Using Veritas to Construct the "Per…

29-04-2017 Hits:85837 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:80053 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:79912 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:84394 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:80932 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:83172 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:54186 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:82315 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:82157 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:82029 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:88072 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:85935 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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Excerpted from From the NY Daily News:  

Giants claim defunct firm Lehman Brothers owes team $300M

Big Blue claims the bankrupt investment behemoth owes the team $301.8 million from a complex financing deal for its new stadium in the Meadowlands.

The battle centers on a high-risk financial contract - the kind that has contributed to America's economic meltdown - between football's reigning champs and Wall Street's leading chumps.

It surfaced in a little-noticed, 238-page claim Giants co-owner John Mara filed in federal Bankruptcy Court on Oct. 17. It contends the team was guaranteed full payment because Lehman defaulted on its obligations.

The team filed a second claim to collect another $401,500 from Lehman to cover half of its $803,000-a-year bill for leasing an on-the-sidelines luxury suite with a bar and space for 24 guests, bankruptcy filings show. A stadium spokeswoman said the luxury suite issue had been "resolved." She refused to provide dThe Giants could also hire 38 wide receivers at Plaxico Burress' $7.85 million salary for Manning to throw the ball to.etails...

... "It would be quite unhealthy to hold your breath waiting for the Giants to get paid," said Reggie Middleton, who runs the Boom Bust Blog and was one of the earliest investors to warn of Lehman's impending demise. "They can expect to recover less than 9 cents on the dollar - a lot less - and they'll probably get zilch."

The Giants have a long wait before they can collect. "It could be as long as three or four years," said Lynn LoPucki, a law professor at both Harvard and UCLA and an expert on corporate bankruptcies. "Widows and orphans might qualify for a hardship claim and get paid earlier, but the New York Giants are an unsecured creditor - and they won't be on anybody's list to get paid ahead of schedule."

The flashpoint is the 82,500-seat, open-air new Meadowlands Stadium the Giants and Jets have been jointly building since 2007 on a 40-acre site across the Hudson.Complete with four restaurants, a Hall of Fame, 213 luxury suites, 2,000 video screens and a 300,000-square-foot outdoor plaza for tailgate parties, the stadium, expected to open in the spring of 2010, is budgeted at $1.6 billion.

To fund it, the National Football League loaned the teams $150 million apiece in 2007. The Giants and Jets each snared $650 million bank financing deals, with the Giants buying 40-year bonds from a seemingly healthy Lehman Brothers. Interest on those bonds, paid out until 2047, could be punishing, and the Giants wanted to reduce borrowing costs.

So they entered into a so-called interest rate swap with Lehman, "swapping" interest that could float much higher for fixed interest that would remain moderately priced, court filings indicate...

..."The agreement broke down the day Lehman declared bankruptcy" on Sept. 15, said Middleton, who analyzed the deal at the request of The News. The Giants were suddenly at risk of having to pay over time all the borrowing costs they had expected to save - an amount calculated at $301.8 million - because Lehman defaulted.

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I have been crowing about investment bank and commercial bank insolvency for over a year now.

Why didn't Wall Street read my post on Lehman being a yellow lying lemon? See "Is Lehman really a lemming in disguise?" and realize that this post was made on February 20th, when Goldman Sachs had a recommended price of about $55 while this blog warned that Lehman may be done for. This very similar to when I warned about the potential demise of Bear Stearns in January, when the rest of the Street had a "buy" at about $130 per share. See Is this the Breaking of the Bear?.  We all know how both of these stories ended. Please click the graph to enlarge to print quality size. 

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If I am not mistaken, didn't the major rating's agencies have an investment grade rating on Lehman leading up into its bankruptcy? What a damn shame.