Yesterday, I bluntly called out the European state of economic affairs as I saw them in "Liar, Liar, European Pants on Fire!" Today, I present the article published by Property EU, one of the leading real estate publications in Europe which illustrates much of my thoughts on the topic of how and why Europe is nowhere near out of its economic malaise, and more importantly how this may pull the value of real estate down. The vast majority of European banks lend against real estate and when the value of said collateral goes down in conjunction with the value of what many are carrying on their books at par as risk free and hold to maturity assets at 30+x leverage... Well, you can use your imagination for the Lehman like results... 
This week I will go through several property devaluation scenarios as applied to what looks like very promising cash flow scenarios using real life examples of NYC commercial real estate starting tomorrow, and culminating with a more in depth analysis for subscribers next week. The most interesting part of the analysis will be the application of our real asset protection program to hedge against the risk of property value decline. Stay tuned, it should be exciting, and if you are not a finance nerd like me - at the very least interesting...

Published in BoomBustBlog

Reggie Middleton with Max Keiser on the Keiser Report and RTT Television

Go to 12:20 in the video to see the portion with Reggie Middleton

[youtube jQwlElVfdHY]

The topics in this interview stem from the post Four Facts That BANG JP Morgan That You Just Won’t Hear From The Sell Side!!!

On the difference between accounting earnings and economic earnings...

... accountants have not been – and currently are not, trained in the economic realities of corporate valuation. They are trained to tabulate business operations data. There is a marked and distinct difference. That difference is as stark as night and day for investors, yet despite this stark difference, Wall Street still reports corporate performance metrics strictly in accounting terms, and the media (both mainstream and the more specialized financial media) simply follow suit. Hence we hear much about easily manipulable and manageable accounting earnings, revenues, operating margins, earnings per share, etc. These measures are highly flawed in a variety of ways, with the primary flaw being that they do not account for the efforts both required and undertaken to achieve them. Basically, they measure JUST HALF (and coincidentally, the positive half may I add) of the risk/reward equation that should be at the root of every investors move. Long story short, they do not account for, nor do they EVEN RESPECT, the cost of capital. This concept ties in closely with Chairman Bernanke’s current course of action as well as the ZIRP discussion later on this missive demonstrates (capital offered at zero cost causes reckless abandonment of risk management principles which eventually causes crashes – yes, more crashes). Acknowledgment of the cost of capital enforces a certain discipline on both corporate management and investors/traders. Without respect for such, it is much too easy to create and portray a scenario that is all too rosy, since we are only looking at rewards but never bother to glance at the risks taken to achieve said rewards. I reviewed this concept in detail as it relates to bonuses and compensation on Wall Street in The Solution to the Goldman (and by Extension, the Securities Industry) Compensation Dilemma.

Published in BoomBustBlog
Tuesday, 19 October 2010 02:18

Reggie Middleton on CNBC

For those who haven't seen it yet, here is my interview on CNBC with Herb Greenberg - who I must say is a very good investigative reporter. Kudos, my friend!

Published in BoomBustBlog

Interested parties can check me out on Bloomberg TV tomorrow: "Street Smart" with Matt Miller & Carol Massar at 3:30 pm.

Published in BoomBustBlog

Crains NY ran a happy, go lucky article today:

The stubbornly dismal economy means at least one thing: an extended stay in the spotlight for a handful of star analysts whose defining characteristic is their extraordinary bearishness. And, of course, their accuracy.

There's Albert Edwards, a London-based analyst from France's Société Générale, who believes the Standard & Poor's 500 will sink to 450, a sickening 57% drop from its current level. There's David Rosenberg, chief economist at Toronto money manager Gluskin Sheff, who warns that deflation is going to pull down the U.S. economy for years.

And then there's the New York star of this gloomy show: Reggie Middleton, a Brooklyn entrepreneur who turned to analyzing global markets after a stint buying and renovating apartments in Fort Greene and Clinton Hill. (See “Prophet of doom,” April 19.)

Bad as things may be for the economy, Mr. Middleton warns that they're poised to get much worse. Prices of real estate, stocks and bonds are all headed for serious falls... Wages will decrease, unemployment will increase. Fun, eh?

...

The culprit, Mr. Middleton says, is Washington. The bank bailouts, nationalization of Fannie Mae and Freddie Mac, and other interventions during two presidencies prevented the market from bottoming out in 2009 like it should have, he says. Now that the economy is weakening again and the heavily indebted U.S. government has fewer rescue options, the reckoning is coming. Markets of all kinds in the United States and Europe will get hit—hard.

“In my opinion, the amount of risk in the system is even higher than in 2008,” he says, adding this rare dash of hope: “2013 might be a good time to start taking a look at buying assets again.”

Mr. Middleton has been startlingly accurate in the past. He forecast the collapse of the housing market in 2007, and in early 2008 warned of the demise of Bear Stearns weeks before it happened. Earlier this year, he said that Ireland's finances were in terrible shape long before Standard & Poor's got around to downgrading that nation's credit rating.

For those of you who don't follow my blog, Mr. Elstein (the article's author) was referring to:

Published in BoomBustBlog
Wednesday, 28 July 2010 06:29

Jim Rogers Channels This Blog on CNBC?

Click the link for the CNBC video below and fast forward to 2:48 and you will see Jim Rogers offer the 10 second version of Reggie Middleton's take on the banking stress tests. Absolutely priceless!

07:05

Published in BoomBustBlog

Reggie Middleton is an entrepreneurial investor who guides a small team of independent analysts to uncover truths, seldom if, ever published in the mainstream media or Wall Street analyst reports.

Reggie Middleton Wins CNBC's First Ever Stock Draft Investment Contest, and Does So By A Wide Margin!

Reggie Middleton's The Only Investor/Analyst To Publicly & Timely Call To Short Apple At It's All Time High and Go Long Google On CNBC!

The Financial Nostradamus!

Who Is Reggie Middleton & What Is BoomBustBlog?

Since the inception of his BoomBustBlog, he has established an outstanding track record, including but not limited to, the call of....

  1. The housing market crash in the spring of 2006 and publicly in September of 2007: Correction, and further thoughts on the topic and How Far Will US Home Prices Drop?
  2. Home builders falling and their grossly misleading use of off balance sheet structures to conceal excessive debt in November of 2007 (not a single sell side analyst that we know of made mention of this very material point in the industry): Lennar, Voodoo Accounting & Other Things of Mystery and Myth!
  3. The collapse of Bear Stearns in January 2008 (2 months before Bear Stearns fell, while trading in the $100s and still had buy ratings and investment grade AA or better from the ratings agencies): Is this the Breaking of the Bear? | After the collapse, a prudent bullish call as well... Joe Lewis on the Bear Stearns buyout Monday, March 17th, 2008: "The problem with the deal is that it is too low, and too favorable for Morgan. It is literally guaranteed to drive angst from the other side. Whenever you do a deal, you always make sure the other side gets to walk away with something.  If you don’t you always risk the deal falling though unnecessarily. $2 is a slap in the face to employees who have lost a life savings and have the power to block the deal. At the very least, by the building at market price and get the company for free!" | BSC calls are almost free and the JP Morgan Deal is not signed in stone Monday, March 17th, 2008 | This is going to be an exciting, and scary morning Monday, March 17th, 2008 | As I anticipated, Bear Stearns is not a done deal Tuesday, March 18th, 2008 [Bear Stearns stock goes from $1 and change to $10, front month calls literally explode from pennies to several dollars]

  4. The warning of Lehman Brothers before anyone had a clue!!! (February through May 2008): Is Lehman really a lemming in disguise? Thursday, February 21st, 2008 | Web chatter on Lehman Brothers Sunday, March 16th, 2008 (It would appear that Lehman’s hedges are paying off for them. The have the most CMBS and RMBS as a percent of tangible equity on the street following BSC. The question is, “Can they monetize those hedges?”. I’m curious to see how the options on Lehman will be priced tomorrow. I really don’t have enough. Goes to show you how stingy I am. I bought them before Lehman was on anybody’s radar and I was still to cheap to gorge. Now, all of the alarms have sounded and I’ll have to pay up to participate or go in short. There is too much attention focused on Lehman right now. ) | I just got this email on Lehman from my clearing desk Monday, March 17th, 2008 by Reggie Middleton | Lehman stock, rumors and anti-rumors that support the rumors Friday, March 28th, 2008 | May 2008
  5. The fall of commercial real estate in general (September of 2007) and the collapse of General Growth Properties [nation's 2nd largest mall owner] in particular (November 2007):
    1. Will the commercial real estate market fall? Of course it will.
    2. Do you remember when I said Commercial Real Estate was sure to fall?
    3. The Commercial Real Estate Crash Cometh, and I know who is leading the way!
    4. Generally Negative Growth in General Growth Properties - GGP Part II
    5. General Growth Properties & the Commercial Real Estate Crash, pt III - The Story Gets Worse
    6. BoomBustBlog.com’s answer to GGP’s latest press release and Another GGP update coming… (among over 700 pages of analysis, review the January 2008 archives or search for “GGP” for more research).
  6. The collapse of state and municipal finances, with California in particular (May 2008): Municipal bond market and the securitization crisis – part 2
  7. The collapse of the regional banks (32 of them, actually) in May 2008: As I see it, these 32 banks and thrifts are in deep doo-doo! as well as the fall of Countrywide and Washington Mutual
  8. The collapse of the monoline insurers, Ambac and MBIA in late 2007 & 2008: A Super Scary Halloween Tale of 104 Basis Points Pt I & II, by Reggie Middleton, Welcome to the World of Dr. FrankenFinance! and Ambac is Effectively Insolvent & Will See More than $8 Billion of Losses with Just a $2.26 Billion
  9. The overvaluation of Goldman Sachs from June 2008 to present): “Can You Believe There Are Still Analysts Arguing How Undervalued Goldman Sachs Is? Those July 150 Puts Say Otherwise, Let’s Take a Look”, “When the Patina Fades… The Rise and Fall of Goldman Sachs???“andReggie Middleton vs Goldman Sachs, Round 2)
  10. The ENTIRE Pan-European Sovereign Debt Crisis (potentially soon to be the Global Sovereign Debt Crisis) starting in January of 2009 and explicit detail as of January 2010: The Pan-European Sovereign Debt Crisis
  11. Ireland austerity and the disguised sink hole of debt and non-performing assets that is the Irish banking system: I Suggest Those That Dislike Hearing “I Told You So” Divest from Western and Southern European Debt, It’ll Get Worse Before It Get’s Better!
  12. The mobile computing paradigm shift, May 2010: »

Reggie Middleton Singularly Moves The Irish Banking System, Apparently Motivates Top Banking Regulator To Resign

We believe Reggie Middleton and his team at the BoomBust bests ALL of Wall Street's sell side research: Did Reggie Middleton, a Blogger at BoomBustBlog, Best Wall Streets Best of the Best?

There are several ways through which you can interact directly with Reggie:

Mr. Middleton Receives Positive Press Coverage, Worldwide!

“His work is so detailed, so accurate, it’s among the best in the world,” says Eric Sprott, CEO of Sprott Asset Management, a Toronto firm that manages about $5 billion and subscribes to Mr. Middleton’s research.

Reggie Middleton Featured in Property EU, one of Europes leading real estate publicatios

Those who wish to download the full article in PDF format can do so here: Reggie Middleton on Stagflation, Sovereign Debt and the Potential for bank Failure at the ING ACADEMY-v2.

Reggie Middleton on the Peter Schiff Show Discussing Facebook

Reggie Middleton on Max Keiser ZIRP and Treasury Ponzi Scheme

Reggie Middleton takes a Bite out of Apple on his trip back from Abu Dhabi & Dubai

Reggie Middleton on Goldman Sachs Business Model

On Greek Bailouts

On the Greek Bailouts...

Interesting documentary on the rating agencies' effect on the sovereign debt crisis in Europe, produced by VPRO Tegenlicht out of Amsterdam. Reggie Middleton appears in the following spots: 4:00, 22:30, 40:00...

Reggie Middleton Discussing the Rating Agencies effect on Sovereign Europe


Reggie Middleton currently leading the CNBC Stock Draft Pick contest

Reggie Middleton Explains the Travails of the F.I.R.E. Sector on CNBC

Reggie Middleton interviewed on Russion Television's Max Keiser discussing re-hypothecation thourgh MF Global at 12:32 in the video

Reggie Middleton interviewed on Russion Television's Capital Account on MF Global, Goldmand Sachs and Vampire Squids

Reggie Middleton interviewed on Russion Television's Capital Account concernign the European debt crisis and bank contation

Reggie Middleton on Mas Keiser discussing BNP Paribas bank runs and the potential collapse of French and European banks

Reggie Middleton on Mas Keiser discussing Goldman Sachs, currency debasement and ZIRP poisoning US banks

Reggie Middleton as the Keynote Speaker at the ING Real Estate Valuation Seminar in Amsterdam

Reggie Middleton as the Keynote Speaker at the ING Real Estate Valuation Seminar in Amsterdam

Reggie Middleton on Bloomberg TV's Fast Forward

Reggie Middleton on CNBC's Fast Money Discussing Hopium in Real Estate

Reggie Middleton discusses the fall of commercial real estate in the US

Another stint on Max Keiser discussing topics such as Goldman’s Facebook offering that never was, what happens when its the banks that walk away from a home, phantom banking profits that never were, and more shenanigans that are the tour de force that is today’s banking system and economy. To skip directly to the Reggie Middleton interview, move to 11:55 in the video.

Reggie Middleton on BNR Dutch News Radio

A short interview clip on BNR, in Dutch. Click here.

Reggie Middleton on CNBC's Squawk on the Street - 10/19/2010

Mr. Middleton discusses JP Morgan, bank risk and technology and is the only pundit in the financial media that we know of that called Apple's margin compression issues and did so successfully just hours before they reported! Click here or click below to see the video.

Reggie Middleton with Max Keiser on the Keiser Report and RT Television - Discussing JP Morgan, Derivatives, Fraudclosure and the US Oligarchy

Go to 12:20 in the video to see the portion with Reggie Middleton

Bloomberg TV: "The risk/reward ratio in commercial real estate does not look good!"

Bloomberg TV & Reggie Middleton on the Flawed Case Shiller Index: "That's what they said in Japan about 12 years ago, look where they are now!"

BBC World News: "It wasn't just Lehman Brothers: Regulatory Capture is the Term du Jour!"

Amsterdam's VPRO Backlight and Reggie Middleton on brutal honesty, destructive derivatives and the "overbanked" status of many European sovereign nations

BBC World News Today and Reggie Middleton on the Obama Administration's attempt to reign in the US banking system

Amsterdam's VPRO Backlight and Reggie Middleton on brutal honesty, destructive derivatives and the "overbanked" status of many European sovereign nations

Reggie on CNN!

The bank stress tests were a sham! I know it, you know it! Everybody knew it but played along with the game anyway...

Reggie Middleton on the Young Turks: Another Economic Meltdown Coming???

Crain's New York illustrating Reggie's BoomBustBlog and the followup article in Crains illustrating his accuracy in calling real estate and the European debt debacle,"

“His work is so detailed, so accurate, it's among the best in the world,” says Eric Sprott, CEO of Sprott Asset Management, a Toronto firm that manages about $5 billion and subscribes to Mr. Middleton's research.

Reggie Middleton in Forbes (Going short)

Middleton's site combines self-promotion with meticulous financial analysis that is often delivered with a whiff of bathroom humor

Older Press Coverage and Media Appearances (samples no longer available)

  • CNNfn
  • Fortune
  • PC Magazine
  • PC World
  • BET
  • Real Estate Finance Today
  • Interactive Week
  • eWeek
  • Computer Shopper

Awards

Hedge Funds Post: Best Blogs 2008

SoUp9lMCxRg

Cron Job Starts
Published in BoomBustBlog

A very interesting article was published in Crain's New York this morning, both in print and online, titled Prophet of doom. The article was about blogs, and the potential for them to raise capital and compete with the mainstream media. There's also a picture of a devilishly handsome, charismatic, and outright cute blogger there as well :mrgreen:

Here are a few excerpts, combined with my usual commentary...

  •  Mr. Middleton's Boom Bust Blog forecast with stunning accuracy the demise of such real estate bubble blowups as Bear Stearns and mall operator General Growth Properties... Now he's embarking on his next project: Turning his blogging hobby into a full-fledged investment research business, a firm where he says investors will get “realistic” insights as opposed to Wall Street puffery. Mr. Middleton plans to start petitioning venture capital firms, private equity players and established media companies in the coming weeks.
    • Yes, it's official. I'm going to start building the blog out into something much bigger, more in depth, and more accessible.
  • “His work is so detailed, so accurate, it's among the best in the world,” says Eric Sprott, CEO of Sprott Asset Management, a Toronto firm that manages about $5 billion and subscribes to Mr. Middleton's research. Well, thank you Mr. Sprott! I owe you a good bottle of wine for that one! For those that don't follow Eric Sprott's commentary (or his investment record), this accomplished man tells it like it is. He was just on CNBC and rang the closing bell last week.

     

  • Finding investors won't be easy, though. A few bloggers have landed backers recently, including Footnoted.org, acquired by investment research firm Morningstar, and Gothamist.com, by Cablevision. But most media concerns and venture capitalists have steered clear. Many blogs' revenues are scant, with few opportunities to grow and churn out the $10 million to $15 million in revenues that venture capitalists want. “The climate for blogs is almost always lousy,” says Roger Ehrenberg, founder of IA Capital Partners, which has invested in BlogTalkRadio and BusinessInsider.com.

Published in BoomBustBlog

From Banks, Brokers, & Bullsh1+ part 1:

A thorough forensic analysis of Goldman Sachs, Bear Stearns, Citigroup, Morgan Stanley, and Lehman Brothers has uncovered...

Let’s get something straight right off the bat. We all know there is a certain level of fraud sleight of hand in the financial industry. I have called many banks insolvent in the past. Some have pooh-poohed these proclamations, while others have looked in wonder, saying “How the hell did he know that?”

The list above is a small, relevant sampling of at least dozens of similar calls. Trust me, dear reader, what some may see as divine premonition is nothing of the sort. It is definitely not a sign of superior ability, insider info, or heavenly intellect. I would love to consider myself a hyper-intellectual, but alas, it just ain’t so and I’m not going to lie to you. The truth of the matter is I sniffed these incongruencies out because  2+2 never did equal 46, and it probably never will either. An objective look at each and every one of these situations shows that none of them added up. In each case, there was someone (or a lot of people) trying to get you to believe that 2=2=46.xxx. They justified it with theses that they alleged were too complicated for the average man to understand (and in business, if that is true, then it is probably just too complicated to work in the long run as well). They pronounced bold new eras, stating “This time is different”, “There is a new math” (as if there was something wrong with the old math), etc. and so on and associated bullshit.

 

So, the question remains, why is it that a lowly blogger and small time
individual investor with a skeleton staff of analysts can uncover
systemic risks, frauds and insolvencies at a level that it appears the
SEC hasn’t even gleaned as of yet? Two words, “Regulatory Capture”. You
see, and as I reluctantly admitted, it is not that I am so smart, it is
that the regulator’s goals are not the same as mine. My efforts are
designed to ferret out the truth for enlightenment, profit and gain.
Regulators’ goals are to serve a myriad constituency that does not
necessarily have the individual tax payer at the top of the heirachal
pyramid. Before we go on, let me excerpt from a piece that I wrote on
the topic at hand so we are all on the same page: How
Regulatory Capture Turns Doo Doo Deadly

First off, some definitions:

  • The Doo Doo, as in the Doo
    Doo 32
    :
    A  list of 32 banks that I created on May 22, 2008 which set the stage for my investment
    thesis of shorting the regional banks. At that time, I was one of the
    very few, if not one of the only, to warn that the regional banks would
    hit the fan.
  • Regulatory capture (adopted from Wikipedia): A
    term used to refer to situations in which a government regulatory
    agency created to act in the public interest instead acts in favor of
    the commercial or special interests that dominate in the industry or
    sector it is charged with regulating. Regulatory capture is an
    explicit manifestation of government failure in that it not only
    encourages, but actively promotes the activities of large firms that
    produce negative externalities. For public
    choice theorists
    , regulatory capture occurs because groups or
    individuals with a high-stakes interest in the outcome of policy or
    regulatory decisions can be expected to focus their resources and
    energies in attempting to gain the policy outcomes they prefer, while
    members of the public, each with only a tiny individual stake in the
    outcome, will ignore it altogether. Regulatory capture is when this
    imbalance of focused resources devoted to a particular policy outcome
    is successful at “capturing” influence with the staff or commission
    members of the regulatory agency, so that the preferred policy
    outcomes of the special interest are implemented. The risk of
    regulatory capture suggests that regulatory agencies should be
    protected from outside influence as much as possible, or else not
    created at all. A captured regulatory agency that serves the interests
    of its invested patrons with the power of the government behind it is
    often worse than no regulation whatsoever.

About a year and a half ago, after sounding the alarm on the
regionals, I placed strategic bearish positions in the sector which
paid off extremely well. The only problem is, it really shouldn’t have.
Why? Because the problems of these banks were visible a mile away. I
started warning friends and family as far back as 2004, I announced it
on my blog in 2007, and I even offered a free report in early 2008.

Well, here comes another warning. One of the Doo Doo 32 looks to be
ready to collapse some time soon. Most investors and pundits won’t
realize it because a) they don’t read BoomBustblog, and b) due to
regulatory capture, the bank has been given the OK by its regulators to
hide the fact that it is getting its insides gutted out by CDOs and
losses on loans and loan derivative products. Alas, I am getting ahead
of myself. Let’s take a quick glance at regulatory capture, graphically
encapsulated, then move on to look at the recipients of the Doo Doo
Award as they stand now…

A picture is worth a thousand words…

fasb_mark_to_market_chart.png

So, how does this play into today’s big headlines in the alternative,
grass roots media? Well, on the front page of the Huffington
Post
and ZeroHedge, we have a damning expose of Lehman
Brothers
(we told you this in the first quarter of 2008, though),
detailing their use of REPO 105 financing to basically lie about their
liquidity positions and solvency. The most damning and most interesting
tidbit lies within a more obscure ZeroHedge article that details
findings from the recently released Lehman papers, though:

On September 11, JPMorgan executives met to discuss significant
valuation problems with securities that Lehman had posted as collateral
over the summer. JPMorgan concluded that the collateral was not worth
nearly what Lehman had claimed it was worth, and decided to request an
additional $5 billion in cash collateral from Lehman that day. The
request was communicated in an executive?level phone call, and Lehman
posted $5 billion in cash to JPMorgan by the afternoon of Friday,
September 12. Around the same time, JPMorgan learned that a security
known as Fenway,which
Lehman had posted to JPMorgan at a stated value of $3 billion, was actually asset?backed
commercial paper credit?enhanced by Lehman (that is, it was Lehman,
rather than a third party, that effectively guaranteed principal and
interest payments)
. JPMorgan concluded that Fenway was worth
practically nothing as collateral.

Hold up! Lehman was pledging as collateral allegedly “investment grade”,
“credit enhanced” securities that were enhanced by Lehman, who was
insolvent and in need of liquidity, itself. For anybody who is not
following me, how much is life insurance on yourself worth if it is
backed up by YOU paying out the proceeds after you die bankrupt? Lehman
was allowed to get away with such nonsense because it was allowed to
value its OWN securities. Think about this for a second. You are in big
financial trouble, you have only a $10 bill to your name, but your
favorite congressman (whom you have given $10 bills to in the past) has
given you the okay to erase that number 10 on the $bills and put
whatever number on it you feel is “reasonable”. So, when your creditors
come a callin’ , looking for $20 in collateral, what number would you
deem reasonable to put on that $10 bill.

Ladies and gentlemen, in the short paragraph above, we have just
encapsulated the majority of the mark to market argument. Let’s delve
farther into the ZH article:

 

By early August 2008, JPMorgan had learned that Lehman had pledged
self-priced CDOs as collateral over the course of the summer. By August
9, to meet JPMorgan’s margin requirements, Lehman had pledged $9.7
billion of collateral, $5.8 billion of which were CDOs priced
by Lehman
, mostly at face value. JPMorgan expressed
concern as to the quality of the assets that Lehman had pledged and,
consequently, Lehman offered to review its valuations. Although JPMorgan
remained concerned that the CDOs were not acceptable collateral, Lehman informed JPMorgan that
it had no other collateral to pledge.
The
fact that Lehman did not have other assets to pledge raised some
concerns at JPMorgan about Lehman’s liquidity

 

Hmmm!!! Three day old fish has a fresher scent, does it not? So where
was the SEC, the NY Fed, or anybody the hell else who’s supposed to
safeguard us against this malfeasance? Even bloggers picked up on this
months before it collapsed. The answer, dear readers: REGULATORY
CAPTURE!

Again, from ZH:

 

The SEC was not aware of any significant issues with Lehman’s liquidity
pool until September 12, 2008, when officials learned that a large
portion of Lehman’s liquidity pool had been allocated to its clearing
banks to induce them to continue providing essential clearing services.
In a September 12, 2008 e?mail, one SEC analyst
wrote: Key point: Lehman’s
liquidity pool is almost totally locked up with clearing banks to cover
intraday credit ($15bnjpm, $10bn with others like citi and bofa).
withThis is a really big
problem.

 

BoomBustBlog featured several warnings starting January of 2008!

One would think that after all of this, the problem would have been
rectified. To the contrary, it has been made worse. Congress has
pressured FASB to institutionalize and make acceptable the lies that
Lehman told its investors, counterparties and regulators. That’s right,
not only will no one get in trouble for this blatant lying, the practice
is now actually endorsed by the government – that is until somebody
blows up again. At that point there will be a bunch of finger pointing
and allegations and claims such as “But who could have seen this
coming”.

Do you not believe me, dear reader. Reference

About the Politically Malleable FASB, Paid for Politicians,
and Mark to Myth Accounting Rules
: the nonsense is unfolding and
collapsing right now, even as I type this sentence.

The next place to look??? Who knows? Maybe someone should take an An
Independent Look into JP Morgan
.. or maybe even an unbiased
gander at Wells Fargo (see

The Wells Fargo 4th Quarter Review is Available, and Its a
Doozy!)
. After all, If
a Bubble Bubble Bursts Off Balance Sheet, Will Anyone Be There to Hear
It?

More on Lehman Brothers Dies While Getting Away with Murder: Introducing Regulatory Capture:

 

Published in BoomBustBlog
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