Using Veritas to Construct the "Per…

29-04-2017 Hits:84585 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:79054 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:78906 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:83387 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:79953 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:82263 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:53240 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:81266 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:81274 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:81078 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:86928 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:84941 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 it stands now, the US Federal government is the only significant buy of risky assets in this country, and without as well. Not only is it the only buyer of these hyper-inlfated and hasteningly depreciated assets (read as wealth reducing), it is now trying to force bubbled assets up in price. This is absolutely absurd. Who's in charge up there. The housing market was on an unsustainable and destructive bubbliciously unrealistic tear. The bubble popped, and prices are correcting. Let me say it again - prices are CORRECTING. They are returning to where they should be, the are not dropping from where they should have been.

With the very strong possibility of a US auto industry bankruptcy (pre-packaged or not, somebody is going to get stiffed), combined with what will most likely be a $70 billion plus bailout - don't believe that $25 billion number any more than you can believe Treasury Secretary Paulson in public - this country is going to be a little strapped for cash. We still have the commercial real estate crash to deal with, the insurance industry will have their hands out, and the municipalities are bleeding badly. For those not familiar with my stance on Paulson, see "Is Paulson to be trusted, or is this Bush Administration Shock and Awe, 2.0?", Reggie Middleton asks, "Do you guys know who you're messin' with?", and "Reggie Middleton says don't believe Paulson: S&L crisis 2.0, bank failure redux" - Yeah, I think the man "stretches the truth" to congress and the public every now and then, but to give him a little credit, no more so than Bush, Rumsfeld and those WMDs.

Take a cursory scan of Bloomberg.com's home page and you will see nothing but good news to lighten your weekend:

European Stocks, U.S. Futures Drop as Metals Fall, Economy Concern Widens

Payrolls in U.S. Probably Fell by Most in 26 Years as Recession Deepened

General Motors Chief Says He'd Accept Strict Conditions on Federal Bailout

Trichet Under Pressure to Give Deflation Plan as Rates Get Closer to Zero

Merrill May Be Toughest Test for Bank of America's Serial Dealmaker Lewis

Pimco Sees Pound Bottom as BOE Cuts Rate to Lowest Level Since Churchill

Kerviel Loses Bid to Question SocGen Chairman Bouton in Trading Loss Probe

India Broadens Security Alert to Include Government Buildings, Refineries

Cisco, Dell Risk Losing Sales as Bankruptcies Flood Technology Gray Market

Galaxy, Olam Buy Back Debt as Collapse in Asia Bonds Drives Yields to 28%

••Murders Rise in Obama's Backyard as Recession Crimps Chicago Police Hiring

Canada Economy Sheds 70,600 Jobs, Most Since 1982, on Manufacturing Slump

So, what happens when you try to artificially manipulate this correction, through administrative or legislative means? You make a big, fat, hot mess that is much worse than what you started with, that's what happens. See Paulson Considering Plan to Revive Housing by Driving Down Mortgage Rates:

Treasury Secretary Henry Paulson is considering a new plan to reduce mortgage rates in another bid to revive the U.S. housing market, a government official said.

The Treasury, which already has a program to buy mortgage- backed securities issued by Fannie Mae and Freddie Mac, could step up those purchases to drive down interest rates on some loans to 4.5 percent, the official said on condition of anonymity. The plan is preliminary and could change. Now, I'm not an expert or anything, but wasn't this the impetus of the calamity in the first place? There used to be this urban myth circulating when I was in college. If you had a real bad hangover from partying the night before, just throw down a couple of shots of overproof rum and you will totally forget about the hangover the night before. It appears as if Paulson is a believer. Don't get me wrong. I make my money from unwise central banker decisions, worldwide (see "My Investment Style"). If Paulson keeps it up, I might as well start test driving that new convertible Maserait Gran Turismo S. Since I am a humble man from working class roots, I'd be quite satisfied with my Chrysler mini-van, in exchange for some fiscal prudence and practical foresight from my government. Unfortunately, I don't think it will happen, at least not in the short term and in the vein that I think is most practical. Then again, what the hell do I know? I just called this malaise with 100% accuracy from the very beginning (see performance).

If the followers of my blog think my peformance has been impressive over the last year and a half, just wait until this Global Macro Experiment really starts to kick in. You ain't seen nuthin' yet! In an attempt to avoid taking the proper medicine for the last two bubbles blown, the central bankers around the globe are huffing and puffing, inhaling and exhaling (quite hard, may I add) in a concerted attempt to blow the MOTHER OF ALL BUBBLES). My team and I road the last bubble up, we're riding it down (and documenting it meticulously in real time through this blog via 20 page research reports) and trust me, we will take full advantage of the mess the central banker made (is making, won't stop making). The revolution will not be televised. No need to fret or worry. I will continue to manipulate this new media and medium to blast the truth to all who want to, or wish to hear it.

Asset prices must be allowed to correct, and the insolvent must be allowed to fail so the solvent can continue and investors can have confidence in the market pricing mechanism. Thus far we have no investor confidence, and as for the insolvents -well the walking dead are all over the place, and I'm talking some pretty big bodies. 

It is not as if asset prices are not going to fall anyway. You cannot legislate, or admistrate high risky prices in a market based economy (that is, if we still have a market based economy - the socialism is creeping). Yes, the government buys everything risky from everybodey else, but what about the 2nd transaction? In order for prices to maintain that level or rise higher, someone must make a purchase at an equal or higher price. It ain't gonna happend for at least a decade, and that may be optimistic.

The deliberations come as President-elect Barack Obama pledges fresh action to help American homeowners, and follow a $600 billion initiative announced by the Federal Reserve last week to buy mortgage debt. Mortgage applications surged by a record last week and the average rate on a 30-year fixed-rate loan dropped to 5.47 percent, the lowest level since June 2005, the Mortgage Bankers Association said yesterday.

“Lower mortgage rates will allow households to fortify their balance sheets, and we will likely see consumer spending come back a little quicker than it would otherwise,” said Mark Vitner, a senior economist at Wachovia Corp. in Charlotte, North Carolina. At the same time, “it’s not going to be an instant panacea for what ails the economy,” he said. Maybe, and maybe not. Lower monery rates also spur imprudent speculation when taken to the extreme, and this can be considered extreme. Mortgage rates are ALREADY flirting with historical lows, so I really don't think rates are the problem. Imprudent financial behavior and low savings and real investment rates coupled with sparse real income is the problem. Hey, instead of dropping rates to a 100 year low, let's keep them at a 98 year low and try to spur employment and productivity. That way people can actually pay their debt service and buy assets the old fashioned way, work for it. 

While lowering mortgage rates to 4.5 percent would allow most homeowners to refinance into a cheaper loan, far fewer will actually qualify, said Rajiv Setia and Nicholas Strand at Barclays Capital in New York.