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Reggie Middleton Sets CNBC on F.I.R.E.!!!
Last week I offered my susbscribers examples of the 2nd and 3rd sectors of the FIRE (Finance, Insurance & Real Estate) group that we see getting burned. I spent much of last year on the "F"portion of FIRE. Subscribers should reference the last 5 or so documents in the Commercial & Investment Banks section of the subscription content area. I then illustrated a Dutch real estate company facing the FIRE (again subscribers reference the latest submissions in Commercial Real Estate), and I will be offering US REIT entities at risk in the next day or two. Of particular interest was my explicit warning on the insurance industry two weeks ago, both publicly and to subscribers, which included a full forensic analysis of the company we thought would be make the best short candidate as the feces hits the fan blades. See You Can Rest Assured That The Insurance Industry Is In For Guaranteed Losses! and Our Next Forensic Analysis Subject Is In The Insurance Industry for more on my opinion on such. I even appeared on CNBC yesterday, apparently the only investor/analyst/pundit warning on the FIRE sector for 2012. I outlined my summary outlook for 2012 here: Reggie Middleton on CNBC StreetSigns Sees 2012 As Reluctant/Manipulated Continuation of Q1 2009… The actual CNBC appearance is available below...
From this point on, start this YouTube video and let it play in the background as you go through the balance of this post. It''ll help set the mood...
So, the day following the CNBC appearance warning of the risks to the FIRE sector, and specific risks to the insurance industry in the guise of combined ratios bumping heads with massive investment losses on sovereign and financial entity debt, guess what appears in the headlines of those very same media outlets??? Insurers’ 2011 Catastrophe Losses Hit Record:
Japan’s earthquake and U.S. storms helped make 2011 the costliest year on record for insurance companies in terms of natural-disaster losses, according to Munich Re (ARN).
Several “devastating” earthquakes and a large number of weather-related catastrophes cost insurers $105 billion, more than double the natural-disaster figure for 2010 and exceeding the 2005 record of $101 billion, the world’s biggest reinsurer said in an e-mailed statement today. Competitor Swiss Re earlier estimated that the industry’s claims from natural catastrophes reached $103 billion.
Global economic losses jumped to $380 billion last year, surpassing the previous record of $220 billion in 2005, with the quakes in New Zealand in February and Japan in March accounting for almost two-thirds of the losses, Munich Re said.
“We had to contend with events with return periods of once every 1,000 years or even higher at the locations concerned,” Torsten Jeworrek, Munich Re’s board member responsible for global reinsurance, said in the statement. “We are prepared for such extreme situations.”
In Beware Even Those "Safe" Insurer's Portfolios I illustrated to my susbscribers the risks that insurance investors face. Munich Re said 2011 was the costliest year on record, but they failed to state how difficult it would be to handle said record losses with additional and potentially greater losses on bond and FI porfolios. Munich Re's net exposure to sovereign debt of PIIGS as % of tangible equity at the end of 2009 = 41.2%. Damn! Many compmanies are worse than that (and I'll delve into those a little later). Now, by revisiting the insurance primer that I offered in You Can Rest Assured That The Insurance Industry Is In For Guaranteed Losses! you can see that combined ratios may very well break 100 while investment losses spike. Somebody may not get their claims funded, eh?
Professional Subscribers, reference the addendum to the 
Sovereign Debt Exposure of European Insurers and Reinsurers (439.61 kB 2010-05-19 01:56:52) whcih can be found online here: Insurer and Reinsurer Sovereign Debt Exposure Worksheets - Professional
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Hey Reggie, when is that run on a french bank happening? We've been waiting for a while now...
BofA is Santorum
Thanks.
Will RM suckumb (sic) to the ubiquitously deadly Roubini Retrograde? Wherein as he starts getting MSM gigs for big $$$, his penis suddenly grows 3 times its original size, he throws parties 7/24, he's seen on TMZ with groupie babes pulling off his shirt and tie while camped outside his penthouse crib, and his other head just says whatever the hell they tell it to say.
How long can he resist the suction?
Ohio Players bitchez!!!
we got rid of mark to market...problem solved.
And here I wondered why AFL and PRU looked like such "bargains" as div payers--thanks Reg!
BTW, this post since it links to a song would be illegal under #SOPA.
And probably zerohedge.com, too.
And you think I'm kidding.
LOL! I thought Reggie literally set CNBC and the MSM on fire.
I do like his stuff.
Reggie for Treasury Sec.!!!
Reggie, next time you stick a dagger in the heart of Bank of Criminals, please twist. Smooth interview.
You can tell Reggie was nervous a bit! But although his prescence is MSM green, his knowledge is, as a veteran, second to none.
He'll only get better, and by the end, I think he'll be one of the ones in the history books talk about "the day when the TBTFs finally failed".
Reggie - Good job on TV. You gave great insights into fundamentals problems with F.I.R.E.
You are a smooth operator.
http://www.youtube.com/watch?v=4TYv2PhG89A
I prefer the longer version
http://www.youtube.com/watch?v=tB8EUs5NFLM
Tyler is launching a plethora of careers on ZH...can you imagine Tyler one day sitting next to Steve Liesman LOL..t'would be akin to watching Berbatov run rings around a defender from the 2nd division in the Cypriot league!
Dude, you mean Messi run rings around a defender. Berbatov's too lazy to run...
Berbatov is one of Tylers favorite players, join the dots my friend!
Congratulations Reggie. That is big being on CNBC. Maybe they will invite you to be a regular contributor.
That is how Cramer got on TV.
No kidding, good job getting on CNBC. You where saying stuff that I never heard from the CNBC in regard to the economy and the big banks. I think they where afraid to over talk you or attack you because you done your homework and know what your talking about.
The insurance racketeers are not a group for which I will shed a single tear when they blow themselves up. It's another government endorsed and protected cartel,,,and like all the other cartels they are biologically opposed to playing a straight game with policy holders... fuck em.
congrats to the new CNBC regular! LOL
Reggie.. right on right on !
Great work man! hold that squid over the Fire! kosher calamari
Reggie with the money honeys. Have you pumped their dumps yet??
Nice job Reggie. Don't forget to tell your subscribers to take profits off the table. We are devaluing the dollar (all fiat) by May IMO, and anybody in paper is taking a haircut.
devaluing the Dollar against what?
"an array of the quantities of alternative goods and services that can be purchased for a dollar"
http://mises.org/daily/5188/The-Austrian-Theory-of-Money
Nice appearance on the pump channel, Reggie! Contrary to the claims of the haters, btw, I thought your presentation was pretty damn good.
Go get em' Reggie. Love it when you put those talking head, know nothings to shame.
"..talking head, know nothings.."
'CNBC airheads' for short/sure
feuer frei. beatch
APPLE IS CRASHING!!!!!!!!!!! And I correctly forecast it!!!!!!!!!!! - Reggie Middleton
(Well, everything except sales, profits, and share price)
i phones on half price sale here in norway, can you spell margin compression?
Partially agree....but they don't give you the time to answer in depth....was mainly watching Mandy though, anything to keep my mind off the ass whipping I'm taking while waiting for Reggie's fire to start>>>>
Set Cnbc on FIRE...??? Haha..
I watched the interview. Reggie, you couldn't even get a complete sentence out of your mouth without completely stumbling/bumbling over it..
You looked like a pimp being questioned by the cops..
I will say this about you. You are, without a doubt, the most shameless self-pumper there ever has been..
Bet you could hardly wait for that horrendous interview to finish so you could run home and post this latest self-absorbed praise for yourself...
stick to writing, Actually, give that up too...
golfrattt don't take life so seriously. Reggie is just having fun with it. Good for him, he's presents in a new and lively way.
Shameless self-pumper... classic. and he pumps himself all over me with each article. His self-worship is really quite pathetic. He is intelligent, but is quite emotionally fragile, or he wouldn't have the need to self-stroke each and every piece.
"My Precious..., My PRECIIOUUSSSSSS!!!! Kinda creepy, actually.
Reggie did great. A little nervous but he handled it very well. I am sure that being on National TV can be a little intimidating.
i've yet to read one of your contribution articles on ZH...?
Wow, you seem like a real smart guy...
i'm tempted to subscribe, since i have been here reggie has been spot on and his research is thorough yet readable
I dont know why they were playing the stocks at the background as Reggie speaks! Whoremedia
F.I.R.E.!
Bob Pie-in the sky-sani on CNBC today ebullient about low equity valuations and what a great deal stocks are; yet flumoxed by commodities going up along with the dollar while European banks are down.
"It's great to see the disconnect but I'm not sure what it means."
Oy vey.
Great job yesterday Reggie; you may have brought a smidgen of disbelief in eternal Unicorns and Rainbows to CNBC.
Compared to all the go-go artists on CNBC , Reggie as well as Kyle Bass are mavericks who supports their thinking with facts and figures. Unfortunatly TV interview clips do not permit in depth disscusion---and that is why written word is more informative.
It's amazing how the voices of the interviewers sound like they bounced around in an empty skull cavity before escaping through the oral passage.
I beleive the escape is through a lower passage, which coincides with where their heads are.
LOL! Plus one to both of you!
Reggie talks fundamentals while the CNBC crowds talks out of their fundaments.
Burn baby burn.....
blabla bla. Reggie at his best ..like a pundit.
nothing that is not known. That why insurance premiun are up.
next
Actually, I'll give Reg a few "brownie points" ('scuse the expression) on this one. Get a little check from Genworth each month. Each month, it keeps coming later and the post-dates keep getting longer. Last month I took it to a Credit Union where I have an acct...they looked at it like a dead fish and wouldn't even take it for deposit. Apparently, the CU is still bogged down in archaic concepts like "solvency". Finally got another local bank (drwning in red ink) to take the thing. Ruh-roh.....