Reggie Middleton's blog

This is an extensive post designed for those who want to truly comprehend what I perceive to be both the root causes and the practical solution to the Irish sovereign debt problems and the threat of Pan-European possibly global financial and economic contagion.

The fallout from Ambac's bankruptcy is not necessarily what many may think. The robo-signing plaintiffs and associated lawsuits will now get to see what happens when the spurned money of the big boys joins the fray!

As if astute observers, the objective (and/or BoomBustBloggers) couldn't see this coming a mile away. The next prediction cum manifest destiny (Euro-toxic asset edition), many other sovereign nations - in and out of the EU will be pulled down by their extend and pretend treatment of bad bank assets.

On Apple and Heebner cleaning house, whether he did it for liquidity reasons or not, the writing is on the Wall for Apple and the days of no competition high margin iPhone sales are over. Android is in town and has already taken over the lead. Add to that the fact that the equity markets are rather iffy to begin with, people are still heavily indebted and Apple caters to those who pay premiums, and the Apple sale was a no-brainer. Of course, I explained this in detail a month ago, but I guess it took time for the filings to come to light.

We may be forced to start taking real fundamentals into consideration, battling the Fed and QE. Shadow inventory will push heavily in the favor of fundamentals - or to put it more plainly, beware the return of reality!

Banks, insurers and ratings agencies conspired to move junk assets that were guaranteed to implode - and implode they have. They were (Wall)Street hustling, 3 Card Monte style, but what most are dismissing is that the ponzi/hustle collapse has yet to truly happen!

An independent analysis of the grand slam Q3 earnings performance that was anticipated in full detail by BoomBustBlog, yet (and amazingly enough, as I attempt to wipe the sarcastic smirk off of my face) took the Street by surprise. Let the destructive creation commence!!!

There is a strong financial incentive for at least some (ex. Citi) mortgage servicers to foreclose in lieu of working the mortgage out. That incentive comes in the form of getting up to a full 1/4 of the foreclosure proceeds - quite possibly causing HAMP and other loan mod programs to fail. After all, the lending business ain't so hot these days, but risk free foreclosure proceeds... You can't beat that!

A more in depth look at Morgan Stanley’s returns on equity reveal an even uglier snapshot of performance than the unimpressive, cursory annual overview illustrated in our quarterly analysis released yesterday. Bubblicious credit, QE x 2, and regulators that look the other way from rotting assets still result in piss poor economic performance. What do you think will happen when rates resume their upward move?

Morgan Stanley is also extending its abysmal track record in CRE with the 97% in Revel. The bank took an effective loss for the common shareholders, even when backing out the DVA effect (which is a non-cash charge) as long as you normalize one time items. There is plenty more pain in RE to come, and Morgan's track record is horrendous at the same time expenses are rising with talent fleeing.

BoomBsutBlog and the independent analysts vs Wall Street: I(we) say insolvent, or damn close, they say buy. Hmmm!!! Judging by affiliation and track record, who do you think is right?

It is peculiar that the firms that don't underwrite securities or sell information services are the most bearish on the banks, isn't it? Even the constant "just shut up and buy 'em" banks missed the ball on Google!

Ambac was the walking dead 3 years ago, but nobody wanted to admit it. Well, as they skirt with bankruptcy today, the same story applies to the big US banks, and again nobody wants to admit it. What are the chances you will be reading a bankruptcy blog post like this one about the big banks in a year or two?

It looks like we've lost nearly trillion dollars in housing value and credit since the recession ended. With recoveries like this, who needs a depression?!

A note to those banks that have blocked the access to popular blogs. Wall Street has been BLINDED by the “revenue at all costs” mentality! These deals, products, services and structures are a lot more than potential bonus checks and wide girth swinging dick bragging rights! They are life lines for the mentally disabled, widows retirement funds, potentially life saving programs for AIDS victims, domestic abuse victims, orphans, etc. Hey, I’m all for making money (a lot of money even), and I know that in order for you to make money someone else has to lose it, but there must be boundaries drawn. Attempting to block employees access to my blog (in vain) does little to improve things...

Reggie Middleton with the rather animated Max Keiser (the guy actually had a Lloyd Blankfein action figure for waterboarding) on the Keiser Report Discussing Banks, Oligarchs, Fraudclosure & Derivative Exposure. Also included - how Britain is avoiding confrontation with suicide bankers who took down the financial system "for kicks". If you guys think I'm offensive, you ain't seen nothing yet. Regular ZHers will probably enjoy the whole thing. Those in the banking industry should just fast forward to my portion so you can just harshly disagree vs being thoroughly offended :-)