Using Veritas to Construct the "Per…

29-04-2017 Hits:88367 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:82097 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:81978 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:86477 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:82921 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:85051 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:56148 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:84374 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:84087 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:83959 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:90420 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:87992 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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This is an unconfirmed, yet interesting email from a reader:

A bond fund closed down yesterday and it brings up another interesting dilemma that few people if anyone wants to address, including the SEC and that is the public mutual funds that have invested in structured mortgage debt.  Many, and I do mean many fund managers are very well aware that their holdings are incredibly overstated in value, yet they do not challenge the pricing companies that evaluate their holdings, unless they view the asset in question to be marked to low.


 A case in point is the Evergreen Ultra Short Fund, which just closed this week.  Yes the fund is paying off it’s shareholders at $7.48 a share, or yesterday's net asset value.  What was yesterday’s net asset value?  Great question.  Just recently one of the fund mangers was offered a bond, which is a matching position to current holdings at a price of 23, that is 23 cents on the dollar.  Great value yet the fund manager was in a pickle and decided against purchasing the bond at such a cheap price.  Why?  As the fund manager said it would create an issue with his mark on the bond that was currently being carried at a dollar price over 95, or 95 cents on the dollar, yet at that point he knew what his bond was worth, yet choose not to challenge the pricing service and it’s assigned value.  The bond ended up trading that was offered to the Ultra Short fund manager to another account at a price of 9.  The buyer was Tattersall, another subsidiary of Evergreen, yet the bond at Ultra Short was not remarked to the downside.

 

This is happening with a great deal of regularity and is not being reported to the public, yet the public is the one who are at risk.  The fund manager is not rewarded to be truthful and the SEC does not seem to care much about the current environment and protecting the investor.  The losses that will be incurred could very well match or exceed the bank write-offs, after all who bought all those bonds over the last 3 to 4 years that the street has been selling.  Not just hedge funds, that is for sure.

 

I just thought you might be interested in this story, as I believe it will be a more common occurrence over the next several months.  By the way, it looks like Wachovia will be financing the liquidation of the Ultra Short Fund and I would be willing to bet that the liquidation in the end will cost them a pretty penny.  The values of many of the underlying holdings are severely mis-marked and when they finally end up selling all the paper it may very well cost them over $100 million, in my estimation.  If the Bear Stearns hedge fund managers were charged with crimes then many of these managers are also looking at fraud or gross negligence because they know where paper is trading yet continue to let values on their books be reported as very inaccurate prices.  The list is very long indeed. If this fund is down 18% this month it is not like the values of the underlying securities just dropped that much in June, no that is not the case.  The fund managers were backed into a corner and no longer could hide the losses is my guess.  Just another corner of the world that is lying about value.

 

Good luck and keep up the nice work.

 

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