Using Veritas to Construct the "Per…

29-04-2017 Hits:87211 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:81129 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:80971 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:85445 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:81943 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:84131 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:55194 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:83389 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:83130 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:83019 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:89278 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:86993 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 following is an interesting letter that I received from one of my many astute subscribers. He brings up the valid point that once management is allowed to exercise imprudently wide discretion in terms of disclosure (and by extension, opinion on valuations), then investing in the US public equity markets becomes essentially a widespread, electronic form of Vegas slot machines. Keep this in mind as I prepare to release my findings on JP Morgan (see the questions I raised about their derivative exposure here: (Why Doesn't the Media Take a Truly Independent, Unbiased Look at the Big Banks in the US?) to subscribers, with a few freebies and tidbits to the general public as well. 

Letter from a concerned reader (I haven't' disclosed his name, but he is free to reveal himself in the comments if he wants to): 

Reggie:

Based on some recent research, it is clear that a small loan for $225 million from Goldman Sachs was the proximate cause of GGP's bankruptcy.

Here it is.  Goldman made the loan on 10-8-2008 with GGP pledging various Columbia, MD properties as collateral. The collateral was released on May 15, 2009. I pieced this puzzle together from the Q 4 10-K referencing the $225 m Goldman loan (pdf GGP Q4_10k 08/09/2009,14:10 65.99 Kb), a 2-4-2009 WSJ article discussing the loan (Loan Deadline Passes for General Growth - WSJ.com), the Q2  2009 10-k cash flow statment (pdf GGP_Q2_10k_cashflow 08/09/2009,14:09 480.58 Kb) showing the funding of the DIP loan and the takeout of the Goldman loan evidenced by the deeds of trusts (GGP Goldman Deed of Trust GGP Goldman Deed of Trust 2009-09-08 14:03:23 2.08 Mb) and releases of the collateral (Goldman GGP Release Goldman GGP Release 2009-09-08 14:06:07 63.08 Kb). In addition, the forbearance agreement reached in April 2009 required GGP to disclose the terms of Goldman loan agreement.

Reggie, the inescapable conclusion is that this loan was the time bomb that blew up GGP. How else can one explain their takeout with the DIP facility. This loan has never been disclosed.

Frankly, this is post-mortem non-actionable intelligence. For me this Goldman loan deal is an excellent example of excessive management discretion in defining a "material definitive"
event. In this case, management deemed that a $225 million loan was "immaterial" and elected not to disclose the terms of the deal.

Six months later, the loan comes due with the lender apparently threatening Armageddon, successfully I might add, with the loan getting taken out in May with funds from the DIP line.

Also, attached, please find a copy of a letter from the SEC regarding the Bucksbaum Trust loans to the officers to cover margin calls (pdfSEC_letter_re:_o d_loans 08/09/2009,14:20 19.74 Kb). So far, I have not located their reply. For those that haven't been following the blog for long, we found evidence of these issues over a year and a half ago, and plainly stated our concerns years before the lawuits were even considered. See "We did find some surprises, and my blog readers chimed in with their expertise and opinions..."

This failure to disclose is a real issue. How can anyone make informed investment decisions when management is withholding critical agreements that impact directly on the solvency of the Company.  

I would like everyone to keep that last thought in mind as we parse through JP Morgan's (the so-called "most respected commercial bank on the street") deep dive next week. 

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