Using Veritas to Construct the "Per…

29-04-2017 Hits:88379 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:82106 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:81986 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:86485 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:82929 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:85060 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:56156 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:84382 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:84097 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:83966 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:90428 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:88000 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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Readers can now see the popular media and ratings agencies chime in to what I have been alleging since late last year. The investment banking industry, as a whole, is entering steep cyclical decline. From the Wall Street Journal :

S&P Flags Goldman, Lehman

Standard & Poor's, in a continuing sign of loss of confidence in investment banks' profitability, Friday put Goldman Sachs Group Inc. and Lehman Brothers Holdings Inc. on negative outlook, lowering them from stable.

Although S&P didn't change the senior-debt ratings from AA-minus for Goldman and A-plus for Lehman Brothers, it brought its view of the likelihood of a precipitous decline in profits at the Wall Street firms during the next two years to the same negative levels it previously assigned to Merrill Lynch & Co. and Morgan Stanley.

The changes in the ratings outlooks are appropriate despite the fact that recent actions by the Federal Reserve have instilled confidence in the capital markets, S&P added.

"We believe that negative rating outlooks are broadly appropriate for the independent securities firms, reflecting the potential for a more substantial decline in profitability from capital-market activities," S&P said in a report whose principal authors are managing director Scott Sprinzen and analyst Diane Hinton. "Our current expectation is that net revenues could decline 20%-30% year-on-year" after write-downs. The banks are relying heavily on proprietary trading and asset management to prop up losses in capital markets and M&A. As the bear market really kicks in, there is generally an outflow from money management firms and operations. In addition the amount of leverage, market risk (Ex. the GS Global Alpha quant debacle), and particularly credit risk assumed by these firms (Morgan Stanly in particular) portends a blow up coming to a town near you! 

S&P previously said rating downgrades would be likely if it believed companies' balance sheets were being overloaded with assets that were deteriorating in value. Investment banks have written down more than $100 billion of securities and loans since the middle of last year and are still finding it hard to sell the assets to large investors. Investors will become more risk averse as the value of theses securities and loans drop even further. Reference the research in leveraged and high yield loans from my pdf  Assured Guaranty consolidated analysis , media reports on CMBS, RMBS, residential real estate and the financing backing its construction, foreclosures, and my very extensive opinions and analysis on the commercial real estate sector

The ratings firm said that, even with the likely 20% to 30% decline in profitability that would erode banks' "margin of safety," it expects to sustain current debt ratings because the Fed last week said investment banks can now borrow at lower rates against some of their battered securities. Yes, the Fed has altered the playing field and caused me to modify my investment thesis. Keep in mind that it is modified, not revamped. The core thesis remains the same. Insolvency. What the Fed has done was injected massive amounts of liquidity to forestall cash flow insolvency, but balance sheet insolvency is beyond the Fed's control even if they were to open up it's wallet to the fullest extent possible

"Nonetheless, we see some possibility, were there to be persisting capital-markets turmoil and sharply weakening economic conditions, that financial performance could deteriorate significantly more than we now assume, which would call the current ratings into question," S&P said. 

The company downgraded Merrill Lynch's senior debt to A-plus on Oct. 24 and put Morgan Stanley on CreditWatch with negative implications on Dec. 19. Morgan Stanley's senior debt is rated AA-minus.

The "virtual collapse" of Bear Stearns Cos. last week "highlights the extent to which securities firms are exposed to capital-market sentiments and explains the Federal Reserve's actions to support the U.S. securities industry directly," S&P said. The Fed arranged for J.P. Morgan Chase & Co. to buy Bear, which S&P rates BBB (Whaaattt!!!!?? I just can't resist taking a poke at this. So, exactly what does it take to get a junk rating out of S&P? Let's see here... Ambac is AAA, Bear Stearns is investment grade. Okay, I get it. You have to lose a lot of your shareholder's money to stay in this in this club. I have no shareholders, but I am sure I made somebody some money somewhere, somehow. How do you rate BoomBustBlog.com? Super Duper Senior AAAA? Come on, please... I know I haven't paid you yet, but the check is in the mail), at $2 a share and guaranteed the bank against $30 billion of losses on Bear Stearns's problem assets.

Think about this. S&P rates BSC at BBB (above junk), while the market rated BSC at the lowest junk possible which precipitated the run on the bank, bankruptcy and corporate death are knocking at their door, and shareholders were gifted with 95% drop in thier share price!!! Wouldn't it be real cool if you had a service that actually proactively rated these companies and events, and called for a negative rating BEFORE you lost all of your money? I really wonder how much such a service would cost if it actually existed?

Come on S&P! If I can do it, you can do it. First, perpetually increasing housing price appreciation, then extremely optimistic MBS default rates coming off the top of the mother of all bubbles, then AAA subprime (isn't that an oxymoron?) CDO tranches, followed by these AAA monolines (losing 90% of their share price value in a few months paying 14%, super junk rates on their AAA paper) and now the investment grade insolvent investment bank !!! I bet you charge a whole lot more than I do for this blog. Really, I betcha...

Word is, you detectives very recently reaffirmed your quite tardy sell recommendation on Bear Stearns. I have to admit that I am intimidated at tiimes, not being as smart as some you rocket scientists. For instance, I always wondered, "what purpose is a sell recommendation AFTER THE STOCK HAS ALREADY FELL TO NEAR ZERO!" 

When I get the chance, I'm going to mark the ratings agencies to marketYell

On a related note, the SEC is contemplating have the ratings agencies reveal potential conflicts of interests. I query, What conflicts of interets may you be referring to?

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and then....

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 Ohhhhh. That conflict of interest.