Using Veritas to Construct the "Per…

29-04-2017 Hits:84610 BoomBustBlog Reggie Middleton

Using Veritas to Construct the "Perfect" Digital Investment Portfolio" & How to Value "Hard to Value" tokens, Pt 1

The golden grail of investing is to find that investable asset that provides the greatest reward with the least risk. Alas, despite how commonsensical that precept seems to be, many...

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The Veritas 2017 Token Offering Summary …

15-04-2017 Hits:79081 BoomBustBlog Reggie Middleton

The Veritas 2017 Token Offering Summary Available For Download and Sharing

The Veritas Offering Summary is now available for download, which packs all the information about Veritas in a single page. A step by step guide to purchasing Veritas can be downloaded here.

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What Happens When the Fund Fee Fight Hit…

10-04-2017 Hits:78928 BoomBustBlog Reggie Middleton

What Happens When the Fund Fee Fight Hits the Blockchain

A hedge fund recently made news by securitizing its LP units as Ethereum-based tokens and selling them as tradeable (thereby liquid) assets. This brings technology to the VC industry that...

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Veritaseum: The ICO That's Ushering in t…

07-04-2017 Hits:83414 BoomBustBlog Reggie Middleton

Veritaseum: The ICO That's Ushering in the Era of P2P Capital Markets

Veritaseum is in the process of building peer-to-peer capital markets that enable financial and value market participants to deal directly with each other on a counterparty risk-free basis in lieu...

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This Is Ground Zero for the 2017 Veritas…

03-04-2017 Hits:79978 BoomBustBlog Reggie Middleton

This Is Ground Zero for the 2017 Veritas Offering. Are You Ready to Get Your Key to the P2P Capital Markets?

This is the link to the Veritas Crowdsale landing page. Here is where you will be able to buy the Veritas ICO when it is launched in mid-April. Below, please...

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What is the Value Proposition For Verita…

01-04-2017 Hits:82285 BoomBustBlog Reggie Middleton

What is the Value Proposition For Veritas, Veritaseum's Software Token?

 A YouTube commenter asked a very good question that we will like to take some time to answer. The question was, verbatim: I've watched your video and gone through the slides. The exchange...

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This Real Estate Bubble, Like Some Relat…

28-03-2017 Hits:53259 BoomBustBlog Reggie Middleton

This Real Estate Bubble, Like Some Relationships, Is Complicated...

CNBC reports US home prices rise 5.9 percent to 31-month high in January according to S&P CoreLogic Case-Shiller. This puts the 20 city index close to an all time high, including...

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Bloomberg Chimes In With My Warnings As …

28-03-2017 Hits:81291 BoomBustBlog Reggie Middleton

Bloomberg Chimes In With My Warnings As Landlords Offer First Time Ever Concessions to Retail Renters

Over the last quarter I've been warning about the significant weakness in retailers and the retail real estate that most occupy (links supplied below). Now, Bloomberg reports: Manhattan Landlords Are Offering...

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Our Apple Analysis This Week - This Comp…

27-03-2017 Hits:81292 BoomBustBlog Reggie Middleton

Our Apple Analysis This Week - This Company Is Not What Most Think It IS

We will releasing our Apple forensic analysis and valuation this week for subscribers (click here to subscribe - lowest tier is the same as a Netflix subscription). As can be...

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The Country's First Newly Elected Lame D…

27-03-2017 Hits:81101 BoomBustBlog Reggie Middleton

The Country's First Newly Elected Lame Duck President Will Cause Massive Reversal Of Speculative Gains

Note: Subscribers should reference  the paywall material here for stocks that should give a good risk/reward scenario for bearish trades. The Trump administration's legislative outlook is effectively a political desert, with...

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Sears Finally Throws In The Towel Exactl…

22-03-2017 Hits:86951 BoomBustBlog Reggie Middleton

Sears Finally Throws In The Towel Exactly When I Predicted "has ‘substantial doubt’ about its future"

My prediction of Sears collapsing once interest rates started ticking upwards was absolutely on point.

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The Transformation of Television in Amer…

21-03-2017 Hits:84969 BoomBustBlog Reggie Middleton

The Transformation of Television in America and Worldwide

TV has changed more in the past 10 years than it has since it's inception nearly 100 years ago This change is profound, and the primary benefactors look and act...

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The government is about to kick off the CMBS aspect of the TALF program. They are expecting a slow start to the program. For one, it will start with CMBS issued this year, but will later accept earlier issues. The real problem is that no matter how much liquidity you throw at the CMBS market, market players simply overpaid for previous purchases through the bubble, using too much leverage in the process.

As the bubblicious market corrected, this resulted in many totally insolvent deals. Thus, no matter how much money you have to throw at a problem, you don't want to throw it at a loss. Insolvencies are guaranteed losses unless the dynamics of the deal is changed and prospective of equity is created somewhere. You cannot take a 120 LTV property and refinance it at 75 LTV (what I believe is the going rate) without someone taking a big, cold bath! As a matter of fact, in order to even take that bath you have to come up with 35 points of equity - otherwise we are talking about default. Even the more marginal deals at 90 LTV cannot be refinanced at 75 LTV, hence the deluge of equity offerings. 

It is unfortunate that risks that are virtually unfinanceable in the debt markets, and were literally driving lenders into bankruptcy as far back as a year and a half ago (ala Lehman and Bear Stearns) are now being peddled to equity investors. Oh well to each their own.

From Bloomberg:

Fed’s Commercial Real Estate Aid May Have Few Deals for Start 

The Federal Reserve may have few, if any, securities deals for the start of its program to aid the commercial real estate market and head off more losses at U.S. banks.

 

Today is the first monthly deadline for investors to apply for loans to buy new commercial mortgage-backed securities through the Term Asset-Backed Securities Loan Facility, or TALF. No issuers have publicly announced debt that’s eligible for the program. The Fed has made $25.2 billion in TALF loans for other securities, including those backed by auto and credit-card debt.

“I would be very surprised” if there are any deals this month, said Kevin Petrasic, a former official at the Office of Thrift Supervision who is now an attorney with Paul, Hastings, Janofsky & Walker LLP in Washington. “Unless the market really starts to pick up within the next couple weeks, I think July is going to be a little challenging as well.”

The stakes of TALF aid extend beyond the markets for office and retail space. Worsening problems in the commercial mortgage market may accelerate the drop in property values, increase defaults and weaken banks’ finances, New York Fed President William Dudley said this month.

Dudley set expectations low, saying in the June 4 speech that he didn’t expect any activity today because “the process for CMBS securitization takes quite a while to ramp up.”

“Don’t take that as a mark of the success of the CMBS effort, please,” he said at the time.

When Fed policy makers last met in April, some officials cited “mounting losses in commercial real estate, which could have substantial adverse consequences for regional banks and other financial institutions with significant concentrations of such assets,” according to minutes of the two-day session.

Deadline Today

Today’s application deadline applies to securities issued this year. In late July, the Fed will start accepting investor requests for loans to purchase older CMBS.

“This may be, and likely is, more challenging than dealing with other eligible assets,” said Laurence Meyer, vice-chairman of Macroeconomic Advisers LLC and a former Fed governor.

The Fed, acceding to an industry request in May, authorized TALF loans of as long as five years, up from three years for other parts of the TALF. Real estate groups including the Mortgage Bankers Association had lobbied the Fed for the extended loan terms.

Fed officials hope the TALF -- an emergency program that may make up to $1 trillion in loans -- will help revive the $760 billion market for CMBS. That in turn would lower interest rates and expand the availability of loans for the commercial real estate market....