Sears Finally Throws In The Towel Exactl…

22-03-2017 Hits:943 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:1156 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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It's the Real Estate Crash That I Warned…

20-03-2017 Hits:1632 BoomBustBlog Reggie Middleton

It's the Real Estate Crash That I Warned You About (again)

I've issued several warnings late last year warning of the real estate bubble peaking and popping. I feel I'm especially qualified to do such since I quite accurately called the...

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When It Comes Time To Show and Prove, Eq…

20-03-2017 Hits:1392 BoomBustBlog Reggie Middleton

When It Comes Time To Show and Prove, Equity Markets May Drop Hard

The markets have gotten euphoric since the Trump election, apparently because someone believed what he was selling. Take a look at the broad market jump (powered greatly by the bank...

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So, Brexit Is Now Almost Official. Is Th…

20-03-2017 Hits:658 BoomBustBlog Reggie Middleton

Note: All downloadable legacy content is for subscribers only. We currently have a sale for $11 per month for basic access. Professional subscribers are now evevated to have direct access...

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In Less Than Two Weeks, Another Bitcoin …

17-03-2017 Hits:2178 BoomBustBlog Reggie Middleton

In Less Than Two Weeks, Another Bitcoin ETF Faces SEC Deadline - It's Denial Is NOT A Bearish Event

LedgerX's "SOLIDX BITCOIN TRUST" has an approval deadline this March 30th, 2017.If it is approved, Bitcoin is due for one hell of a bump, but...  

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The Fed Raises Rates While Still Baby Fe…

17-03-2017 Hits:2008 BoomBustBlog Reggie Middleton

The Fed Raises Rates While Still Baby Feeding the MBS Market With Billions in Monthly Purchases

The Fed has raised rates, officially making real what was mere signaling of the end of its expansionary era... Or is it? You see, from a practical perspective, QE is...

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A Bitcoin ETF or Similar Regulated Insti…

16-03-2017 Hits:2561 BoomBustBlog Reggie Middleton

A Bitcoin ETF or Similar Regulated Institutional Vehicle is a Forgone Conclusion - What Happens Next?

Someone with over 53 years on Wall Street sent me this article from Lex of the Financial Times...

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Why the Winelvoss Bitcoin ETF Was Reject…

13-03-2017 Hits:3371 BoomBustBlog Reggie Middleton

Why the Winelvoss Bitcoin ETF Was Rejected and How to Create a Regulated Vehicle That Passes Muster

 The Winkelvoss ETF application was rejected by the SEC, and bitcoin dropped about 20% in price. I repetitively warned those that followed me that a very low risk buying opportunity...

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Trump Calls Obama's Policies On Russia W…

10-03-2017 Hits:3042 BoomBustBlog Reggie Middleton

 Donald Trump's recent Tweet discusses how Russia has gotten stronger at the behest of President Obama.   For eight years Russia "ran over" President Obama, got stronger and stronger, picked-off Crimea and...

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SNAP's Greed Derived Self-Inflicted Woun…

08-03-2017 Hits:4107 BoomBustBlog Reggie Middleton

SNAP's Greed Derived Self-Inflicted Wounds Continue to Manifest

The day before the SNAP IPO, I penned "Goldman Sachs & Morgan Stanley Pull Off the Heist of the Decade, Bends Over Those Who Don't Read BoomBustBlog". Despite being rather...

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Bitcoin Is Reaching the Point of No Retu…

08-03-2017 Hits:3834 BoomBustBlog Reggie Middleton

Bitcoin Is Reaching the Point of No Return - Buy Side Should Take Note

Many bitcoin aficionados are waiting with baited breath as the SEC is to announce by this Friday whether they will approve the first registered bitcoin ETF. This is not the...

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Observation: MBIA is forced to borrow at deep junk rates (14%) in a 7% environment (surplus notes have a slight premium). These notes then go on to trade at an immediate discount, yielding 20%.

Observation: MBIA had to reduce, then cut its dividend to preserve capital (they didn't even have a chance to pay out the reduced dividend).

Observation: MBIA has diluted there current shareholders by considerably over 50%, raising discounted equity capital in amounts that approach what was thier extant market capitalization. This was on top of the record cost of the debt offering, at least for a "AAA" company!

Obervation: MBIA has lost more then 80% of its equity value in less than a year. 

Observation: MBIA has recorded two historic and unprecedented losses, back to back, and foresee several more to come.

Observation: MBIA has written down to zero the interests in its captive reinsurer.

Observation: MBIA's captive reinsurer lost its AAA rating, cut to A-, thus forcing it swallow those risks.

Observation: MBIA as insured securities and structures with minimal loss history and nearly no legal precedent in how to handle conflicts during losses and liquidations, on an underlying of that is going through the biggest correction/bust in the history of this country's financial system.

Observation: MBIA now has competition from a better capitalized, cleaner, and arguably better managed competitor that is eating into its business at a rate as fast as 60 clients per day.

Observation: MBIA reinsures, and is reinsured by very small circle of entities whom concentrate very highly correlated risks using more than 80x leverage.

Observation: MBIA's insurance of leveraged loans and junk bond CDOs has not surfaced yet, but I'm pretty sure its there.

Final Observation and Conclusion: S&P has just affirmed the highest credit rating available to this company. This is a damn shame! This does not confirm the creditworthiness of MBIA, it devalues the meaning and worth of the AAA moniker. Shame on you S&P.