Using Veritas to Construct the "Per…

29-04-2017 Hits:88575 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:82261 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:82155 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:86650 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:83081 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:85203 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:56307 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:84534 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:84241 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:84101 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:90591 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:88162 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 persuing my list of favorite blogs and came across this quote from Calculated Risk .

" And until market participants regain confidence in asset price, Feldstein argues Fed policy might be ineffective:

Monetary policy may simply lack traction in the current credit environment.
...
It is not clear what can bring back the confidence in asset prices that is needed for credit to flow again. Some analysts suggest that confidence would return if the financial institutions declare the true market value of their assets by restating balance sheets at the depressed prices at which they could be liquidated today. But this is not a practical solution, since many complex securities are no longer trading in the market. Forcing an actual sale of these securities at fire-sale prices in order to establish market values could also create unnecessary bankruptcies that would further impede credit flows.
"

Now, I must say I disagree with this. Many of the illiquid derivative assets that currently have no market will, in the future, be illiquid derivative assets that have no market. Delaying the marking to market merely delays the inevitable."As I have said earlier today, the majority of these "assets" were written during a the peak of one of the largest liquidity driven credit bubbles of our time, on the underlyings whose prices were peaking during the largest real asset and corporate expansion bubbles ever.

The bubbles have popped, and markets are reverting to mean. These assets and the derivatives written on top of them are not going to return anywhere near those levels for at least 7 to 12 years. Just think of the NASQAQ and the dot com bubble burst in 2000. It is now 2008 and have we fully returned. If you hold this bubble stuff, for all practical intents and purposes, you are effective underwater. If the leveraged amounts you are holding surpasses your equity by X%, you are insolvent and there is really no way around it. Liquidity cannot cure insolvency!

 

This goes for the management of the monolines who swear that market prices are not indicative of future losses. Whaaaaaat!!!!??? Someday, there will be some business students in an ivy league b-school class reviewing the monolines as a case study, saying "What the hell were they smoking?". This also goes for the big commercial banks like Citi who don't want to liquidate thier special purpose vehicles due to the mindset that the market is "mispricing" thier assets. The market is the price, silly. You are mispricing your assets. I can go on with the investment and mortgage banks, but I think you get the message. Once you buy, or create, something at the top of an asset cycle, the only direction to go is down. You can wait as long as you want, the top is the top and will be the top no matter how long you wait to sell unless you desire to wait till the top of the next asset cycle. Who knows how long that will be? I know it will probably be a long time for the real asset and credit markets, 'cause this asset cycle was a doozy.