Using Veritas to Construct the "Per…

29-04-2017 Hits:82241 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:77843 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:77418 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:82157 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:78749 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:81039 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:47924 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:79752 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:79264 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:79818 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:84827 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:81753 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

Note to Commissioner Cox: You have doomed the last two independent investment banks. Congratulations. By actually trying to directly manipulate the US capital markets by literally banning the short selling of a certain cadre of stocks (while allowing the long buying of those same stocks) you have upset the natural equilibrium of our capitalistic environ. You must learn to wrap you mind around, and grasp the difference between, price and value. The short sellers were driving the prices of these investment banks down to match their value. Now, with your short sighted intereference, you have allowed - no, let's be more accurate, you have overtly facilitated the divergence between price and value. 

For one, you cannot prevent astute investors from taking bearish positions on a company. You preside over the most advanced, and complex financial markets in the history of the world, not some third world nation that is just opening its first exchange as an extension of the town food market!

Word has it that the clients of Morgan Stanley are fleeing, despite (or maybe even because - due to the drastic socialist nature of) your actions. Because you have allowed longs to bid prices up way above their intrinsic economic value, you have injected an unprecendented amount of volatility into the system. This increases the cost of capital, my friend, not decrease it. When the truth meets reality, what do you think will happen to share

Discount Window Shatters Record
AIG bailout adds $28B to tally; investment bank demand surges
During a week that witnessed the collapse of a major investment bank and the bailout of the world's largest insurer, lending through the Fed's discount window shattered all records, totaling $121.3 B.

 

prices? That's right, they will fall that much more. A market needs two sides to a trade, not just one. I hear you plan on preventing investors from selling stocks at a loss next, which will be music to the ears of those at the IRS!

 

From FT Alphaville:

This is a pretty stunning line to read:

"We need a merger partner or we're not going to make it," Mr. Mack told Mr. Pandit, according to two people briefed on the talks. Mr. Pandit, a former senior investment banker at Morgan Stanley, said Citigroup was not interested.

What might Mack have had on his mind? Afterall, only the other day he was supposedly telling MS employees that everything was just fine, notwithstanding the destructive antics of rumour-mongering short sellers.

We're hearing everything is not just fine. Dealbreaker notes that MS prime brokerage clients are heading for the hills.

We've heard a few tentative numbers - with outflows of prime brokerage business from MS of between $20bn and $120bn being rumoured.

JPM is thought to have taken on board $40bn of prime brokerage accounts in the past 48 hours alone. They have been "inundated".

It's very much a run on the bank. The collapse of key prime brokerage accounts is exactly what nailed the lid shut on Bear's coffin even as its executives were bemoaning the share price collapse and touting its strong liquidity position.

Little wonder then that MS is in talks with a number of parties.

Comment from Sam Jones, the FT blogger:

Readers, some clarity: the numbers being reported on PB outflows from MS are quite obviously speculative: anywhere between $20bn and $120bn we quote. That's quite some deviation... we report it to emphasis the fear out there.

Even so, we have checked our core facts... we know that hedge funds ARE switching - there IS a big pullback from MS. JPM have indeed been "inundated". We are not rumour mongering here.

And if you need more concrete market proof, then ask yourselves why MS is in talks. Bloomberg are now reporting that they are negotiating the potential sale of a 49% stake to CIC... I do not think that would be entered into lightly. Get your heads out the sand!

Jones/Alphaville

UPDATE: Mr Mack's comments are being denied - aggressively

Now it's the media's fault...

Or the short-sellers?

14:31 CITIGROUP INC SAYS COMMENTS ATTRIBUTED TO MORGAN STANLEY'S MACK IN NEW YORK TIMES ON THURSDAY "WERE NEVER STATED BY MR. MACK TO MR. PANDIT."

14: 33 NEW YORK TIMES HAD REPORTED THAT MORGAN STANLEY CEO MACK TOLD CITIGROUP INC CEO PANDIT. "WE NEED A MERGER PARTNER OR WE'RE NOT GOING TO MAKE IT."

From Reuters.

One wonders why the qualifying phrase "to Mr. Pandit" was necessary. Basically, Mr. Mack did say it, just not directly to Mr. Pandit.

Even if that weren't reason enough to run scared, just look at their fundamentals! Peruse a professional investor's opinion of last quarter's results, or just compare the investment banks and you will see it is highly unlikely they will remain both independent and a going concern in the near future. This is even more assured thanks to the volatility that Mr. Cox is injecting into the system. These companies share prices will come crashing down because their business model is antiquated, and broken. The only difference now is that the will crash twice instead of once. 

If I were to give Mr. Cox some unsolicited advice (ain't that the best type?), I would suggest that he use his regulatory powers to open up the books of these companies and let us investors get a clear look at what's in them. At this point it is a farce to believe that we are fooled by the off balance sheet, hide the sausage game. If we can't see it, we default to the worste possible conclusion and work our way up from there. I, personally, would love to go long certain firms if I was clear I knew what it was I was going long on. True transparency will allow for price discovery, and that alone is what will bring liquidity back to the markets - and do so without the volatility that these doomed shenanigans are bound to produce.