tag:blogger.com,1999:blog-21846828.post857706245529620156..comments2024-01-14T16:01:08.962-08:00Comments on The Rational Realist: Rational Realisthttp://www.blogger.com/profile/08886526093283532105noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-21846828.post-87209516994169467122011-06-03T10:48:45.304-07:002011-06-03T10:48:45.304-07:00Anonymous, who are you accusing? I write this blo...Anonymous, who are you accusing? I write this blog to point out the good and the bad. It has never been an indictment of an industry or individuals. If you read it closely, you'll it just the opposite. I comment on public filings. It is strange that I have had so many comments on this REIT that has been around for sometime and did not raise much money in nearly four years. Every deal is not bad, far from it. I made no comments whatsoever on Cornerstone's CEO, the quality of its product or the financial services industry.Rational Realisthttps://www.blogger.com/profile/08886526093283532105noreply@blogger.comtag:blogger.com,1999:blog-21846828.post-64116346151572292862011-06-03T10:35:05.310-07:002011-06-03T10:35:05.310-07:00You are making sweeping generalizations and accusa...You are making sweeping generalizations and accusations in a very condescending manner about Cornerstone, it's Products, it's CEO and The Financial Industry as a whole. Your personal experiences hold weight for you, but not for the whole of the B/D Community or the Financial Industry. <br /><br />People, no matter what religious, racial, or sexual orientation group they identify with are responsible for their own actions. <br /><br />It is inaccurate to imply a one-size fits all frame of reference on any B/D or Financial Institution for a crime which the victims have yet, if ever, to identified. You add insult to injury by implying that they as members of a B/D and/or selling group are part of a group of people who don't care and turn the other cheek without even a modicum of Due Diligence. <br /> <br />Every Financial Advisor, B/D and/or Product Sponsor is not an abuser or a thief. Every Private Placement is not a SCAM!! Every Investor does not sit by idly ingesting investment opportunities that are "spoon-fed" them by Advisors without researching facts and reading and learning for themselves. <br /><br />It's no fun for anyone to be lumped together as a whole to be criticized for something only one or a few in any arena, Financial or otherwise, may have done.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-21846828.post-47294593361061200812011-05-16T22:44:27.859-07:002011-05-16T22:44:27.859-07:00a heavy fine for misrepresentation from the same c...a heavy fine for misrepresentation from the same company doesn't sound unrelated to me!GWnoreply@blogger.comtag:blogger.com,1999:blog-21846828.post-88021994710513140822011-05-09T11:57:41.469-07:002011-05-09T11:57:41.469-07:00Why do people speculate about worst-case scenarios...Why do people speculate about worst-case scenarios and also throw in unrelated garbage to make the audience 'shudder'?! What possible gain could there be in any posts of that nature? It serves no purpose and only stirs the pot - why not find something where you can actually make a difference in a positive fashion?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-21846828.post-59868407665469823182011-05-04T18:13:13.936-07:002011-05-04T18:13:13.936-07:00This statement alone - "they sold private pla...This statement alone - "they sold private placement units that literally paid the B/D unit's overhead. In exchange for this unsurmountable and ridiculous risk, investors were promised shares of fee-sharing once the B/D raised certain amounts of offering proceeds!" - should have been enough to stop any B/D from approving these transactions. No expected return is worth the risk of these affiliated crap shoots.Rational Realisthttps://www.blogger.com/profile/08886526093283532105noreply@blogger.comtag:blogger.com,1999:blog-21846828.post-91939844132568204142011-05-04T16:15:52.836-07:002011-05-04T16:15:52.836-07:00Shudder you should! As I understand it, they sold...Shudder you should! As I understand it, they sold private placement units that literally paid the B/D unit's overhead. In exchange for this unsurmountable and ridiculous risk, investors were promised shares of fee-sharing once the B/D raised certain amounts of offering proceeds! The problem is, their targets were consistently in the BILLIONS, well outside of Cornerstone's reach. <br /><br />The investors' proceeds have now been entirely spent on salary and electricity bills while Cornerstone was kept on life support even at abnormally low funraising levels.<br /><br />The parent company remained debt-free and the private placement investors took on 100% of the risks related to starting a non-traded REIT distribution company. <br /><br />But I'm sure all of them read those prospectuses carefully... <br />On second thought, maybe not: <br /><br />http://www.finra.org/Newsroom/NewsReleases/2009/P120612Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-21846828.post-65789991318537714182011-05-04T09:00:48.738-07:002011-05-04T09:00:48.738-07:00Sounds like a true Profile in Courage. Fortunatel...Sounds like a true Profile in Courage. Fortunately, I don't know much about the working capital funds. The whole concept of working capital funds makes me shudder.Rational Realisthttps://www.blogger.com/profile/08886526093283532105noreply@blogger.comtag:blogger.com,1999:blog-21846828.post-11022538219637574972011-05-03T20:17:41.891-07:002011-05-03T20:17:41.891-07:00Cornerstone's B/D arm, Pacific Cornerstone Cap...Cornerstone's B/D arm, Pacific Cornerstone Capital, let all the wholesalers and marketing teams go that same day. <br /><br />Word on the street is the CEO was on the grim internal conference call but didn't even utter any words to his loyal followers who had played the cards they were dealt for years.<br /><br />Cornerstone Real Estate Funds, the firm's multiple working capital private placements that will never deliver a penny back to investors, and the dissolution Pacific Cornerstone Capital will be a classic case study for investors.Anonymousnoreply@blogger.com