HSBC Reports One of the Biggest Misses o…

21-02-2017 Hits:118 BoomBustBlog Reggie Middleton

HSBC Reports One of the Biggest Misses of the Year, We Warned Quite Thoroughly in September

Our HSBC research report released September of 2016 has proven to be 110% correct. This is the first sentence of our report: HSBC Common Equity Returns: Notwithstanding a possible boost from...

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Censorship, Autonomy and Risk Management…

19-02-2017 Hits:486 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...

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

16-02-2017 Hits:943 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...

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

16-02-2017 Hits:474 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...

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T-Mobile Has Eliminated Most of Verizon'…

15-02-2017 Hits:526 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?

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Association with Donald Trump Cost Uber …

13-02-2017 Hits:557 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...

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Verizon Unlimited, T-Mobile Upgrades, Sp…

13-02-2017 Hits:1310 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...

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Fitch Has Effectively Downgraded The Tru…

10-02-2017 Hits:661 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...

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Chinese Bitcoin Exchanges Suspend Client…

09-02-2017 Hits:812 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...

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Will Japan's Declaration of Bitcoin as L…

09-02-2017 Hits:866 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...

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Deutsche Bank's Year End Analysis and Re…

08-02-2017 Hits:1049 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...

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Revisiting the Breakdown of the Macro Dr…

07-02-2017 Hits:724 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...

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For those that have been perusing my blog, you know that I am as bearish now as they come. But the extent of this cut is shocking, and the rationale is even more shocking. The reason we are where we are now was too much cheap money for too long. This caused a big bubble (actually, 2 bubbles) to burst. What's the prescription for this ailment? More cheap money, of course. There is nothing like a little over proof rum to make you forget you have a hangover.

Bernanke says that the real estate bust spreading is risking the health of the broader economy. The bust came from a bubble, which came from dropping interest rates. This most recent drop just may exacerbate it. Residential mortgage rates are tied to the 10 year note and commercial mortgage rates are tied to USD LIBOR. Both have decoupled from the Fed Funds rate, as Greenspan has attested.

So, now that you have dropped rates Mr. Fed, what happens when mortgage rates move up anyway? Much of the tightening is already happening because the liquidity in the market from securitization has dried up. No amount of loosening policy will alter that in the medium term.

Addendum: the 10 year T note yield is up, and as a result, the 5 year ARM has increased from last week. The housing market is a mess, not due to interest rates, but due to the fact that sloppy underwriting reigned supreme. People who got houses they can't afford will have to lose them for this to be over, period. Even the CEO of Hovnanian is guilty of taking advantage of sloppy underwriting to buy into the top of a bubble, then trying to borrow his way out of it - and he runs one of the largest homebuilders in the country!!! Mortgage rates can go down and we will still have a housing problem, for too many people got mortgages they simply cannot afford.

'Nuff said.