Using Veritas to Construct the "Per…

29-04-2017 Hits:94542 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:85473 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:85841 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:89943 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:88378 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:88122 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:59262 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:87712 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:87269 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:87609 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:94010 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:91301 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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This is a piece from a regular reader:

In The Twilight Zone

I feel like I'm in the twilight zone.  I'm not sure what makes me feel this way more.

  • The speediness of the FBI to Goldman's beck and call (source
  • Or Goldman paying itself record bonuses... *now* (source)
  • Or the fact that a former assistant Treasury Secretary is saying the current Treasury Secretary works for Goldman Sachs (source)

    [Or this] 

    Real Capitalism versus Byproducts of Oligopolistic Rentier Economy. I've got nothing against people paying themselves well when they legitimately earn it.  It is quite another story when the playing field is entirely tilted towards the rentier class, in this casino capitalistic toll booth economy we have evolved into, where financial services as a whole levies an unduly large tax on the real economy disproportionate to the value it is creating, primarily via interest on an unsustainably large pile of debt (source).  Perhaps the biggest bucket shop casino the world has ever seen is the global derivatives market, which according to the BIS's Q4 2008 report has $959 trillion notional outstanding (BIS).
    Dotting the i's and crossing the t's, we can see that the average person is paying 54% of total income out in the form of taxes alone (NAF), which would have our Founding Fathers rolling in their graves.  And that is holding aside our devolution from a set of autonomous commonwealths into an economy highly dependent on big government.  We have the highest number of people in prison per 100k than anyone in the world (UN).  We have 5% of the world's population but 25% of the world's prisoners (HO).
    Our society is at its best when there is competition, while we have legislated away our checks and balances and financial services anti-trust laws.  How is it again that 4 banks hold 94% of all bank derivative assets (OCC)?  This confluence of factors has led to an "I pat your back, you pat mine" style of crony capitalism which Former IMF Chief Economic Simon Johnson called "The Quiet Coup" (TA 5/09).  It is no wonder that the only precedent for our present level of income inequality are the 1920's (source).

    How We Got Here The banking system didn't always used to be this way.

  • In the "roaring 20's" we had a universal banking model with banks more focused on deal making and advisory.  We had high banking concentration. This created obvious conflicts of interest. 
  • After the crash we separated commercial banking from investment banking.  *We broke JPM into 3 pieces*, and the financial system as a whole disaggregated.  
  • In the 1980's we began the path towards the repeal of Glass Steagall by allowing commercial banks to get 25% of their revenues from investment banking.
  • Banking concentration is now as bad or worse than the 20's (source), but even worse than before, (1) investment banking's focus has shifted to *proprietary trading* *gambling* with their capital base, and (2) they have used way, way more debt than ever before (source).  

So those who say this is as unsound as we were before the Great Depression are wrong - it is worse.  I am still scratching my head as to why the formerly utility-like institutions that collect deposits and extend loans are now gambling - aggressively - with our backstop.  

The Response Has Been to Make the Oligopoly Even More Monopolistic What has our response been?  

  • We have made investment banks into commercial banks, putting them under the safety net of the FDIC with our money. 
  • We have removed pricing transparency from bank balance sheets.
  • We have put a bullet in the head of 2 major competitors in what was already an oligopolistic environment, Lehman and Bear.  
  • We have further consolidated the industry by having the big merge and acquire the big - BofA with Merrill and Countrywide, PNC with National City, Wells with Wachovia, JPM with WaMu.
  • We have committed literally $10.5 trillion to save the banking sector (CNN).  This is almost exactly the same as the after tax income of our entire country in 2008 of $10.6T, adding back all income supplements and rents (BEA)!  The Fed, one of the biggest providers of these commitments, will not tell us what they own or how much they paid (I wonder why).
  • Goldman now receives additional income to do program trading as an "SLP" (is it the only SLP?), and recently was almost 60% of all program trading (source) in the entirety of the NYSE, overwhelmingly (90%+ recently) for themselves through "principal volume" (source).

The already oligopolistic financial services industry just got more so.  Big time.  At our expense.

Our Economic Backdrop Is As Weak As Can Be I am not making this up.

  • After Q2 2009, our GDP decline will be worse than anything since the mid 40's (CR).  
  • Unemployment properly measured (sourcesource) is well worse than at least the last big recession in the 80's right now.  The BLS changed the definition of "unemployment" in 1994, and ever so mysteriously, the BLS's "Median Weeks" began diverging from the official U-3 unemployment figure.  
  • Youth unemployment is at a record low (source). 
  • 11.1% of every single man, woman and child in this country is now on food stamps (source), a record high in the history of our country.  And there was basically zero recovery by this metric after the last downturn.
  • Loan delinquencies and charge offs of all stripes are setting all sorts of new records (sourcesourcesource). 
  • Consumer credit has only just started to come down (FRB), but it is exerting an asymmetric effect on spending which has caused our record high debt to GDP (source) to go into "phase transition" ascending mode (source).

And with this as the economic backdrop, Goldman Sachs, a bank, is doling out bigger bonuses than ever in their history, due to "trading profits".

This Is Untenable We will not have a durable recovery until balance is restored to our economic and political system on many levels.  Instead, we have retrogressed.  I am sure many of these people mean well, but the direction we are going in simply is not going to work. We need to reorient ourselves more towards the real economy.  If we don't, I would truly be concerned that we will have an eventual loss of confidence in the dollar, riots, and possible war over the next 20 years.
These are huge issues.  As a first step though, I think the only way we will make progress is by acknowledging the issues and talking them over.  How about it?