Using Veritas to Construct the "Per…

29-04-2017 Hits:24106 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...

Read more

The Veritas 2017 Token Offering Summary …

15-04-2017 Hits:25478 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.

Read more

What Happens When the Fund Fee Fight Hit…

10-04-2017 Hits:25161 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...

Read more

Veritaseum: The ICO That's Ushering in t…

07-04-2017 Hits:26706 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...

Read more

This Is Ground Zero for the 2017 Veritas…

03-04-2017 Hits:26499 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...

Read more

What is the Value Proposition For Verita…

01-04-2017 Hits:28864 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...

Read more

This Real Estate Bubble, Like Some Relat…

28-03-2017 Hits:18120 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...

Read more

Bloomberg Chimes In With My Warnings As …

28-03-2017 Hits:27690 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...

Read more

Our Apple Analysis This Week - This Comp…

27-03-2017 Hits:27729 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...

Read more

The Country's First Newly Elected Lame D…

27-03-2017 Hits:27935 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...

Read more

Sears Finally Throws In The Towel Exactl…

22-03-2017 Hits:29672 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.

Read more

The Transformation of Television in Amer…

21-03-2017 Hits:29266 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...

Read more

From Bloomberg: Germany Seeks IMF Role for Greece in Reversal, CDU Lawmaker Meister Says

March 17 (Bloomberg) -- Greece should turn to the International Monetary Fund if it needs aid, the chief finance spokesman for German Chancellor Angela Merkel’s party said, in a reversal that signals a rift with European leadersJean-Claude TrichetJean-Claude Juncker and Nicolas Sarkozy.

“We have to think about who has the instruments to push for Greece to restore its capital-markets access” if ultimately needed, Michael Meister, a lawmaker with Merkel’s Christian Democratic Union, said today in an interview in Berlin. “Nobody apart from the IMF has these instruments.” Attempting a Greek rescue “without the IMF would be a very daring experiment.”

Daring indeed! As my subscribers know, there has been a lot of creativity in coming up with those "austerity" plans (subscribers, see File IconGreece Public Finances Projections). I wouldn't bet the farm on their ability to accomplish their stated goals. For those that don't have a paid subscription, reference my Greek Tragedy in prose: "Greek Crisis Is Over, Region Safe", Prodi Says - I say Liar, Liar, Pants on Fire! Don't forget to notice the optimism...

The Greek government's macroeconomic assumptions also seem overstated when compared with EU estimates.

greek_debt_forecast.png

image038.png

The German shift underscores Merkel’s attempts to steer clear of any commitment to a Greek bailout and risks scuttling European Union efforts to establish a contingency plan for the debt-strapped nation. Merkel used a budget speech in parliament in Berlin today to caution against “overly hasty” pledges of financial support.

While EU leaders on Feb. 11 pledged coordinated action to safeguard financial stability in the euro area, they’ve yet to spell out aid plans for Greece. Juncker said March 15 that the euro-area group of finance ministers he heads “clarified the technical arrangements” to enable action.

“The problem has to be solved from the Greek side and everything that is being considered has to be oriented in that direction,” Merkel told lawmakers. “There’s no alternative” to the Greek government’s measures to cut the deficit, she said.

Therein lies the problem. It can't be solved from the Greek side in the near term without a default or devaluation. Even then, we are talking a very deep recession. Greece's remedies appear to lie outside of the EU, and Greece is not alone, either. 

EU Warning

Merkel was speaking as the EU warned that a dozen member governments, Germany among them, risk missing their deficit targets. Greek Prime MinisterGeorge Papandreou, whose government has pledged to narrow the euro-region’s biggest budget deficit, met with European Commission President Jose Barroso in Brussels today.

Fair not, dear reader. I will have similar analyses of Italy, Spain, Ireland, the UK and German coming up next. Germany is in more hot water than many realize, as is much of the EU. I may even be able to release the Italian analysis tomorrow.

“Greece is a member of the IMF and should avail itself of IMF aid first,” Frank Schaeffler, deputy finance spokesman in parliament for the Free Democrats, said in an interview. “I think this is the right instrument but it’s the Greeks who hold the key to it.”

‘Solve Their Problems’

Any IMF involvement would signal an about-face from Finance MinisterWolfgang Schaeuble’s position of March 17, when the Welt am Sonntag newspaper cited him as saying that accepting IMF help would be an “admission that the euro countries can’t solve their problems by their own means.”

It's not an about face! He is actually admitting in public "that the euro countries can’t solve their problems by their own means.” He did not recant his original statement. The positive spin to this story is showing.

Juncker, who is Luxembourg’s finance minister and prime minister, said March 5 after meeting with Papandreou that there’s a need for “technical assistance from the IMF” without the fund “taking the lead.” The previous day, European Central Bank President Trichet said “I don’t trust that it would be appropriate to have the introduction of the IMF as a supplier of help.”

For that would relegate Greece to the level of emerging market and third world nations that needed IMF assistance, at least in the eyes of many speculators. 

Standard & Poor’s affirmed Greece’s investment-grade BBB+ rating yesterday and dropped the country from “creditwatch negative,” saying the budget cuts “were appropriate to achieve” the goal of cutting the EU’s biggest deficit to 8.7 percent of gross domestic product this year from 12.7 percent.

Standard and Poors also rated many subprime CDOs and MBS AAA as well! 

“The Germans see the same thing that all of us see: that at the end of the day, they’re going to be part of the solution and it’s going to cost them something,” said Paul Hofheinz, president of the Lisbon Council, a Brussels research group. “When push comes to shove, I don’t think anyone doubts that the Germans will be part of this settlement. But why should they play easy?”

They are going to pay for Greece's woes, actually for the ill-prepared construction of the EU, regardless of whether they send funds to Greece or not. A Greece failure will reverbrate through the EU one way or the other.