Using Veritas to Construct the "Per…

29-04-2017 Hits:93225 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:84502 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:84417 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:88975 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:87460 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:87270 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:58435 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:86804 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:86415 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:86771 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:93058 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:90401 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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From the WSJ:

Credit-Rating Firms Show Independence 

Are the mice finally roaring? The credit crunch showed that ratings firms missed huge swaths of risk embedded in the economy and markets. [Risks that many independent sources such as BoomBustBlog have routinely and regularly pointed out] But, recently, Standard & Poor's, Moody's Investors Service and Fitch Ratings have produced research or made decisions that exhibit an encouraging level of independence.

 Reggie Middleton;s Blog as Rating Agency Proxy?
  1. The Next Step in the Bank Implosion Cycle???
  2. You've Been Bamboozled, Hoodwinked and Lied To! Here's the Proof. What Are You Going to Do About It?
  3. The Truth! The Truth? Banker's Can't Handle the Truth!!!
  4. Bad CRE, Rotten Home Loans, and the End of US Banking Prominence?Why Doesn't the Media Take a Truly Independent, Unbiased Look at the Big Banks in the US?
  5. As the markets climb on top of one big, incestuous pool of concentrated risk...
  6. Any objective review shows that the big banks are simply too big for the safety of this country
  7. The ARE trying to kick the bad mortgages down the road, here's proof!
  8. Why hasn't anybody questioned those rosy stress test results now that the facts have played out?
  9. If a Bubble Bubble Bursts Off Balance Sheet, Will Anyone Be There to Hear It?
  10. If a Bubble Bubble Bursts Off Balance Sheet, Will Anyone Be There to Hear It?: Pt 2 - JP Morgan
  11. If a Bubble Bubble Bursts Off Balance Sheet, Will Anyone Be There to Hear It?: Pt 3 - BAC (the bank
  12. If a Bubble Bubble Bursts Off Balance Sheet, Will Anyone Be There to Hear It? Pt 4 - Wells Fargo
  13. If a Bubble Bubble Bursts Off Balance Sheet, Will Anyone Be There to Hear It? Pt 5 - PNC Bank
  14. A Must Read: An Independent Look into JP Morgan. This contains the "public preview" document (JPM Public Excerpt of Forensic Analysis SubscriptionJPM Public Excerpt of Forensic Analysis Subscription 2009-09-18 00:56:22 488.64 Kb), which is free to download.

If the trend continues, ratings firms could become a valuable counterweight to corporate management, Wall Street analysts—and even government regulators.[Isn't that what they were supposed to be in the first place????]

Take a recent S&P report that calculated the firm's own measure of capital levels at large banks. [He is referring to this article, "Banks' Capital Adequacy Ratios Need Improvement, S&P Says ", but hey, haven't I been saying that for quite some time while proffering significant analysis to buttress my opinion??? Here is an excerpt from that article, let me know if it sounds familiar in comparison to to the content in the side bar, "In its study, S&P took a swipe at widely-used measures of banks' health such as their tier one and leverage ratios, saying they are not consistently calculated or don't adjust for risks. "We do not believe that these two capital ratios, which are the most commonly used by market constituents, are sufficient to assess banks' risk-adjusted capital adequacy," S&P said. One difference between these measures and S&P's risk-adjusted capital model is the rating agency's inclusion of a higher capital charge against banks' trading books. Even after regulators move as expected to up these charges, S&P estimates its own model will still be significantly higher."]

Using its own approach, S&P calculated risk-adjusted capital ratios that were substantially lower than ratios determined by official regulatory approaches. This, of course, raises questions about the reliability of the official measures. [Again, old news. They should have been harping on this in 2007, as the better sources of alternative analysis had, ex. As I see it, 32 commercial banks and thrifts may see the feces hit the fan blades and Is this the Breaking of the Bear?] Granted, the widely used Basel II capital regime is being made stricter. But even after such changes, S&P's approach could still be tougher, the ratings firm estimates.

Moody's also caused a stir this month with research showing that banks face a high level of debt coming due over the next three years. And a separate Moody's piece on heightened credit distress at companies involved in private-equity transactions drew ire from the industry. Meanwhile, Fitch made few friends, and perhaps lost revenue, by declining to rate repackaged securitizations of Alt-A mortgages. It cited volatility in the amount of past-due loans.

Will the ratings firms continue in this vein? That partly depends on whether enough independent-minded people have been drafted into top positions...

Welcome changes could be entrenched and extended if a tough ratings-firm bill in Congress becomes law.

In easy-money times, investors will tend to ignore skeptical research. But if the ratings firms' new-found rigor had been in place in 2005, the credit bubble may not have become as dangerous as it did. [Yeah, tell me about it.]

There is a lot of ground for the rating agencies to make up for before they save face. Remember the monolines ( A Super Scary Halloween Tale of 104 Basis Points Pt I & II, by Reggie Middleton )???

click on any graph to enlarge it.

And then...

How about "Moody's Affirms Ratings of Ambac and MBIA & Loses any Credibilty They May Have Had Left" or Monolines swoon, CDOs go boom & I really wonder why the ratings agencies are given any credibility? Do you remember perpetual HPA (perpetual housing price appreciation) models from Fitch? If not, see Download a "Window" into Ambac's Problems. I could go on, but why?

I challenge the rating agency industry to take on the REITs next. The one that we are currently working on has more than half of its wholly owned assets underwater. When I mean underwater, I mean underwater. It has 100 plus LTVs and even those properties with no mortgages are worth less than they cost to acquire, yet they have investment grade ratings and are able to issue stock. Hmmmm...

I will be going into the REIT thing in detail in a later post.