thank you very much janet tavakoli of tavakoli structured finance. still ahead...a well known author explains how capitalism shapes immigration. the debate on immigration has been hit on all sides in recent months. and now one author is reframing the debate from the perspective of capitalism. earlier we spoke with jeffrey kaye, author of the book "moving millions". in your book you say the global economy and immigration are linked together, how exactly? they always have been. people have always followed trade routes and companies. and they go where they can find opportunity. if opportunity moves, people will go where these opportunities are. we have always been on the move and always will be. if we think our life will be better off in another place and the risk is worth it. we will take it. you also use the term coyote capitalism in terms of the government and business actually creating the problems. you say these are the causes of immigration, how exactly does that happen? well coyote is a slang term for a human smuggler. they do not really care about the wealth o

janet tavakoli of tavakoli structured finance is here to give us her take. welcome to the show janet. let's go over the fines. citi, $75 million fine for underestimating its sub prime exposure. goldman sachs paid 550 million for the way it marketed an investment deal. what do you think about the amount of those fines? well it's interesting, because what does it really take to get the sec and congress excited about what has been going on in the market? this is the largest ponzi scheme in the history of the capital markets and they're treating all of these guys with kid gloves. and not only that, the charges that they're going after seem almost to be designed to miss the main mark. let's take an example of citi group. as you are aware, there are looking at citi group understating its exposure to sub prime. but what are the implications of that? the implications are enormous in terms of what citi group did. among other things, they should be looking at the citi group officers for potentially lying their heads off to congress. and i want to go into detail exactly

janet tavakoli. thanks so much. > > thank you. thank you bill. still ahead, what it means for your money if the u.s. edges over the fiscal cliff. that's next. fears about the so-called fiscal cliff are growing among big- time money managers. jeff glenzer, who represents the association for financial professionals, joins us this morning with the result of a new survey of around 1,000 financial leaders. good morning. what's the top economic concern? > > the top economic concern really is that fiscal cliff. that's coming up very quickly, and our members are very concerned about its impact if it's not addressed. 75% of them believe that if the fiscal cliff were to occur, that the economy overall would suffer, and 50% believe that their own businesses would suffer under those circumstances. > > how much of a role do money managers think the upcoming election will play? > > it's interesting, our survey doesn't really think it's the outcome of the election that matters so much as it is that they get past the election and the administration, whoever's ad

janet tavakoli. thanks so much. > > thank you. thank you, bill. still to come, how decisions on capitol hill impact your portfolio. how to make it work in your favor, next. how much does congress play into your portfolio? perhaps more than you think. eric singer is the author of the new book "trade the congressional effect." he shares the secrets behind his congressional fund. how does your fund work? > > i went back and looked at the stock market going back to 1965 day-by-day, and i found that on the 7900 days that congress is in session, the market went up less than 1% annually in price. and on the 4100 days they were on vacation, the market has gone up 16% in price. so i launched a mutual fund to mimic that, and that's the strategy of the fund. we only invest in the market on the days when congress is on vacation. > > that's interesting. your fund is up 2% for the year. what does that say about our lawmakers? > > it says that this year they're having a little bit better year than most years. but, while the fund invests on a day-to-day basis, it

according to janet tavakoli. "aig wants to stay alive.. what's happening is that investors are picking at the corpse of aig.. money flows into aig and it flows out to trading partners.. investment banks.. getting huge paydays.. paying their employees huge bonuses. " in aig's latest quarterly report issued in august... the company reported asset sales.. generating 4.6 billion dollars in after tax proceeds... during the first 6 months of the year... aig's asset sales have been slow... because of lower than expected values for its operations... and hopes are dimming that taxpayers will actually see the entire bailout money paid back. "do i expect the 180 billion paid back.. possibility.. but the interest behind it.. that remains to be seen... i don't see how that could happen unless the values spike and they can sell at a higher price " critics believe taxpayers.. will likely never get the best price for aig's assets. "if the 180 billion is ever paid in full.. it will be because the 180 billion in taxpayer money is disguised as profits at aig

janet tavakoli is with tavakoli structured finance and rob stein is managing partner at astor asset management. both will be welcome to the program. let me begin to janet this quarter of goldman sacks in numbers $13 billion in revenue is this a typical of how banks have behaved in last quarter of? if it is a bit a typical gold demand has done a fabulous job would generate revenue. what does said there is atypical in other ways too. because they have managed to remain independent and they have managed to get a lot of concessions. if we've given them a lot of belau money to the front door in the back door and they're looking to pay 49 percent of the revenue out if as compensation this house must have reserved for compensation. is one of those, traverses the i've mentioned in let me ask you will return to that issue in a moment but aren't resolved or a scene with a look at the revenue is $13 billion earnings per share of almost $5 per share is this an indication that this market is returning to some sense of stabilization? if the market is turning to some sense of stabilization but i don't think

janet tavakoli of tavakoli structured finance said "basically, american taxpayers are being mocked by the way investigations are being done and how lightly these officers of banks are being let off. issues are not being brought up in congressional hearings. they are a mockery, just pr stunts." citigroup received more than 50 billion dollars in bailout money during the financial crisis. tavakoli says citigroup is still on government life support and the 75 million dollar fine is being paid for indirectly by taxpayers anyways. as enbridge crews work to clean up a massive crude oil leak in michigan, the company is reportedly proposing to building an oil pipeline between british columbia and alberta, canada. earlier this week, one of the company's pipes burst in marshall, michigan, spilling 1 million gallons of crude into a tributary of the kalamazoo river. it's devasting wildlife and could make it's way into lake michigan and the detroit river. reports say the canadian company was previously cited for failing to monitor corrision in the pipes. wednesday, enbridge energy partners released