Using Veritas to Construct the "Per…

29-04-2017 Hits:88591 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:82274 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:82168 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:86661 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:83094 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:85214 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:56318 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:84549 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:84250 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:84113 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:90608 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:88179 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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Let me be clear on how my common sense, outside the box mentality views this mortgage insurer mess as of now. I haven't revisited this in a while. A few facts:

  1. Bad debt is bad debt. It really doesn't matter if Moody's or Fitch downgrades or upgrades XYZ corp to AAA or CCC. If the market knows its junk (ex. paying 14% in a 7% interest environment like MBIA) then its junk. The companies trying to struggle to keep their AAA rating should be stuggling to prove they are not junk to the market. They are praying to the wrong gods.
  2. If any of the major mono cum multi-lines do split up and separate structured product from muni risk, the banks will be swamped with devaluations, and we will be taught the true definition of "writedown". Of course, this could just be a threat to the banks to have them pony up. Blackstone is a part owner of FGIC (the company that applied to be split) and they know their way around money. This is a quote from Dinallo (the NYS insurance commissioner) "``We will look at the business plan and we will see where it goes,'' New York Insurance Superintendent Eric Dinallo said in a Bloomberg Television interview today. ``Maybe just the filing of the application will invite capital in,'' he said. " Of course,  having insureds invest money into the insurers to save the insured portfolio defeats the purpose of buyign insurance in the first place. In addition, it doesn't technically qualify as insurance, since economic risk was not truly transferred in exchange for compensation. All you are doing is moving money from the right pocket to the left pocket. You are no safer or more insured for doing so. I went through this in my first post on the monoline industry.
  3. Everyone is focused on the muni industry and how safe it is, but I warned last year that the drop in revenue from housing related fees, income taxes, and the like will combine with the rapidly inflated budgets of the boom times to shock and surprise many who believe that muni debt is bullet proof.
  4. For those who remained focus on the muni side of this debacle, let me remind you that if Buffet buys the choice muni debt or the monolines are bifurcated, the CDS market will collapse faster and more violently than the subprime market. Hedge funds, investment/mortgage/commercial banks, and reinsurers will get slammed, and some of them may be gone for good. I have carefully positioned myself for such an occurence for it is inevitable in some form or fashion. The structured product insurance business in its current form is done for.
  1. I am amazed at just how many people ensconced in this industry still do not realize how much trouble it is in. A friend of mine who actually provides the legal support and structure for the industry seriously believes that Buffet's offer will help the industry. Huhhh??? I see it as the hari kari sword that Buffet has so generously offered. Buffet's plan is worse than the bifucation plan, because his would drive the whole company out of business for Buffet's gain. Not that there is anything wrong with that. I am all for capitalism, unless I was a monoline shareholder that is. At least the bifurcation plan would save some of the company. They both are the only ways to go for the municipal insureds though. The NYS Port Authority is now paying 20% on their monoline insured debt because of a downgrade, up from around 4%.
  2. No matter what happens, if the capital strained banks (who are severely hard up for capital, which is why they are accepting onerous terms from foriegn investors) provide capital, or the mono cum multilines bifurcate, or if Buffet buys out the muni risk for that "free profit": the structured product defaults will overcome the relatively anemic capital reserves that have been put in place against them.
    1. Those (ex. the banks) that took those risks and relied on a anemic structure to hedge will be forced to pay dearly. The reinsurers will get hit quite hard as well. The muni market will suffer in every scenario except bifurcation or Buffet's way. The shareholders will suffer in all scenarios. They will be more diluted than grandma's chicken soup sitting under a leaky faucet. MBIA is trying to raise the vast majority of what was their market capitalization. Bifurcation will kill whoever holds the structured product company stock. We all know what Buffet has in mind for the industry: Mine! Mine! All Mine! This my attempt at recreating that Bugs Bunny and Daffy Duck scene where they found all of that buried treasure.