Using Veritas to Construct the "Per…

29-04-2017 Hits:88514 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:82212 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:82104 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:86603 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:83037 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:85156 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:56260 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:84484 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:84197 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:84057 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:90540 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:88116 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

In an election year, what normally would be an important topic of debate becomes a debatable topic of nill importance. Case in point: As the public strives to understand the root causes of the economic crisis, politicians and partisan media have refined their talking points. Unfortunately, many are quite focused on creating a wedge political issue, truth be damned. This is an excerpt from a blog post called the The CRA Talking Point and it is well worth the read. Basically, it illustrates a shift of the blame for the current financial situation from those who probably deserve it to those who can't defend themselves when accused. Granted, there is enough guilt to go around, but the Community Reinvestment Act really has nothing to do with this. Actually, it is the conservative Republican party that seems to be trying to fit a square peg in a round hole. Hmmm! The geometrically challenged. Here are a few quips from a recent Bloomberg article :

Federal regulators directed Fannie Mae and Freddie Mac to start purchasing $40 billion a month of underperforming mortgage bonds as the Bush administration expands its options to buy troubled financial assets and resuscitate the U.S. economy, according to three people briefed about the plan.

Fannie and Freddie began notifying bond traders last week that each company needs to buy $20 billion a month in mostly subprime, Alt-A and non-performing prime mortgage securities, according to the people, who asked not to be identified because the plans are confidential. The purchases would be separate from the U.S. Treasury's $700 billion Troubled Asset Relief Program.

The Federal Housing Finance Agency, which placed the two companies in conservatorship on Sept. 7, directed them last month to start increasing their purchases of loans and mortgage-backed securities as the Treasury seeks to absorb underperforming and illiquid assets from financial companies. That's because some people think it is better that our government become underperforming and illiquid than to have the cowboys responsible for this eat their own medicine. Yes, we should have seen it coming. I did (see In the Great Global Macro Experiment, the next bubble to burst is... scroll to about mid-post).

... Adding underperforming assets to Fannie and Freddie's combined $1.52 trillion mortgage portfolios would come at a time when the two mortgage-finance companies already hold as much as $210 billion of bad debt that may be eligible itself for the Treasury's relief program, their regulator said Oct. 5.  Isn't that ironic? It would be funny if it wasn't my tax money powering the punch line!

 ... Neither Fannie nor Freddie has turned a profit in the past year, accumulating $14.9 billion in combined quarterly losses, largely related to bad subprime and Alt-A mortgage assets.

... Subprime loans were given to borrowers with poor or limited credit records or high debt burdens. Alt-A loans were made to borrowers who wanted atypical terms such as proof-of-income waivers, without sufficient compensating attributes. About 35 percent of subprime loans in non-agency mortgage securities are at least 60 days late, while 15 percent of Alt-A loans are, according to a Sept. 9 report by FTN Financial Capital Markets. With this thought fresh in our minds, let's move on to the next topic at hand, but first I must ask, Is the worst behind us yet, Mr. Paulson?...

 And more from a concerned reader.

If there ever was a time to inform the American public of a pending financial crisis of epic proportions, now is the time. I feel compelled to comment where ever I can about the IMF's study wherein they have a simple chart of the mortgage defaults charted through 2010. If you look at the chart, and read their predictions, what we have been experiencing was primarily Sub-prime (B Paper) mortgage loan defaults over the past 6 months expertly borne out as they predicted. What is REAL scary is that in 2009 Q1-Q4 of 2008 and into 20010 there is a BIG spike in Alt-A & Option-Arm defaults that will make what we have seen thus far pale in comparison. The reason this should be brought to light is if the public thinks that what the Fed is attempting is going to make a difference then they need to be informed of the calamity that will come in 2009 & 2010. The only way any political party is going to do right by the public is to make the IMF's report and this 2007 Mortgage Resets chart, known and all it findings.

 

We are in trouble because there is much more pain to come. The economists know this well but they are not on the cable news outlets challenging the talking heads. Please take a look at the study & important chart and bring this to light.

 

The October 2007 report http://www.imf.org/External/Pubs/FT/GFSR/2007/02/index.htm

  - Page: 8 (FIGURE 1.7 shows monthly mortgage resets)

 

The October report is at http://www.imf.org/external/pubs/ft/gfsr/2008/02/pdf/text.pdf

  - Pages: 12 (Mortgage delinquencies), 14 (Consumer charge-off rates), 13 (US charge-off rates), 19 (UK Foreclosure)

 

Actually, I have expressed in extreme detail the risks coming down the pike in the very near future in my Asset Securitization Crisis series. This never was about subprime. See The Asset Securitization Crisis Part 27: The Butterfly Effect for the latest installment and links to all of the previous installments.