Censorship, Autonomy and Risk Management…

19-02-2017 Hits:371 BoomBustBlog Reggie Middleton

Censorship, Autonomy and Risk Management When Dealing With Digital Assets: How to Minimize Risk of Loss

This is a video on the topic of the qualities of Bitcoin blockchain's censorship-proof attributes and how they apply in the world we live in today. It is imperative that you...

Read more

How to Use, Trade, Store and Invest in B…

16-02-2017 Hits:805 BoomBustBlog Reggie Middleton

How to Use, Trade, Store and Invest in Bitcoin Digital Assets - Step by Step, Part 1

I will teach novices and experts alike how to fit Bitcoin into an investment portfolio safely and with the optimum risk-adjusted potential - along with step-by-step guides, instructions and tutorials. This...

Read more

Italy Approves 1.2% of GDP to Save It's …

16-02-2017 Hits:438 BoomBustBlog Reggie Middleton

Italy Approves 1.2% of GDP to Save It's Troubled Banks... Again! Exactly As We Warned Last Year

I've been warning about Italy's troubled banks since 2010, and last year I pushed two very detailed reports about what was essentially Italy's Bear Stearns and Lehman Brothers. Italy is a...

Read more

T-Mobile Has Eliminated Most of Verizon'…

15-02-2017 Hits:489 BoomBustBlog Reggie Middleton

T-Mobile Has Eliminated Most of Verizon's Network Advantages At A Lower Price Point - Uh Oh!

T-Mobile reported their Q4 2016 results yesterday, and guess what?

Read more

Association with Donald Trump Cost Uber …

13-02-2017 Hits:519 BoomBustBlog Reggie Middleton

Association with Donald Trump Cost Uber $200 Million in 45 Days, Other Companies Feel It Too

Uber's CEO perceived association with Donald Trump (sitting on his tech advisory panel) has caused a viral #DelteUber campaign, resulting in over 200,000 Uber accounts deleted in 45 days. Videos of the...

Read more

Verizon Unlimited, T-Mobile Upgrades, Sp…

13-02-2017 Hits:1274 BoomBustBlog Reggie Middleton

Verizon Unlimited, T-Mobile Upgrades, Sprint Drops Prices Through Floor: The Deadbeat Carriers are Beating Themselves To Death

Update: T-Mobile responds to Sprint & Verizon price cuts but adding additional features to its fixed rate plan. Competition continues to benefit the consumer, but net margins will be/are hovering...

Read more

Fitch Has Effectively Downgraded The Tru…

10-02-2017 Hits:635 BoomBustBlog Reggie Middleton

Fitch Has Effectively Downgraded The Trump Administration, Albeit Too Late As Usual

After my many, many warnings about Donald Trump and his administration (I'll list those a little later)... It's official, Fitch has actually warned that the Trump administration is detrimental to...

Read more

Chinese Bitcoin Exchanges Suspend Client…

09-02-2017 Hits:775 BoomBustBlog Reggie Middleton

Chinese Bitcoin Exchanges Suspend Client Withdrawals. I Warned You About Heteronomous Wallets!

Bitcoin.com reports "Chinese Exchanges Suspend Withdrawals for One Month": The two largest Chinese Bitcoin exchanges have suspended Bitcoin and Litecoin withdrawals for one month. The news follows China’s central bank...

Read more

Will Japan's Declaration of Bitcoin as L…

09-02-2017 Hits:834 BoomBustBlog Reggie Middleton

Will Japan's Declaration of Bitcoin as Legal Tender Accelerate Cryptocurrency Mainstream Adoption?

It’s being reported by Sputnik News and other sources that Japan has declared Bitcoin to be legal tender. Unfortunately, I have not been able to quickly confirm this through Japanese...

Read more

Deutsche Bank's Year End Analysis and Re…

08-02-2017 Hits:1013 BoomBustBlog Reggie Middleton

Deutsche Bank's Year End Analysis and Review - BoomBustBlog Style

This is our Q4 analysis of Deutsche Bank. When analyzing and valuing entities such as banks and platform-driven tech companies, perception is always key. You see, what one maverick or...

Read more

Revisiting the Breakdown of the Macro Dr…

07-02-2017 Hits:696 BoomBustBlog Reggie Middleton

Revisiting the Breakdown of the Macro Drivers Behind Bitcoin's Price Spike, Exactly As I Foretold 30 Day Ago

One month ago I walked through the macro influences behind Bitcoin's price pop and drop in "The Macro Truth About The Big Bitcoin Pop and Drop: The Mainstream Media Doesn't...

Read more

It Took 7 Years To Put Dodd-Frank Into P…

06-02-2017 Hits:1009 BoomBustBlog Reggie Middleton

It Took 7 Years To Put Dodd-Frank Into Place, What Are Chances It Will Be Repealed In Less Than Four?

Bloomberg reports: Dodd-Frank’s Tentacles Go Deep. They Won’t Be Cut Fast or Easily. It took seven years to put these regulations in place. Is it rational to think they can be...

Read more

This was contributed by ChrisM regarding the recent banking meeting in Europe and my comments:

The meeting here in Basel has been very interesting, the main points are:

1) they don't expect the economy to slow much further in the second half.

In regards to the US and UK, I don't see much evidence to support this.


2) they are concentrating on fighting inflation first, before growth.

 This should have been number one priority from the beginning. Inflation is still woefully understated by government numbers. On the boat ride, I shared with the fellow boombustbloggers my observation that effective housing price inflation is still rampant. Nominal prices have dropped sharply across the country, but affordability is actually way down in many areas, due primarily to the tightening of credit. The largest barrier for home purchasers for the middle and working class is the down payment. This barrier has increased significantly after the mortgage markets came back to reality, thus even though prices may have drop by 20% or so, required down payments on those houses have increased as much as 100% to 400% (think from 5% down piggyback 2nd mortgages to 10% to 20% conventional mortgages with PMI).

In addition, interest rates have moved up sharply and maintenance costs have skyrocketed with the cost of commodity inflation. This does not take into account the cost of heating homes, which may have effectively doubled in the past year.

Fuel, housing and food are still stripped from the core rate reading, yet they are the most ubiquitous of consumer purchases and all have advanced nearly or more than 100% in the past year or so (sans food, which still went up a lot).

 

3) they have suggested that "parking" bad debts, by the central banks, to assist commercial/investment banks is a bad idea.

I agree wholeheartedly.

 

4) they have further suggested that the institutions should sell these instruments at market rates, to establish a true value, to hopefully achieve a bottom to valuations.

Without doing so, no serious investors will ever trust them. They must swallow the short term pain in order to gain long term clarity. Then again, foreign investors have agreed to pour good money after bad. I theorize that petrodollars and SE Asian manufacturing money are attempting to get monetized through the major financial systems of the US and the UK, but they are only willing to take but so big a loss in the "legitimate laundering" of their monies into these developed nations financial systems. After a while, they should grow weary. Remember, I stated that the introduction of foreign monies purchasing assets en masse tends to denote a sharp drop in asset value. Think back to US acquisition of foreign automobile companies, the Asian acquisition of overheated US real estate in 80's (Japan was supposed to take over the world back then), and the Japanese investment in consulting companies (ex. Deloitte and Touche). 


Obviously the FED does not have to heed these suggestions, but the warning by the Chinese today to stabilise the dollar, is a veiled threat that they may stop buying US debt.

Points 3 and 4 will see the banks tank (again), the next 3 months should be interesting.