Using Veritas to Construct the "Per…

29-04-2017 Hits:84626 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:79093 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:78938 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:83426 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:79991 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:82298 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:53273 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:81302 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:81303 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:81110 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:86965 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:84982 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 GGP story seems to go on forever.  Hat tip to CK for pointing this one out to me. For those that do not know,  I shorted GGP in late 2007, after exhaustive research and it took a year to fully pay off. When it did hit, it hit big - from $60 to bankruptcy. I also found some interesting tidbits along the way as myblog readers chimed in with their expertise and opinions...

Well, a year and a half later Mary Buscksbaum, the GGP heiress is finding out the hard way that those hardcore investor/bloggers actually tend to have some very valid points.

 From the AM LAw Daily :

Shopping Mall Heiress Sues Neal Gerber, Alleging Massive Misconduct

Posted by Zach Lowe

The daughter of the founding family of General Growth Properties has filed a monster lawsuit against  Neal, Gerber & Eisenberg, alleging the Chicago-based firm created a bewildering mix of investment vehicles through which they mismanaged her trust fund--costing her at least $300 million. 

Schiff Hardin is representing the plaintiff, Mary Bucksbaum Scanlan, the 40-year-old daughter of Martin Bucksbaum, who co-founded the real estate empire that peaked with the creation of General Growth Properties. (General Growth, which bought up malls all over the country, filed for bankruptcy in April).

Neal Gerber has been the family's go-to law firm for nearly 40 years, with name partner Marshall Eisenberg handling much of the work, the suit says. During that time, the firm managed Mary Bucksbaum's trusts and created  an investment vehicle, General Trust Co., that served as an overall corporate trustee for the various family trusts. Eisenberg and others close to him were also major stockholders of General Growth, the lawsuit says.

 

The overlapping interests created untenable client and personal conflicts, the suit says. Eisenberg and Earl Melamed, another partner at the firm, crafted transactions that sucked money out of Bucksbaum's personal trusts in an attempt to benefit General Growth as it collapsed last year, the complaint alleges.

The suit accuses the lawyers of loaning $100 million to two General Growth executives to help them cover losses linked to General Growth's plummeting stock price. In addition, the lawyers had the trusts take out a $500 million loan from Citigroup in 2004 to fund more purchases of General Growth stock.

When that loan came due, they allegedly sold $300 million in assets from Mary Bucksbaum's trust to pay the loan down, the suit says. Those assets came from holdings other than General Growth stock, the suit says, including various safe bonds.

By selling $300 million in such assets, the Neal Gerber lawyers tied the health of Buckbaum's trust even more closely to that of General Growth--transactions made without Mary Bucksbaum's knowledge, the suit says. 

The lawyers continued to use Bucksbaum's trust funds to buy General Growth stock as late as the fall of 2008, when the company's stock price crashed to less than $2 per share. (It peaked at $67 per share in 2007). 

In all, Bucksbaum claims she has lost $1.7 billion from trusts that once held $2.5 billion. But the $300 million used to pay the Citigroup loan is at the center of the suit.

 

 

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