Using Veritas to Construct the "Per…

29-04-2017 Hits:84698 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:79156 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:78997 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:83490 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:80048 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:82355 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:53328 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:81367 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:81358 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:81175 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:87033 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:85048 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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I see a lot of cackling over Obama's compensation restrictions, but to be honest he did Wall Street a favor. Shareholders and senior management had to have been looking for a way to reign in compensation costs (despite the fact that the reign in would have cut their own compensation). Put it this way, any prudent business manager could not be happy that his industry has the highest compensation costs in the world. Think about it.

This is that devilishly handsome investment blogger guy with his wife Sunni @ her last birthday party. Some of you may have met her online or at a boombustblog event, she is helping me grow the blog, and one of her many tasks is fielding support questions from subscribers, when she is not helping build out the risk management infrastructure of my proprietary trading operations. I am taking all of the steps necessary to avoid becoming the casualty that you see the investment banking, private equity and hedge fund crowd morph into.

She is a very capable woman (and a cutie too), with a over a decade and a half experience in risk management, financial engineering, internal auditing of financial insitutions, and energy product trading. reggiesunni.jpg

She served as a department manager for the risk management & regulatory consulting arm at Ernst & Young before moving to a very large hedge fund to perform internal auditing for US operations. Before that she worked for an energy company in trading and risk management. Here is her (free registration required to view this) BoomBustBlog page with her bio, and for those who want to know a little more about me, click here.

I will post more info about the BoomBustblog team soon, including CFAs and forensic CPAs. Yep, we ain't your Daddy's blog (if your daddy even knew what a blog was)!

The problem is no one or two firms could have done it on their own. If one (or when) one firm tries to reign in costs, workers just skip along to the other overpaying firms. Let there be no mistake, most of Wall Street's revenue generating line was overpaid. These guys would be hard pressed to find similar compensation in any other line of work given their skill set.

For the Wall Streeters on the blog, don't take it personally. I am a born and bred NYer, so many of my friends are amongst the rank of the overpaid (or at least were), including my wife who recently was dismissed from a very prominent brokerage firm - along with the CEO, the CFO and COO, as well as a few entire departments. She is a beautiful person (literally), intelligent, a good mother, quite capable, and yes - she was overpaid too! So, be aware, I am being objective.

Thus, by being forced, en masse, to curb compensation (actually, they are being compelled since there are ways around the ban), shareholders of these big Wall Street firms owe Obama, et. al. a bit of gratitude. I don't think there will be a talent drain on the Street. For one, I believe that "so-called" talent was over estimated to begin with (no one has yet come through to match or best my risk adjusted or published blog research performance for 2007 and 2008 - yes, that's and open challenge!), and the special skill of avoiding regulatory oversight has its limits in terms of productivity to society. Even if the talent on the street was not overestimated, there is still the question of where they will go of they leave the Street. Not many industries are keen on paying someone 4 years out of grad school 3 million dollars to generate revenues unadjusted for risk that may need to be clawed back a couple of years later.

Hey, as mentioned above, I think I put out better performance numbers and better research than any popular outfit on the Street, and I don't even pay myself 50-60% percent of the revenues. My money goes back in to feed and grow the business. So, if I can be that prudent and responsible and still outperform the Street (on a shoestring budget, may I add), then the Street can do it as well. Simply exercise some prudence. If Wall Street banks were run like I run my private operations, Wall Street shareholders would be that much wealthier. As I said, you should be thanking Obama for doing for the industry what it couldn't do for itself.

You will probably get a redistribution of talent, such as my wife helping out with the blog - but that is a good thing, isn't it? Think about it. Now, any institution that follows this blog can potentially get access to her talents, experience and insights - a deep resource that was heretofore locked into a compensation contract with your competitor. In addition, those institutions can get it wrapped with the macro, valuation and forensic expertise of my staff.

I don't know about you, but I think some synergies will be released into the open business environment that were squandered in the work pits of Wall Street banks and brokers. I realize this may not be the most popular of stances, but that is one of the reasons why my research is considered superior to practically all of that on the sell side - I can tell the truth where other's can't, don't or won't.

Now, if the banks don't like being told what to do, how much to pay, and generally being micro-managed from DC, they can always just give the TARP funds back. That won't happen anytime soon though. Paulson hooked those guys up once in comes to intrinsic cost of capital. Taxpayer money is a lot cheaper than Buffet money, or so they thought. There were some extrinsic costs that seem to have slipped under the radar. In addition, let's not forget that most of these banks are insolvent anyway (see The Anatomy of a Sick Bank , Re: JP Morgan, when I say insolvent, I really mean insolvent , Is JP Morgan Taking Realistic Marks on its WaMu Portfolio Purchase? Doubtful!, About this Bank Plan - It Won't Save the Truly Insolvent Banks!) - thus they can't afford to give the money back!

From Bloomberg

Giving Back

“It clearly underscores who the banks are being run for,” said Doug Sandler, the chief equity officer for Riverfront Investment Group LLC in Richmond, Virginia, which has about $450 million in assets under management. “It doesn’t make me feel like I want to own a bunch of bank stocks when they’re kow- towing to Washington.”

Frank told the bankers if they don’t like the restrictions on the government aid, they should return the funds.

“We will take it,” Frank said. “If there are any obstacles to you giving it back, we will undo those obstacles.”

The CEOs said they intended to pay back the government’s money. When pressed for specifics, Mack of New York-based Morgan Stanley said he wanted to repay “some portion of it by 2012.” Stumpf said, “It would depend upon credit markets more than anything else.”

The new scrutiny of bank spending on advertising and employee programs has led San Francisco-based Wells Fargo, which received $25 billion in TARP money, to cancel at least two events to recognize top achievers.

  Wells Fargo had best to behave - About this Bank Plan - It Won't Save the Truly Insolvent Banks!, or Wells Fargo Forensic Analysis. 'Nuff said!

I think the US and Euro bankers should count their blessings. After all, they could have been a top banker in China!

From MarketWatch.com:

China Airport Executive Sentenced to DEATH!

In handing down its sentence, the court said Li's actions had resulted in large economic losses for that nation and that the amounts involved were extraordinary.