Safe Haven | So What Will Burst This Latest Bubble? It May Be Simpler Than You Think...

"No warning can save a people determined
to grow suddenly rich." - Lord Overstone

HOME

ARCHIVES

FORUMS

SITE MAP

ABOUT US

Home -> Archives -> Reggie Middleton -> So What Will Burst This Latest Bubble? It May Be Simpler Than You Think...

Printer Friendly

eMail Article

November 17, 2009

So What Will Burst This Latest Bubble? It May Be Simpler Than You Think...
by Reggie Middleton

Maybe, it just may be the total collapse in credibility and trust in the US Federal Reserve and Treasury. I mean, come on. Have you heard the bullsh1t that they spouted this morning? Quick Bloomberg scan:

Yellen Says Unclear If Use of Rates Can Stem Leverage (Update1) ...

... Fed Chairman Ben S. Bernanke said yesterday it's "not obvious" there's a bubble in the US and Yellen said today the US stock market is not overvalued....
- 2009-11-17

Kohn Says US Asset Prices Don't Seem 'Out of Line' (Update1) ...

... low interest rates don't appear to be fueling another asset-price bubble in US ... Kohn's remarks echoed comments made by Fed Chairman Ben S. Bernanke in an ...
- 2009-11-17

Bernanke Says 'Not Obvious' Asset Prices Misaligned (Update2) ...

... regulatory methods to restrain undue risk-taking and to make sure the system is resilient in case an asset-price bubble bursts in the future," Bernanke said.

I would love to see Bernanke's personal investment accounts, just to note how many long bonds and equities he is piling into over the last few months. Yeah, price misalignent is "not obvious", equity market is not over priced, there is no bubble. They are right, the market is not over priced, it is priced for idiots, fools and the follow me crowd. I remember when Bank of America (the company that just bought the two largest, and the two sickest financial entities around at that time - Countrywide and Merrill Lynch, with no government subsidy on Countrywide) announced the price of a follow on equity offering at about $12 and its share price shot up to around $14 or so (going from memory, so don't hold me to the penny). You know things are bad when the company's own CEO says he doesn't know why the hell his stock is shooting up. For those who are not financial types, all anybody who wanted to buy $14 BAC stock had to do was to purchase it $12 directly from the underwriter. Whoever it was that was buying the stock was "literally" throwing the money away!

Reggie Middleton
Reggie Middleton, LLC
Perpetual Interests, LLCTM
http://boombustblog.com/

Who am I?

Well, I fancy myself the personification of the free thinking maverick, the ultimate non-conformist as it applies to investment and analysis. I am definitively outside the box - not your typical or stereotypical Wall Street investor. I work out of my home, not a Manhattan office. I build my own technology and perform my own research - in lieu of buying it or following the crowd. I create and follow my own macro strategies and am by definition, a contrarian to the nth degree.

Since I use my research as a tool for my own investing to actually put food on my table, I can stand behind it as doing what it is supposed too - educate, illustrate and elucidate. I do not sell advice, I am not a reporter hence do not sell stories, and I do not sell research. I am an entrepreneur who exists just outside of mainstream corporate America and Wall Street. This allows me freedom to do things that many can not. For instance, I pride myself on developing some of the highest quality research available, regardless of price. No conflicts of interest, no corporate politics, no special favors. Just the hard truth as I have found it - and believe me, my team and I do find it! I welcome any and all to peruse my blog, use my custom hacked collaborative social tools, read the articles, download the files, and make a critical comparison of the opinion referencing the situation at hand and the time stamp on the blog post to the reality both at the time of the post and the present. Hopefully, you will be as impressed with the Boom Bust as I am and our constituency.

I pay for significant information and data, and am well aware of the value of quality research. I find most currently available research lacking, in both quality and quantity. The reason why I had to create my own research staff was due to my dissatisfaction with what was currently available - to both individuals and institutions.

So here I am, creating my own research for my own investment activity. What really sets my actions apart is that I offer much of what I produce to the public without charge - free to distribute and redistribute, as long as it is left unaltered and full attribution is given to the author and owner. Why would I do such a thing when others easily charge 5 and 6 digits annually for what some may consider a lesser product? It is akin to open source analysis! My ideas and implementations are actually improved and fine tuned when bounced off of the collective intellect of the many, in lieu of that of the few - no matter how smart those few may believe themselves to be.

Very recently, I have started charging for the forensics portion of my work, which has freed up the resources to develop the site to deliver even more research for free, particularly on the global macro and opinion front. This move has allowed me to serve an more diverse constituency, which now includes the institutional consumer (ie., investment turned consumer banks, hedge funds, pensions, etc,) as well as the newbie individual investor who is just getting started - basically the two polar opposites of the investing spectrum. I am proud to announce major banks as paying clients, and brand new investors who take my book recommendations and opinions on true wealth and success to heart.

So, this is how I use my background and knowledge in new media, distributed computing, risk management, insurance, financial engineering, real estate, corporate valuation and financial analysis to pursue, analyze and capitalize on global macroeconomic opportunities. I have included a more in depth bio at the bottom of the page for those who really, really need to know more about me.

Visit his blog Boom Bust Blog.