Using Veritas to Construct the "Per…

29-04-2017 Hits:87246 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:81160 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:81006 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:85476 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:81976 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:84158 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:55222 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:83424 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:83162 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:83053 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:89312 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:87025 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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I was reading a post by George Washington over at ZeroHedge that actually spurred the following rant. An excerpt reads:

The Telegraph notes:

The former US Federal Reserve chairman told an audience that included some of the world's most senior financiers that their industry's "single most important" contribution in the last 25 years has been automatic telling machines, which he said had at least proved "useful".

Echoing FSA chairman Lord Turner's comments that banks are "socially useless", Mr Volcker told delegates who had been discussing how to rebuild the financial system to "wake up". He said credit default swaps and collateralised debt obligations had taken the economy "right to the brink of disaster" and added that the economy had grown at "greater rates of speed" during the 1960s without such products.

When one stunned audience member suggested that Mr Volcker did not really mean bond markets and securitisations had contributed "nothing at all", he replied: "You can innovate as much as you like, but do it within a structure that doesn't put the whole economy at risk."

He said he agreed with George Soros, the billionaire investor, who said investment banks must stick to serving clients and "proprietary trading should be pushed out of investment banks and to hedge funds where they belong".

It is not just George Soros.

 

Nassim Nicholas Taleb has repeatedly said that speculation should be limited to hedge funds, and that banks should solely engage in traditional depository functions, and - because of their power to create credit - be treated as public utilities.

Many other top economists and financial experts have said that financial innovation is harmful, and have called for reimposing Glass-Steagall and for separating traditional banking from investment banking.

What got me started was the use, and misuse, of the term "innovation".

It is not financial innovation that must be curtailed. Innovation, in and of itself, is a very good thing. The issue currently at hand is that  it was not financial innovation that got us into this mess. It was fraud innovation. Financial engineers attempted to create methods of circumventing regulations, laws, prudent risk management, common sense and mean market returns. For instance, taking $100 million of junk status mortgages and creating $300 million of so-called AAA exposure out of it (MBS, CDO's, CDO cubed, credit lines supporting CDO's, CDS protecting the CDO exposure. etc. - all from a simple mortgage that no one thought would be paid in the first place). That is not innovation, that is called LYING! It was thinly veiled fraud. This lying, in turn, was labeled "innovation", which it absolutely was not, and the moniker has been carried on in the media ever since.

Innovation is the personal computer! Innovation is the smart phone! Innovation is mapping the human genome! Innovation can be found in stem cell research! Innovation is discovering new ways of human learning and social interaction. All of these examples of innovation make society more productive, and more efficient. It harms none but those who would be relegated to the annals of obscelence anyway. But CDOs and credit defaults swaps as innovation!!! I'm afraid not. I bitched about this as far back as two years ago in "Welcome to the World of Dr. FrankenFinance!" There are forms of finance that are innovative, but they have nothing to do with the current malarky.

Then we have "the Great Global Macro Experiment", in which today's central bankers can be likened to mad scientists. The reflexive relationship between private sector bankers' (the Frankenstein monster's) faux "innovations" and their public sector "mad scientist" (Dr. Frnakenstein) counterparts will destroy the developed economies as we know them unless this ridiculous boom/bust cycle is put to an end. The quickest and most efficient way to do that is to let overpriced bubble assets deflate in due course and have the markets reflate them naturally based on fundamental  values and stable macroeconomic conditions - and NOT through artificial (hence unsustainable, causing another boom/bust cycle) boosting of risky asset prices and synthetic suppressing of market rates in order to stimulate unsustainable demand that would have been there in a sustainable fashion in the first place if risky asset prices were allowed to deflate.

Yes, I know it's a run-on sentence, but why stop when I'm amped. I also know why the mad scientist central bankers will not let the Frankenstien assets properly correct. If they do, then it will throw the existing oligarchy off of their perch. I have dedicated several posts to this socio-economic stratification dilemma that is known as class conflict. See "You've Been Bamboozled, Hoodwinked and Lied To! Here's the Proof. What Are You Going to Do About It?" for an example of exactly what I mean. That is why the media preached "the world is coming to an end" in 2008. Read my blog. I predicted the series of events that led up to the meltdown quite accurately, and publicly (look here for the proof). Take it from someone who demonstrated that they saw what was going on well in advance. THE world was definitely not coming to an end. THEIR world was coming to an end. MY world was just experiencing a much needed, albeit a very serious, and well telegraphed correction, in the form of a near depression that would have wiped out most of the unproductive financial and (dare I utter it) intellectual capital to make room for the stuff that would move us into the next phase of productivity for the new millenium.

The "mad scientists" have prevented that cleaning of the house, and here we are now - most likely about to hit that depression-like correction anyway, and having wasted trillions of dollars of taxpayer financial capital in an attempt to save an unproductive oligarchy to which I do not belong.