Using Veritas to Construct the "Per…

29-04-2017 Hits:87948 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:81754 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:81618 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:86106 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:82569 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:84718 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:55802 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:84021 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:83743 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:83621 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:90023 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:87620 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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As illustrated in detail in my analysis, Bear Stearns is in some real trouble. CNBC reports that the US attorney is intensifying its investigation of the bank and an indictment is increasingly possible. In addition, Bear Stearn's exposure to the mortgage and real estate markets are sinking it. I expect:

  • $121 million in losses in CMBS,
  • $172 million in Alt A residential
  • $363 milion in ARMs
  • $4 million in Helocs
  • $402 million in midprime loans
  • $148 million in 2nd lien loans
  • and $1.4 BILLION in subprime loans.

 

A total of at LEAST $2.7 bilion in losses will be coming down on the Bear, devastating equity capital. I have scoured through roughly 30% of Bear Stearns entire ABS holdings, and these losses are from just that 30%. You can download the list of approximately 3,600 CDOs, loans, securities and related assets here:

icon Bear Stearns ABS inventory (1.56 MB 2008-02-07 09:42:27).

Asset Class Data Total
AltA Sum of BASE CASE LOSSES 171,716,337

Sum of Optimistic Case Losses 145,838,684

Sum of Worst Case Losses 223,471,645
AltA ARM Sum of BASE CASE LOSSES 363,177,975

Sum of Optimistic Case Losses 312,628,121

Sum of Worst Case Losses 464,277,684
CMBS Sum of BASE CASE LOSSES 121,477,512

Sum of Optimistic Case Losses 97,193,113

Sum of Worst Case Losses 168,432,011
Corporate Sum of BASE CASE LOSSES 481,250

Sum of Optimistic Case Losses 412,500

Sum of Worst Case Losses 550,000
HELOC Sum of BASE CASE LOSSES 4,104,225

Sum of Optimistic Case Losses 3,536,575

Sum of Worst Case Losses 5,239,525
Midprime Sum of BASE CASE LOSSES 402,412,147

Sum of Optimistic Case Losses 324,994,889

Sum of Worst Case Losses 557,246,661
Other ABS Sum of BASE CASE LOSSES 16,539,550

Sum of Optimistic Case Losses 12,396,275

Sum of Worst Case Losses 24,576,100
Prime Sum of BASE CASE LOSSES 52,647,715

Sum of Optimistic Case Losses 36,306,265

Sum of Worst Case Losses 86,379,593
Second Sum of BASE CASE LOSSES 147,610,602

Sum of Optimistic Case Losses 124,662,519

Sum of Worst Case Losses 170,558,685
Subprime Sum of BASE CASE LOSSES 1,436,911,912

Sum of Optimistic Case Losses 1,272,055,456

Sum of Worst Case Losses 1,766,624,824
Total Sum of BASE CASE LOSSES 2,717,079,225
Total Sum of Optimistic Case Losses 2,330,024,396
Total Sum of Worst Case Losses 3,467,356,728
     
     
     
  Losses under various scenario from exposure towards bond insurers in US$
 

  Total Sum of Base Case Losses 2,717,079,225
  Total Sum of Optimistic Case Losses 2,330,024,396
  Total Sum of Worst Case Losses 3,467,356,728