Using Veritas to Construct the "Per…

29-04-2017 Hits:85853 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:80065 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:79926 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:84408 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:80945 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:83184 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:54196 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:82329 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:82171 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:82040 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:88087 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:85947 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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For those that have been following for over a year, you know that this time last year I started calling out all of the banks as possible failures that you are now only starting to hear as bailout candidates. I came out with the Doo Doo 32 List (and the spreadsheet  Doo doo list update 2008-10-15 13:19:48 450.83 Kb ), and the Anatomy of a Sick Bank! Keep in mind that these lists of weak banks were contrived from an investor's perspective, and not that of a consumer advocate or a regulator. Thus, there were certain invalid banks that did not arrive on the list because their shares did constitute optimal shorting opportunities. I also released several forensic reports on companies in the lists that were in no way on anyone's radar in terms of troubled institutions. As a matter of fact, many pundits though I was out of my mind. Well, $600 billion of TARP and 80% in share price declines later....

My roadmap for the year: The Backdrop for 2009!

Is this the Breaking of the Bear? In January 2007 when Bear Stearns was trading in the 100's, I told you so!

I told you about Lehman Brothers when it was trading in the 60's: Is Lehman a Lying Lemming?

GE: the Uber Bank

  

 

American Express: Early Warning, When the best of the best start with the shenanigans, what does that mean for the rest of them?

  

Morgan Stanley, the Riskiest Bank on the Street

Morgan Stanley Morgan Stanley 2008-08-30 06:37:05 414.74 Kb

 

pdf  Analysis of MS write-downs 2008-09-25 00:50:05 841.57 Kb

  

Banco Bilbao Vizcaya Argentaria SA (BBVA) Professional Forensic Analysis Banco Bilbao Vizcaya Argentaria SA (BBVA) Professional Forensic Analysis 2009-02-23 09:05:09 439.80 Kb

pdf  Banco Bilbao Vizcaya Argentaria SA (BBVA) Addendum - Pro 2009-02-23 09:04:12 569.55 Kb

 

pdf

spreadsheet  HSBC_Holdings_Report_04August2008 - pro 2008-11-06 10:11:09 138.89 Kb

pdf  JP Morgan Forensic Highlights 2009-01-06 19:18:08 133.34 Kb

pdf  JP Morgan Q408 Quarterly opinion with sample trades - Professional & Institutional 2009-01-22 08:48:02 211.69 Kb

  

spreadsheet  PNC Report_update final - Pro 2008-10-15 13:21:22 590.98 Kb

pdf  SIVB Forensic Analysis Pro 2008-12-19 12:40:15 468.82 Kb

Sun Trust Bank Report Sun Trust Bank Report 2008-08-30 06:39:22 391.89 Kb

 

This analytical capability and forecasting prowess is now being passed to our government officials first hand.

I sat down with a very decent sized group of very influential members of our legislature during my trip to DC (see I'm headed back to DC, with blogger's opinions in hand!) and I am putting them on the educational fast track to forecasting the next big blow up, Reggie Middleton style. Just imagine senior members of the legislature armed with the best BoomBustBlog research and opinions. Oh My!!!! They have been quite impressed with my track record so far.

And now, on to the news article of the day from Bloomberg: Fed Takes Lead Role in Executing ‘Stress Tests’ of U.S. Banks or LTTP pt 5 (that is "Late to the Party, part 4": come on guys, these banks were in trouble over a year ago and if a blogger and proprietary investor). I can tell you exactly what the results of these tests will be, simply reference the companies listed in the articles posted over a year ago. Now, imagine if our regulators and legislatures exercised this foresight. In a way, it may work to my detriment, for those 720%+ returns may wane, but hey, it would be a hell of a lot better for my country!

"March 31 (Bloomberg) -- The Federal Reserve has taken the primary role in determining how much new capital the nation’s biggest banks need to weather the economic slump, people familiar with the matter said. Why didn't they just do this in the first place?

Putting the Fed in charge may help ease concern that different assessments by different agencies would lead to some firms being judged less strictly than others. Treasury Secretary Timothy Geithner has said he anticipates the results, due at the end of April, will result in “large” capital needs for some companies, offering investors a way of differentiating between weaker and stronger lenders. No kidding? To think, bank stocks have been rallying hard into this not so news!

Fed examiners are deployed alongside counterparts from three other agencies that oversee parts of the 19 banks that are involved in the so-called stress tests.

“You could argue this is a systemic risk issue and it is good to have another regulator step in and assert a uniform set of standards,” said Kevin Fitzsimmons, analyst at Sandler O’Neill & Partners LP in New York, and a former bank examiner at the Federal Reserve Bank of Boston. “The Fed has its hands on every institution that is a holding company.”

All 19 of the firms under scrutiny, from American Express Co. and GMAC LLC to SunTrust Banks Inc.Citigroup Inc., are bank holding companies, giving the Fed an overarching role. In other words, just look to the Doo Doo 32 List, the spreadsheet  Doo doo list update 2008-10-15 13:19:48 450.83 Kb ), the Anatomy of a Sick Bank! and Reggie Middleton's banking analysis from early LAST YEAR! Hey, why waste government dollars stress testing when you could just read a blog??!!!

‘Consistency’ of Tests

Geithner unveiled the stress tests on Feb. 10. They were billed as a comprehensive set of standards for the financial system’s most important banks, regardless of their regulator. He stressed “consistency” and “realism” in congressional hearings that week. You know, I have half a mind to start showing up at those congressional hearings myself!

While U.S. regulators don’t intend to publish the details of their stress tests, the results will effectively become known once it is determined how much capital each bank is required to raise. It's too late, the details have already been published here about a year ago! Under the terms of the February plan, firms will be given six months to raise the funds either from private investors or the government. It will be near impossible for the banks to raise funds in the private market if they lax the mark to market rules, for no one will trust the books, that is they will trust then even less than they do now. You see, in the face of uncertainty, we default to the lowest common denominator to minimize risk. The natural result of the the laxing of M2M rules will be a compression of bank stock valuations (yes, even lower than they are now!). Most of the fools that fell for the banking shenanigans in the past have been shaken from the market. It is not as if the banks instantaneously and automatically come with 60% higher valuations and TCE and we all sit back and say, "Wow, that was cool Mr. Banker! Let us give you all of our money now that you are safe and sound!"

What we have now are the more astute guys who are short, but will go long when the time is right in order to pick up the pieces. Currently, the pieces are overpriced nearly 100%. Any trading pop on the laxing of mark to market rules will drive the banks into a hole that quite a few of them will not return from. Legislators, bankers, special interest groups, lobbyists and rule making boards, be careful what you ask for!

The tests are designed to mesh with the administration’s effort to remove distressed mortgage assets from banks’ balance sheets, which have hampered lending to consumers and businesses. Officials aim to have the first purchases of the toxic assets by private investors financed by the government within weeks of the conclusion of the capital-need assessments.

“Banks are going to have an incentive” to sell their devalued assets because they want to “go raise private capital from the markets,” Geithner said in an interview with NBC’s “Meet the Press” March 29. Conceptually, Geithner's plan makes sense. The only dilemma is the potential for collusion to synthetically inflate prices: see "I'm headed back to DC, with blogger's opinions in hand!"

...

“If these stress tests are going to be meaningful, as they should be, then banks are going to require more capital,” Patrick Cave, a former Treasury official who is now chief executive officer of Cypress Group LLC, said in an interview on Bloomberg Television. He added that the administration is right to pursue a “tough love” approach to any further assistance...