Using Veritas to Construct the "Per…

29-04-2017 Hits:87100 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:81042 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:80878 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:85351 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:81858 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:84041 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:55090 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:83287 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:83034 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:82930 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:89168 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:86904 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 CNBC :

NEW YORK (Reuters) - Shares of Lehman Brothers fell by nearly 10 percent in early New York trading on Thursday on rumors that the fourth largest U.S. investment bank could see a run on the bank similar to what happened to Bear Stearns, traders said.

Declines in Lehman's shares on Thursday are "all being tied to fears of Bear Stearns," said Robert Bolton, head trader for Mendon Capital Advisors in Rochester, New York. "Does another broker dealer go the route of Bear Stearns with regard to their solvency and the like."

A Lehman spokeswoman called the rumors "totally unfounded," which contributed to the stock taking back much of its losses. Hey, isn't that what Bear Stearns said right before they were going to declare bankruptcy? Do you remember the "Short me, Please!" phrase?

Kerrie Cohen, a spokeswoman for Lehman Brothers, said, "There are a lot of rumors in the marketplace that are totally unfounded. We are suspicious that the rumors are being promulgated by short sellers of our stock that have an economic self interest." Hmmm... Is that your viewpoint when positive news about your stock is circulated and your stock rises, like last week? I suspect that rumors were being promulgated by long buyers of your stock that had an economic self interest! Let's not cast aspersions, since that can easily cut both ways. As a short seller of your stock, I am a bit sensitive.

At midday, Lehman shares were down 4.28 percent at $40.67 on the New York Stock Exchange, after falling as low at $38.36.

The U.K.'s Times reported on March 19 that the U.S. Securities and Exchange Commission (SEC) was probing whether hedge funds and other market players deliberately circulated false rumors about Lehman Brothers to push the company's shares lower. Which is cool, as long as they extend the investigation back to last week when the stock popped as well, looking for pump and dumpers. The macro and micro environment for these companies are extremely negative, performance and fundamentals are quite negative, and the outlook for the medium term looks bleak, with the threat of regulation for the long term. It makes much more sense for the stock to move down, rather than up. It bothers me when the government and the media (ala CNBC, et. al.) condone the pump and dump, but when valid concerns about fundamentals and macro trends arise there is all of a sudden a mass conspiracy.

Investors have been skittish about investment banking shares since the middle of the month when Bear Stearns Cos Inc experienced a run on the bank amid fears that its mortgage exposure could leave it insolvent. Schwartz's statement right before his bank's collapse would be enough for anyone in their right minds to be concerned when Lehman decries the "Short me, Please!" phrase.

Other traders, who declined to be identified, echoed Bolton's assessment for the reason behind the drop in Lehman's shares. In addition, large bearish bets on Lehman in options markets contributed to selling pressure, some traders said. I'll have to admit that my position is not as large as it should be yet. It is larger than it was, but it hard to build a truly worthwhile position with the puts as expensive as they are, excessive IV.

Lou Brien, a strategist with DRW Trading Group in Chicago, said there had been a rumor on Thursday that Lehman was close to making an announcement, which contributed to the shares selling off, but the announcement proved to be about the bank hiring a new co-head of global institutional distribution, after which shares recovered.

Lehman Brothers a decade ago derived an outsized proportion of its earnings from the U.S. bond market and has long been an active player in mortgages, leading some investors to argue the company could be devastated by the credit crisis. But Lehman's business is much more diversified than it was in the 1990s, and the company has not posted any net losses during the credit crunch. The mere fact that they are so susceptible to risk rumors means that they are a risky bank. This is common sense. Who wants to rely on them as a countery party when they have to make an announcement every week to defend themselves against said "promulgators" as their share price drops 10%, 20% 40%, 50% and then pops up for a 20% run to fall back down 12 to 15% again - in just two weeks. Lehman's stock currently sports 195% volatility. That's more than on the options of many hot trading and gossip stocks like the homebuilders. Beta, risk, volatility, deviation from expected return, whatever moniker you want to slap on it, the shares of this company have grown quite risky, reflecting the risk premium the market has slapped on their business. Founded or not, it is there. Is it even worth the risk dealing with them? Who want's to be the huckleberry to find out?

Since Bear was forced to announce plans to sell itself to JPMorgan Chase & Co on March 16, the Federal Reserve has allowed investment banks to borrow directly from the central bank, in a move designed to shore up the financial system.

In an e-mailed statement on March 17, Lehman Chief Executive Dick Fuld said the Fed's creation of a liquidity facility for primary dealers "from my perspective, takes the liquidity issue for the entire industry off the table." If things keep going the way they are, Lehman will be the first to put Mr. Fuld's theory to the test.

Lehman said on March 18 that its holding company has $34 billion of assets it could easily sell, and another $64 billion of assets it could borrow against. Regulated subsidiaries have another $99 billion of assets it could borrow against. Hmmm... "easily sell". That's the problem with liquidity. When you have liquid instruments, liquidity is always there - until there is a dearth of liquidity and you really need to sell them.

Japan is trading down, allegedly due in part to Lehman liquidity concerns. There would be much less gossip and innuendo if Lehman didn't hit the discount window the second it was available. See Wall Street Firms Borrowing Heavily From the Fed

Big Wall Street investment companies are taking advantage of the Federal Reserve's unprecedented offer to secure emergency loans, the central bank reported Thursday.

Those firms averaged $32.9 billion in daily borrowing over the past week from the new lending facility, compared with $13.4 billion the previous week. The program, which began last Monday, is part of the Fed's effort to aid the financial system.On Wednesday alone, lending reached $37 billion.

On a seperate, but related note, I may be bringing the blog analysis over to Europe. Lehman forcasts a 35% chance of recession in the UK and a drop in the official rates from the BOE. The UK and eurozone banks are doing as bad as the US banks, if not worse. The pound is due for a pounding as well, both against the dollar and the euro. So, if the financial stocks rally against the fundamentals ala the US financials, I will start my shorts over there as well. I will be doubly as speculative, but the potenial return is worth the risk in my eyes.