Using Veritas to Construct the "Per…

29-04-2017 Hits:38490 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:39295 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:38726 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:40472 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:40053 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:42609 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:27663 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:41235 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:41183 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:41423 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:43473 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:42870 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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We seem to have a case of the proverbial David and Goliath in the banking industry during this Asset Securitization Crisis. On one side, you have the big national, and global behemoths, complete wth derivative trading and underwriting desks, brokerage and sales forces, and M&A and equity/fixed income teams (I'm still waiting for them to give out those free toasters). On the other side you have the banks that this country's banking industry was built off of. You know, those banks that gave out loans to people who they expected to pay those loans back. Banks who kept loans on balance sheet and knew their borrower. In a nutshell, a true bank derives its income from lending and closely related services, while an investment bank, brokerage firm or investment fund derives its income from transaction and investment fees and investment returns.The latter is significantly riskier than the former, yet despite this fact, the latter is much more heavily subsidized and favored by the powers that be than the former.

Well, it appears as if at least one (or two) arms of the Federal government is favoring the former, with a whole slew of alphabetical programs, TARP, this and that, not to mention explicity guarantees that they will not let these banks fail due to their size and the risk they pose to the financial system overall. Of course, they then encourage these banks to get even bigger and pose and even greater threat to the system (see links below).

We have compared the revenue breakup for the top 20 commercial banks with smaller midsized banks (market cap b/w- $250-$1,00 mn).  Large commercial banks on an average derive only 50% of their revenues from core banking operations (net interest income) compared with an average 73% for smaller sized banks.  Even the max Net Interest Income / Total Income for large sized banks (64%) is less than the average of 73% for small and midsized banks. Despite higher risks taken by large commercial banks (undercover hedge/speculative investment funds), as evident from higher proportion of non interest income, these banks have received disproportionate funds from Fed under various programs.

Net Interest Income / Total Income

 

Average

Median

Min

Max

Top 20 banks

50.5%

55.2%

26.2%

64.3%

Banks with market cap of $250 mn to $1 bn

73.1%

74.3%

43.2%

92.6%

  More on the need to break up the big banks:

  1. The Fed Believes Secrecy is in Our Best Interests. Here are Some of the Secrets
  2. Why Doesn't the Media Take a Truly Independent, Unbiased Look at the Big Banks in the US?
  3. As the markets climb on top of one big, incestuous pool of concentrated risk...
  4. Any objective review shows that the big banks are simply too big for the safety of this country
  5. Why hasn't anybody questioned those rosy stress test results now that the facts have played out?
  6. An Independent Look into JP Morgan