Subject: The Limits of Delusion

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Tavakoli Structured Finance, Inc.
"Of course, there is still much work to be done. That means honestly confronting the crisis of Islamic extremism and the Islamists and Islamic terror of all kinds." -- President Trump in Riyadh

"Where are you headed, Europe? Rise from your knees and from your lethargy, or you will be crying over your children every day." -- Polish Prime Minister Beata Szydlo

The Limits of Delusion (Oct 18, 2018)

I believe the Democrat Party is losing members, because it became too radical and "progressive" for many members. Last night Tucker Carlson interviewed a newly fired local Democrat Party leader who had written a Facebook post a hear ago: "I stand for the flag. I kneel for the cross." Apparently that isn't supportive of the new Leftist agenda. Former moderate Democrats are now moderate Independents or moderate Republicans.


The Leftists' misguided agenda is, at times, dangerous to the safety and well-being of society. I submitted a letter about one such agenda to The Financial Times. It wasn't printed by them. Here is the text of the letter:

Sophia Gaston presupposes feminists and transgender activists have “become enemies”. (“Gender fluidity leaves policymakers floundering,” October 12). Perhaps they have, but if so, it seems to be a recent development.

Apparently some feminists do not want women to be referred to as “womxn.” Feminists compromised themselves in the interest of gaining “progressive” political allies, and now it has backfired on them.

Many women—I include myself among themare not bothered by this at all. The reason is simple. I don’t care what transgender activists believe or demand. I won’t ever refer to women as “womxn,” and I won’t bother editing their writing.

Biology isn’t changed by beliefs. There are only two genders: male and female. In rare cases, men are born with Kinefelter syndrome and have XXY chromosomes, but they are still male.

Recently, press in the UK reported that “transgender” Karen White (a legal name change?), born male, raped two women, was jailed, and then sexually assaulted two female inmates. He used his “transgender” status to gain access to vulnerable women.

Girl Guide Leader Helen Watts was fired for objecting to “transgender” boys sharing tents and other private areas with girls. She was concerned for the safety of the girls.
Misguided ideology puts women at risk.

In Arsenic and Old Lace, the elderly deranged aunts pandered to their nephew’s delusion that he was Teddy Roosevelt, because it made him happy.

There’s nothing wrong with making “transgenders” feel happy. But tolerance and understanding should be combined with treatment and prevention, as U.S. psychiatrist Dr. Paul McHugh has recommended. More than that, understanding and tolerance must have boundaries for the safety, happiness, and health of society as a whole.

Wall Street’s New Alphabet Soup (Sept 29, 2018)

“After a decade of low interest rates, money managers are hunting for investments that pay more ‘and will entertain almost anything,’ said Janet Tavakoli, president of Tavakoli Structured Finance." Products that triggered Wall Street's crisis—then & now: “The toxic alphabet soup that almost took down Wall Street is staging a comeback.”
Influence, Mind Control, and Rhetological Fallacies

Can the media manipulate you? Yes. Being aware of techniques is a first step to self-defense. If you have read Pre-Suasion, you may also enjoy information on cognitive illusions such as Scientific American’sWhat Can Magicians Teach Us about the Brain?”  or “Stage Hynosis—How and Why it Works.”

Even word games can confuse and mislead. Here’s a great review of Rhetological Fallacies that abound in financial, social, and main stream media.

In my novel, Archangels, a targeted PSYOP is used against the protagonist.These techniques are surprisingly effective in practice.

Today marks the first release of the large print edition of Archangels for the minority of people who prefer that format. It conforms to N.A.V.H. standards, except the spine isn’t as flexible. But one can bend it back to lay flat, if desired.
Citi Resurrects Synthetic CDOs, Bane of the Credit Crisis

Sridhar Natarajan, Dakin Campbell and Alastair Marsh of Bloomberg authored an excellent take on Citi's claims (September 26, 2017)  "Citi is Bringing Back One of the Most Infamous Bests of the Credit Crisis." The bottom line is that the risk is mispriced. Oh, but Citi claims this structure is safer.

Here's an excerpt:

“There is a whole generation of people in finance who never knew or forgot what the problems were with synthetic CDOs,” said Janet Tavakoli, a 30-year veteran of the financial markets who runs a consulting firm and has written books on structured credit and CDOs. “Just as derivatives can lever up the upside, they can lever up the downside.”
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