Using Veritas to Construct the "Per…

29-04-2017 Hits:85879 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...

Read more

The Veritas 2017 Token Offering Summary …

15-04-2017 Hits:80095 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.

Read more

What Happens When the Fund Fee Fight Hit…

10-04-2017 Hits:79952 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...

Read more

Veritaseum: The ICO That's Ushering in t…

07-04-2017 Hits:84432 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...

Read more

This Is Ground Zero for the 2017 Veritas…

03-04-2017 Hits:80971 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...

Read more

What is the Value Proposition For Verita…

01-04-2017 Hits:83205 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...

Read more

This Real Estate Bubble, Like Some Relat…

28-03-2017 Hits:54226 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...

Read more

Bloomberg Chimes In With My Warnings As …

28-03-2017 Hits:82353 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...

Read more

Our Apple Analysis This Week - This Comp…

27-03-2017 Hits:82194 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...

Read more

The Country's First Newly Elected Lame D…

27-03-2017 Hits:82062 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...

Read more

Sears Finally Throws In The Towel Exactl…

22-03-2017 Hits:88119 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.

Read more

The Transformation of Television in Amer…

21-03-2017 Hits:85974 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...

Read more

When the Lehman CLO story first broke, I jumped all over it for the bullsh1t that it really was. I was working with incomplete information, though. Here is a more complete vetting of the bovine excrement.

From the Greenberg Marketwatch blog:

“It’s a creative way for banks to get liquidity from assets they don’t want to sell at fire sale prices,” said one industry exec. Others called it “brilliant.”

Creative? Brilliant? The “C” word, as in “creative financing,” is what got us into trouble in the first place; it’s often another way of saying, “We’ve figured out yet another way to help you afford what you can’t.”

As for brilliant, one former head of asset-backed trading at a few big banks (whose name is being withheld to protect the innocent) says:

I think calling it “brilliant” is about the most jaded comment I have seen through this entire deleveraging fiasco. That’s like calling it “genius” for a teenager to have his Dad bail him out of jail after a drunk driving arrest by using a bail bondsman who only takes a 10% security deposit.

It used to be that banks were required to consolidate 100% of an issue on the balance sheet even if they held only a small “B” or first loss note. The rationale was that if you held the risk of the pool, even only, say $15 million of a $200 million issue, you had to show the entire balance as assets, because you still held the effective VaR (value at risk) of all of the loans, as nothing changed except your maximum loss, not your maximum probable loss (which is effectively the basis fo all bank risk management).

My point is that in a real world, if Lehman still holds the majority of the risk on balance sheet and merely has a loan against the balance, it doesn’t exactly warm the cockles to think they have somehow turned it into “cash (they) could use to finance its business.”

Like I said — dead end economic policy arbitrage. It’s actually kind of sickening. I wonder if the Fed would like to give me a non-recourse loan so I could go “finance my business” down in Atlantic City at the roulette table. I have a foolproof stochastic VaR model that predicts nothing but red numbers for a long time!

Of course, if it doesn’t go as planned, they can always blame it on the short-sellers.