Using Veritas to Construct the "Per…

29-04-2017 Hits:84622 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:79089 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:78935 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:83422 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:79988 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:82295 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:53268 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:81299 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:81299 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:81107 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:86960 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:84978 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 recivedthis Op-Ed piece from a reader and thought I would pass it along. For thos that have been following the congressional hearings concerning Lewis and the B of A purchase of Merrill Lynch, it should be obvious that congress is gunning for Bernanke, and possibly Paulson and Lewis as well. Lewis has come quite close to perjuring himself, and Paulsona and Bernanke appear to walk as if they have an impervious air of invulnerability. The "Man" may very well be delivered his comeuppance!

I know the few times that I have personally interacted with Bernanke and the legislature,  have percieved an air of percieved intellectual superiority from the Fed Chairman, and I sure  there are a few members of the legislature who were rubbed in a similar fashion. Well, enough of my ranting, as is customary, I am issuing the usual discliamers in that this is a 3rd party opinion and does not necessarily reflect the viewpoint of this site (although it really does, I'm just ot supposed to say it) or its author. 

Fed Transparency - Let's Get Some Sunlight

Please consider this message below. You can be an integral part to getting some sunshine and transparency on the Fed, closing a loophole that should have never existed to begin with. I believe the headlines of this message sum up the point I am trying to convey:

  • Let's close the loophole by encouraging our Congresspeople to sign HR 1207
  • Bernanke has left his tremendous actions in the dark, and no one is watching
  • The murmurs we do hear imply he is systematically overpaying
  • His actions are scaring our trade partners, and he is putting us all at risk
  • Enron lobbyists will not heal his wounded reputation
  • Fiscal functions require approval, but not (yet) when the Fed does it!
  • We are almost over the finish line, which we can cross with 5 minutes of your time



Let's close the loophole by encouraging our Congresspeople to sign HR 1207
There is a loophole that has led to the spending or guaranteeing of at least $6.5 trillion (CNN) with absolutely no oversight or understanding of where the money went. HR 1207 seeks to close this loophole, and with 213 co-sponsors, we are only 5 away from its closure. With your

 

help we can close it and shine some light on the Federal Reserve.


Bernanke has left his tremendous actions in the dark, and no one is watching
Fed Chairman Ben Bernanke, economically, is arguably more powerful than the President. Without anyone's oversight or approval, Mr. Bernanke has printed ~$1.1T out of thin air, spent it, and guaranteed much more on an alphabet soup of programs as of 5/20/09 (source 123). He has not said what he has bought. He has not said what price he is paying. The Federal Reserve Inspector General, who is responsible for overseeing the actions of the Federal Reserve, has no clue what is going on. Please see this video (YT 5/6/09).


The murmurs we do hear imply he is systematically overpaying
All we hear are murmurs every so often about how he have over-paid, like major losses due to Fed guarantees to JP Morgan over Bear Stearns' toxic muck (source 12), and back door bailouts to Goldman Sachs and foreign banks via paying well over the market price to AIG for vastly depreciated "credit default swaps" (source 123). Let's not forget, Bernanke himself said on 4/1/09 that the Fed would NOT lose money on those Bear Stearns assets: "In his testimony Wednesday, Bernanke said he did not believe the central bank would lose money on the deal and said it could make money. He said he did not consider the transaction a bailout because of the losses sustained by Bear Stearns shareholders." (CBS 4/3/08) There has been a general trend of people saying government bailouts will be profitable to the taxpayer. This has been to justify their spending our money as an "investment" which could actually make us money. Each and every time thus far, we have lost big. This is not a coincidence.


His actions are scaring our trade partners, and he is putting us all at risk
The Federal Reserve's actions are scaring our major trade partners.

  • Dallas Fed President Richard Fisher has been grilled by the Chinese about our money printing. "He has just returned from a trip to China, where "senior officials of the Chinese government grill[ed] me about whether or not we are going to monetize the actions of our legislature." He adds, "I must have been asked about that a hundred times in China."" (WSJ 5/23/09)
  • Brazilian President Lula Da Silva singled out Fed printing as the reason for his newfound inclination to do trade with China in Yuan and not in US Dollars: ""We don't need dollars," Silva said. "It's crazy that the dollar is the reference, and that you give a single country the power to print that currency."" (BB 5/15/09)
  • Brazil, Russia and China are all now taking very tangible steps to wean themselves off of US Dollars. In addition to the above, Brazil and Russia are to sell US Treasuries and buy $20B of IMF bonds (BB 6/11/09). Russia has said it would like to do trade with China in Yuan like Brazil. And China has set up a pilot program to settle transactions in Yuan (SD 1/7/09).
  • Long term Treasury rates have gone up considerably (YF), rising from 2.03% on 12/13/08 to up to 4% today, 6/11/09. Part of this is due to a rise in risk appetite. However even Bernanke himself has admitted part is due to rising fears of inflation stemming from an inability to fund large federal deficits in the face of waning dollar demand: "These increases appear to reflect concerns about large federal deficits but also other causes, including greater optimism about the economic outlook, a reversal of flight-to-quality flows, and technical factors related to the hedging of mortgage holdings." (F 6/3/09)

They are scared, and rightfully so. The Federal Reserve is severely undercapitalized, and likely insolvent. You can look at the Fed balance sheet yourself (FR). As of 6/10/09 they have $46B of equity supporting $2.1T of assets. They have at least another $4.7T of guarantees and commitments (CNN). If the effective asset value of those guarantees and commitments is 30% of their principle value, then the Fed has $3.5T of assets supported by $46B of equity, or a leverage ratio of 76x. This means a 1.3% decline in the value of these assets will completely wipe out their equity. They probably have at least this much in losses, this very moment.

Think about this for a moment - $6.8T lent, committed or guaranteed. This makes the $700B of TARP look like a walk in the park. A veritable pimple.


Enron lobbyists will not heal his wounded reputation
To add insult to injury, Bernanke is attempting to help its ailing reputation (weakened further by allegations of lying which I have documented in the past) by bringing in a veteran lobbyist who had previously worked for Enron (RN 6/5/09). You cannot make this up.


Fiscal functions require approval, but not (yet) when the Fed does it!
The Fed, I am sure, means well. He is acting in times of great uncertainty to ensure the viability and stability of the financial system. At the same time, we are a nation of laws. As soon as we start making exceptions to the Rule of Law due to exigent circumstances, we jump out of the frying pan and into the proverbial fire. What is someone else feels strongly about something? Should he then make an exception? Where do we stop? When everyone comes to realize that the Rule of Law is no longer sacrosanct, how will they respond? This is a marathon and we have a long ways to go. Now is not the time to take an illegal short cut.

Regardless of its intentions, the Fed has pretty clearly exposed itself to substantial potential losses. It is no longer simply a liquidity provider. It is serving a fiscal function. Losses (if anyone was allowed to know what they were) past a certain point will require the Treasury to recapitalize it. Ironic, given the Fed is now printing money to buy Treasuries. Fiscal functions require congressional approval. The Fed has become a backdoor way through which the government can act without the checks and balances of Congressional approval. This is a loophole and it needs to be closed. We need to shine some sunlight on the Fed, and Ron Paul's HR 1207 will do just that

Please consider this video of Ron Paul explaining HR 1207 (YT 6/10/09).


We are almost over the finish line, which we can cross with 5 minutes of your time
If this so moves you, please consider the following. The following simple steps - a phone call and an online message - will take no more than 3 minutes, but will potentially get us to the 218 co-sponsors we need to pass this.

  • 1. Go to Ron Paul's HR 1207 website link (RP).
  • 2. Check if your Congressperson is on his list. This link (HOR) locates your Congressperson by zip code. To get the last 4 digits of your zip code, go here (USPS).
  • 3. If your Congressperson is on his list, nothing more can be done in your area, but it would be very helpful if you could forward this around.
  • 4. If your Congressperson is not on his list, please go to your Congressperson's webpage (see [2]), go to their "Contact" page, and go to the area where you can send a message online.