 88007 Miles Kendig
Miles Kendig's picture

Janet's analysis does an excellent job of taking this subject matter to a place most folks can ingest.  Rare feat.

Sat, 10/03/2009 - 23:56 | 88014 Anonymous
Anonymous's picture

Janet Tavakoli: SEC - Slumbering Esquire's Club! Ha!

Me: Okay JPM is leverage something like 850 times its tangible assets to the tune of $80 trillion, but no worries, 'cause the Fed will re-create it! (And you thought the USA's $11 trillion was high.)

Janet Tavakoli: I was expecting the USA to take the deflationary hit. It should have put banks into receivership last year?!?

Me: This the is weak link in Tavakoli's argument. With the financial industry's deep capture of Washington, the government is a walking zombie. It will continue on an irrational path until the parasite has been removed.

Janet Tavakoli: Current monetization is trying to prop up slumping GDP. The basic problem is that there is too little world-wide cash trying to pay way too much debt. But, pumping in extra dollars to hold and restore existing debt will only lead to more defaults.

Only one possible outcome, deflation.

Me: I see a more plausible outcome, a stubborn, irrational government that refuses to surrender to deflation, engenders subsequent hyper-inflation and eventual collapse.

Sun, 10/04/2009 - 00:02 | 88017 Anonymous
Anonymous's picture

What goes up; must come down.

Newton's Law.

We can climb mountains but when the fall happens, look out below.

Sun, 10/04/2009 - 02:18 | 88064 Anonymous
Anonymous's picture

I think it is clear. The government wants us to spend. They want us to default on our credit cards and spend. The reason is, without deleveraging the consumer is dead. And they can't wait for people to pay off the damn things. The reason that there was not a second stimulus was because people used it to pay of credit. That was not the intent and that was the reason we got only one!

Sun, 10/04/2009 - 02:19 | 88067 Anonymous
Anonymous's picture

I think it is clear. The government wants us to spend. They want us to default on our credit cards and spend. The reason is, without deleveraging the consumer is dead. And they can't wait for people to pay off the damn things. The reason that there was not a second stimulus was because people used it to pay of credit. That was not the intent and that was the reason we got only one!

Sun, 10/04/2009 - 13:03 | 88246 Anonymous
Anonymous's picture

Stimulus 3 will be in the form of Walmart gift cards just in time for the holidays.

Sun, 10/04/2009 - 03:09 | 88077 Joe Sixpack
Joe Sixpack's picture

Janet Tavakoli seems to "get it". I've been coming across her work for the last 2 years while I studied this collapse. (formerly

Sun, 10/04/2009 - 03:12 | 88079 Anonymous
Anonymous's picture

I used to think I like Max Keiser. That he had a strong moral foundation and was legitimately outraged by the financial misdeeds and the complicity of our government in covering it up. I no longer believe that. I watched this:

Anyone who thinks anally raping a 13 year old girl after drugging her up and getting her alone under false pretenses is simply not moral. I don't have polite words for it, so I won't say any more.

Sun, 10/04/2009 - 07:20 | 88116 Ned Zeppelin
Ned Zeppelin's picture

You're right. Watched the video.  He's unhinged and missing some essential software updates.

Sun, 10/04/2009 - 13:11 | 88255 Anonymous
Anonymous's picture

Polanski should be bunking with Charles Manson within the year.

Max was and is wrong defending this pedifile, rapist scumbag.

Mon, 10/05/2009 - 19:22 | 89352 gmrpeabody
gmrpeabody's picture


Sun, 10/04/2009 - 04:06 | 88092 Anonymous
Anonymous's picture

i dont understand why there is a view that the feds are running out of ways to inject money, why cant they just QE the entire deficit? or more, or a new massive stimulus?

if the value of the US dollar actually goes up....and these guys are sitting at the computer that can generate more dollars with a keystroke, is the theory that they just wont?

Sun, 10/04/2009 - 07:25 | 88117 Ned Zeppelin
Ned Zeppelin's picture

People with real, earned US dollars in their hands get a tad irritated when they see someone else get the some dollars by simply printing them.  QE by its nature must be announced (i.e., "overt") and must have a stated quantity or end point to avoid the danger of currency collapse. Right now, I'd say we are in overt QE mode, soon to end as to Treasuries, but have been in covert mode for quite some time.

Whatever happened to those billions of US bonds intercepted in Italy? That incident was either something or nothing, and more likely something. If so,  evidence of massive covert QE.

Sun, 10/04/2009 - 04:16 | 88095 Anonymous
Anonymous's picture

awesome video, she is a breath of fresh air

Sun, 10/04/2009 - 09:50 | 88143 Project Mayhem
Project Mayhem's picture

Janet darling, marry me!!!


Sun, 10/04/2009 - 10:32 | 88158 Stargroves
Stargroves's picture

For those of us who know Janet a little bit - you have to take her with a huge grain of salt.  I think a takeoff of Elvis Costello's "Radio, Radio" .."where she wants to bite the hand that fed her.." has never been more appropriate.  Such a more dramatic Cassandra I have yet to meet.  That said I will give her props for exposing some of this stuff for what it is.

Sun, 10/04/2009 - 10:32 | 88159 Rama V
Rama V's picture

"SEC is a captive regulator, the slumbering esquires' club...had they choked off the money supply by shutting down the financial meth labs (JPM, MS, Lehman Brothers, GS, Bear Sterns) creating the securitizations upon which the credit derivatives and derivatives were based, choked off the money supply, stopped the  ponzi scheme in its tracks, our problem would be much smaller...where are the felony indictments of senior officers who created these derivative in the first place? ..These peple are now merged with our banks!"

This next downturn will be surprising in its severity.


Sun, 10/04/2009 - 11:11 | 88178 Anonymous
Anonymous's picture

I love her answer regarding the Fed's toxic balance sheet.

Max: "Is that going to explode?"

Janet: "Yes"


Sun, 10/04/2009 - 12:37 | 88180 Chumly
Chumly's picture

I love her answer regarding the Fed's toxic balance sheet.

Max: "Is that going to explode?"

Janet: "Yes"

Enough said.  You'd never get a such straight answer from Barry, Larry, Timmy or Benny, those fraudulant bastards enabling their crooked bankstah buddies.



Sun, 10/04/2009 - 13:16 | 88258 Leo Kolivakis
Leo Kolivakis's picture

Tavakoli is superb but I pray she is wrong. One thing about derivatives is that we need to create an exchange to make OTC derivatives more transparent. I also think the notional figures are scary, but what is the real damage on banks' balance sheets? It still haven't found credible information on that, just a lot of fear mongering and obscure claims that cannot be verified.

Sun, 10/04/2009 - 19:46 | 88429 sgt_doom
sgt_doom's picture

So Leo, you sound familiar?  Goldman, perhaps? Or JPM?  Naaah...I think it's Morgan Stanley, right?

Newsflash: Former derivatives dealer, who flunked HS Algebra, found dead from exploding head syndrome!

Sun, 10/04/2009 - 13:22 | 88261 blackebitda
blackebitda's picture

"unfortunately speaking volumes about the intellectual rigor of the average gullible American."

herein lies the lack of information and knowledge productivity, coupled with the added stress of too much credit in the global financial system, that spurs the global economy down the necessary yet painful long term path of deflation and depression. 

yet the 20/80 rule, where those who do not lack the intel rigor...are able to extract wealth for ourselves and the fiduciary interests we may or may not serve. 


Sun, 10/04/2009 - 13:37 | 88272 Anonymous
Anonymous's picture

This is why America is going down the tubes, if it hasn't already.


Most of you here work in the finance industry, right? And yet here you all are, predicting doom and gloom, all because of the actions ALL OF YOU HAVE TAKEN in the financial system.

It is because of scumbags like you that doctors, teachers, engineers, and other innocent, hard working people have lost so much money with their retirement.

YOU BROKE THE FINANCIAL SYSTEM. YOU FIX IT. Don't come on here and agree with everyone that predicts dire circumstances. DO SOMETHING ABOUT IT.

Or do all of you that work in the financial system have no morals whatsoever? Maybe you're lazy? Maybe you got fired? If you did get fired from an executive position in the financial sector, GOOD! I have no sympathy for assholes like you.

All of you are what's wrong with America. You should all be shot.

Sun, 10/04/2009 - 14:59 | 88311 Anonymous
Anonymous's picture

this is a really nice summary of the deflationista that i unfortunately was having problems articulating myself during a lunch hour discussion with an inflationista that has been drinking from the peter schiff fountain of knowledge for too long apparently.

i fwd'ed this video to him since she says it so much better than i can @

given the relative size of the private/corporate credit deflation we are facing, i get the feeling that the current explosion in public debt is far from over.

i guess we'll see.

Sun, 10/04/2009 - 18:11 | 88403 Douglasnew
Douglasnew's picture


Mon, 10/05/2009 - 10:51 | 88842 Anonymous
Anonymous's picture

Anyone that worships Warren Buffett right now is late to the party and no one of the type that needs to be leading this country into the future. Our problems stem from elitist mentality of people like Buffet who perpetuate elitist control. Bloomberg, Buffet, Schwarzenegger, Goldman, Paulson, Geithner, Bernanke, all of these people are just playing whatever angle they can to keep elite control. Janet is likely no different. Just saying something different. Same people.

Sun, 10/04/2009 - 19:07 | 88421 Ruth
Ruth's picture

Here's a good piece explaining the latest attempts deferred by states on CDS'

Sun, 10/04/2009 - 19:53 | 88434 Anonymous
Anonymous's picture

I'm in the inflationist camp. Short term there may be deflation, but long term inflation/devaluation of the dollar wins out.

Why? Printing up dollars is the only way the debt can be paid off.

In deflation, the dollar goes UP in value. Does anyone think that is currently happening?

Sun, 10/04/2009 - 19:58 | 88438 Anonymous
Anonymous's picture

"...the US public as a bunch of stupid infants..."

Infants as a rule generally aren't stupid.

Quite to the contrary they are generally rather inquisitive and want to interact with their environment.

Run them through the U.S. school system and plunk them down in front of American Idol and Survivor then you might have a claim…

Sun, 10/04/2009 - 20:13 | 88445 contrabandista13
contrabandista13's picture

My ears always perk up when "Capacity Utilization" is mentioned in commentary, few mention this.  I also find it odd that the "Unemployment Rate" is still being referred  to as a lagging indicator by your regular sundry economic commentator.


Not withstanding some progress in a recovery overseas, I see little prospect of a sustainable effort being able to manifest itself domestically without moving the implementation of policy from the ridiculous to the obscene. 

I can't cry therefore I must laugh....


Best regards,



Sun, 10/04/2009 - 20:31 | 88455 Grand Supercycle
Grand Supercycle's picture


Daily charts still look toppy and USD bullish signals continue.

Sun, 10/04/2009 - 21:36 | 88490 Anonymous
Anonymous's picture

As someone who made a fortune shorting the banks and financials from 2007 to early 2009, I disagree with all of you.

The debt load carried by America is large but as long as others will buy it, we will muddle forward. I cannot speak to inflation of delfation, but already I have made more than 300% YTD 2009, with my energy stocks and certain discretionary consumer stocks. No margin, just plain common sense. I made 1200% +- in 2007 and 248% in 2008.

I am a young, retired broker. I retired as I made a fortune just following the news reported in the MSM on varous firms. I honestly wonder, if I saw it coming why so few others. Seems everyone I talk to lost a at least half their portfolios. Its nice to be called a genius, but that is way to generous a term. When I did retire I found out I had been nicknamed Legendary Trader, a label I really appreciated from the trading dept.

Sun, 10/04/2009 - 23:24 | 88541 Douglasnew
Douglasnew's picture

You sound like a young retired jerkoff to me.

Sun, 10/04/2009 - 23:35 | 88548 Grand Supercycle
Grand Supercycle's picture

#88490 is boasting, but it sounds like it's justified.

Good on him.

Mon, 10/05/2009 - 08:10 | 88662 Green Sharts
Green Sharts's picture

Do you believe everything you read on the internet?

Mon, 10/05/2009 - 00:02 | 88562 Anonymous
Anonymous's picture

warren buffet has become a chump.

not sure i would trust the bubbling baffoon running around 30 years late to the party that buffett is on to something.

buffett is old news. old news at best now.

Mon, 10/05/2009 - 00:48 | 88578 Leo Kolivakis
Leo Kolivakis's picture

To that young retired broker...start a blog, spread the wealth. :)

Mon, 10/05/2009 - 08:11 | 88663 Green Sharts
Green Sharts's picture

It's not surprising that you're gullible enough to buy that story.

Mon, 10/05/2009 - 01:17 | 88593 Anonymous
Anonymous's picture

So if deflation wins out, what happens to US Gov't debt. Doesn't it become more burdensome in a deflationary scenario and since we are already bankrupt what happens? Do we repudiate the debt? If so what happens to the dollar? I would guess interest rates go to the moon as the dollar heads to zero.

Mon, 10/05/2009 - 10:54 | 88851 Anonymous
Anonymous's picture

Buffet sold a ton of S&P puts and then sold even more of them. Selling options is about the riskiest thing anyone can do. And to hear him talk about it, he has absolutely no f-in clue what he is doing or what he owns.

Mon, 12/28/2009 - 19:40 | 176334 Anonymous
Anonymous's picture

Keiser Rulez...

Do NOT follow this link or you will be banned from the site!