Using Veritas to Construct the "Per…

29-04-2017 Hits:85781 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:80009 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:79869 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:84347 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:80888 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:83135 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:54146 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:82269 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:82121 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:81990 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:88015 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:85890 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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As some may have gathered, I may getting increasinly busy, thus may not be able to get to all emails and comments. No need to fret though, we have some of the brightest, and capable financial minds in the blogoshere wafting through these vitual annals. I've noticed the various experts in their respective fields, analysts, traders, money managers and ultra high net worth inverstors have more than taken up the slack. Thank you.

For those who may be wondering about my shorts, stay calm. I've grown to become pretty good at this stuff. Don't look at Amex as what you think they do, look at them for what they actually do. As one astute commenter pointed out, their debt to equity ratio has skyrocketed in an attempt to gain rapid fire growth, their credit risk is significant, and their core business market is being wrecked by the current economic hard landing. Did I mention the credtit risk that they were exposed to?

When AXP ended up on my short list, I smiled wide. A virgin short, that most would not see until it was too late. Oops, I better keep quite until I have fullybuilt up a position.

 

The run has started on Lehman again according to the rumor mill.

    FreddieMac is set to sell $3bn on short-term debt on Monday. Secreatry Paulson is working on plans to inject up to $15 billion into F&F at highly dilutive terms for current shareholders. Paulson and Bernanke are apparently on a mission to prove that they are not the barons of moral hazard by purposely punishing the risky taking investors in failed companies. I agree with this stance, for the Bear Stearns equity investors got more than they probably would have recieved from the market in a conventional dissolution - all thanks to Fed subsidies. The leaves a black eye on the credibility face of the Fed.

  • In a recent Lehman Brothers report: If FAS 140 change goes through requiring to put off-balance sheets items back on books, Fannie Mae would need to add $46 billion of capital and Freddie Mac would need about $29 billion, although companies will probably get an exemption from the rule--> stocks plunge around 20%, agency spreads over Treasuries highest since March 13 (=benchmark for prime mortgages); CDS on both F&F above 200bp. Let me be clear on this, F&F ARE the mortgage market now. Most other banks have stopped writing much of the non-conforming stuff, and the conforming stuff is written due to the F&F liquidity put. If F&F slow down to any signficant degree, housing values will plummet significantly. 
  • William Poole of the St.Louis Fed recently stated the obvious (and what I have been alleging about banking concerns since last year): INSOLVENCY -"Freddie Mac owed $5.2 billion more than its assets were worth in the first quarter, making it insolvent under fair value accounting rules" i.e. if assets and liabilities were marked-to-market--> Lockhart (OFHEO), May: By Q1 2008, FannieMae 'fair value' Tier 1 capital ratio at 0.4%, and -0.2% for FreddieMac - These numbers are ridiculous and obvious take into consideration implicit government backing
  • James Lockhart (OFHEO): "F&F are adequately capitalized wrt regulatory requirements" which are not mark-to-market but historical cost. Hey, I historically had a couple million extra dollars lying around. Do you think I could spend them now???

    FreddieMac is set to sell $3bn on short-term debt on Monday. Secreatry Paulson is working on plans to inject up to $15 billion into F&F at highly dilutive terms for current shareholders.

  • In a recent Lehman Brothers report: If FAS 140 change goes through requiring to put off-balance sheets items back on books, Fannie Mae would need to add $46 billion of capital and Freddie Mac would need about $29 billion, although companies will probably get an exemption from the rule--> stocks plunge around 20%, agency spreads over Treasuries highest since March 13 (=benchmark for prime mortgages); CDS on both F&F above 200bp. In case this point is lost on somebody, let's make it clearer. THe MBS market supported by F&F, alleged AAA and AA rated agency debt, will absolutely crush those undercapitalzed (and that would be many) CDS writers who have used this stuff as underlying. Left holding the (BIG) bag would be those who actually thought they would be getting paid on the stuff... the chain reaction dominoe effect begins... look into AGO for an example of the hubris of Super Senior AAA false confidence. I have thorough analysis on this site of AGO and the CDS market - definitely worth looking into.
  • William Poole (St.Louis Fed): "Freddie Mac owed $5.2 billion more than its assets were worth in the first quarter, making it insolvent under fair value accounting rules"  fair value accounting rules are just that - FAIR, for example, if assets and liabilities were marked-to-market
 
  • CNN.com: S&P estimated that the cost of a Fannie/Freddie bailout would run somewhere between $420 billion and $1.1 trillion compared to $140bn taxpayer bill for S&L ($250bn in today's dollars).In Reggie Middleton on the Asset Securitization Crisis, I made a direct comparison of this crisis to the S&L debace, see The Asset Securitization Crisis vs. the S&L Crisis - pt 2
  • Resolution Trust Corp, part deux: Rosner (via Bloomberg): Government could move the companies' combined $1.5 trillion investment portfolios into a separate limited liability corporation that would gradually liquidate the assets. Meanwhile, securitization business could continue.