Using Veritas to Construct the "Per…

29-04-2017 Hits:85773 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:80003 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:79864 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:84342 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:80884 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:83130 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:54140 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:82264 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:82117 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:81985 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:88010 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:85884 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

As far back as February I warned on the impending risks building up in the US I banks. From excessive counterparty and credit risk to imperfect hedges to dead and depreciating assets held off balance sheet:

 

Well, it looks like this quarter the chickens will start coming home to roost. Lehman, Goldman and Morgan Stanley have experienced (on a larger scale) similar issues that I have with my portfolio, albeit potentially with a less profitable outcome. Reliance on indexes really cannot serve as a true proxy for the actual underlying, and significant slippage is bound to result. That is why I don't use them. Now, I understand indexes may be easier when you are moving a few billion dollars, but where there is a will there is a way. I prefer to either deal direct with the underlying or with an exchange traded derivative of the underlying. See the following WSJ article.

Trouble Hid in the Hedges Wall Street Loses On Bets Made As Safety Valves By SUSANNE CRAIG May 21, 2008; Page C16 Just as they were emerging from their bunkers after a dismal first quarter, some of the big Wall Street investment banks got ambushed. That could lead to another round of losses when the second quarter closes next week. The bad news comes from the hedges the banks have used to offset losses in real estate and other securities. These hedges, where the brokers bet against indexes that track markets such as real-estate securities and leveraged loans, have helped limit losses over the past year. The profits the firms made by betting against the indexes offset some of the declines in value for other investments. But since the market bottomed in mid-March following the collapse of Bear Stearns Cos. (in the process of being acquired by J.P. Morgan Chase & Co.), some of these hedges came unglued. In some cases, indexes such as the CMBX, which tracks the market for commercial-mortgage-backed securities or loans, rallied as much as 50%, while the securities the banks were hedging rose much less, or in some cases fell in value. The biggest loser by far appears to be Lehman Brothers Holdings Inc., where losses from both write-downs on assets and ineffective hedges will likely range from $1.5 billion to $2 billion, according to some analysts. Lehman Brothers had about $36.1 billion in commercial-real-estate loans and securities on its books at the end of the first quarter, and $17.8 billion in leveraged loans. Last week at a conference hosted by UBS analyst Glenn Schorr, Lehman Brothers Chief Financial Officer Erin Callan said some of the firm's hedges have become "counter productive" or are actually losing money. This is a far cry from a few months ago, when, she says, the firm's hedges were about 70% efficient, meaning that for $100 it lost on one side, it would recover $70 with the hedge. Analysts say Morgan Stanley will be more affected than Goldman Sachs Group Inc. and Merrill Lynch &Co., but its losses related to ineffective hedges and write-downs will be less than half of what Lehman is looking at. Morgan Stanley was sitting on some $23.5 billion in commercial-real-estate securities at the end of the quarter and another $15.9 billion in leverage loans. At last week's conference, Morgan Stanley CFO Colm Kelleher declined to provide details on the firm's losses this quarter but played down the issue, noting the firm has been selling its holdings in many of the affected asset classes. Goldman has substantially less commercial real estate on its books. However, it had $27 billion in leverage loans, more than any other rival, and analysts expect it will post some losses on its hedges on this portfolio. To be sure, the hedges could start working again and some of the losses that are being booked now could turn into gains. Even if that proves true, a new round of losses, albeit smaller than in quarters past, does little to help rebuild Wall Street's reputation for managing risks.

 I have written that MS's and LEH's latest quarterly reports were nothing but P, marketing and smoke and mirrors. LEH actually took an economic loss for the quarter, yet reported an accounting profit.