I know some HP'ers think the Rich Dad / Poor Dad dude is just a shill, but I've got to admit, I agree with the guy when it comes to the state of our financial affairs - government and society.
I read one of his books about how the social security and medicare/medicaid time bomb was going to explode. He also talked about the move from pensions to 401ks and what that meant for society. His points were spot-on in my book.
So here's his latest. Again, I agree with him. Get ready.
Most Americans live in la-la land.
They're clueless about what's going on in the world of money, and still think we're the richest country in the world. In reality, we're the biggest debtor nation there is.
Most Americans also still think our government will protect them. The world is changing at an alarming rate, yet most people here waddle stubbornly through the crosswalk, so to speak, still believing that this country has the right of way and that our political institutions are still sound.
What about Medicare, which is running in the red? And what about Social Security, which will soon be running in the red? In case you don't know how in trouble both programs are, as of 2004, Medicare's long-term fiscal gap is over $60 trillion, while Social Security reportedly has a $10 trillion shortfall.
Yet in spite of these financial challenges, millions of Americans continue to waddle through the crosswalk of life, expecting our government to take care of them instead of building wealth. They're living in la-la land.
In the next five years, the United States and the world will go through some of the most financially disturbing times in the history of the world. Once again, the rich will become very, very, rich, and the unsuspecting will be left like the passengers on the S.S. Titanic, heading straight for an economic iceberg.
September 20, 2006
Kiyosaki: "In the next five years, the US and the world will go through some of the most financially disturbing times in the history of the world"
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I think he's dead on!
Diggin' in the bottom of the barrel for material keith?
Masco cuts 2006 outlook on falling housing starts
24 minutes ago
NEW YORK (Reuters) - Building products maker Masco Corp. (NYSE:MAS - news) on Wednesday warned that 2006 earnings would be lower than expected, blaming falling U.S. housing starts.
The maker of Delta faucets and Behr paint said it expects 2006 earnings of $2.25 to $2.30 a share excluding one-time items, instead of the lower end of the prior forecast range of $2.40 to $2.50 a share.
Analysts were expecting $2.45 a share, according to Reuters Estimates.
The Taylor, Michigan-based company, which previously cut its full-year outlook in June, said it now expects third-quarter sales to be about flat versus last year, while fourth-quarter sales will slip by low- to mid-single digits.
Chief Executive Richard Manoogian, in a statement, cited "a softening of incoming orders for building products and services in recent weeks, along with a forecasted deeper-than-expected decline in year-over-year single family housing starts for the last four months of 2006, currently projected to approximate 20 percent."
Masco, which has been shedding some businesses to improve performance, revised its outlook a day after the U.S. Commerce Department said U.S. housing starts fell 6.0 percent in August to an annual pace of 1.665 million units, compared to a downwardly revised 1.772 million in July.
Masco's shares, which closed on Tuesday at $27.34 on the New York Stock Exchange, have fallen about 12 percent this year.
Lawsuits accuse Dwek of forgery
$3.8 MILLION IN LOANS LISTED
Posted by the Asbury Park Press on 09/20/06
BY JAMES W. PRADO ROBERTS
STAFF WRITER
Real estate investor Solomon Dwek is facing additional accusations that he forged the signatures of close associates on millions of dollars in loans.
The widow of Jack Adjmi, Dwek's investment mentor, charges in a new lawsuit that Dwek forged Adjmi's signature on a document that purports to guarantee payment on two mortgages worth $2,152,849 from Sovereign Bank.
Sovereign says that in 1999, Adjmi guaranteed any loans from the bank to the Deal Yeshiva — a Jewish educational organization then run by Dwek along with his parents — even after his death. Adjmi died in 2003; the two loans were made in 1998 and 2005.
And Dwek's aunt and uncle, Joseph and Terry Dwek, charge in new court papers that in 2001, Dwek forged their names on a $1.5 million mortgage on their Ocean Township summer home. That lawsuit alleges Solomon Dwek forged his uncle's name to a $130,000 loan guarantee for the Deal Yeshiva in 2000. Both of those loans are held by Sun National Bank of Vineland.
The lawsuits against Solomon Dwek and the banks, made public Monday, are the latest claims that Dwek forged signatures in order to obtain millions of dollars from lenders.
But the suits add to a series of extraordinary fraud claims against Dwek, 33, of Ocean Township, who has a land empire estimated to be worth $420 million.
In August, the Asbury Park Press reported that a forensic document examiner found Dwek may have signed the signatures of others on $9 million in loans.
In her first lawsuit, filed in August, Rachel Adjmi, Jack Adjmi's widow, claimed that Dwek forged the couple's name in 2000 to a $1.5 million loan secured by the Adjmis' summer home in Deal.
In May, after PNC Bank accused Dwek of bouncing a $25.2 million check at a drive-through window, a civil court judge froze Dwek's assets. The FBI then charged Dwek with criminal bank fraud. He is free on $10 million bond.
More than 80 banks, investors and contractors claim Dwek owes them more than $338 million.
Superior Court Judge Alexander D. Lehrer, Freehold, is in the process of selling off hundreds of Dwek's commercial and residential properties to pay his creditors.
Joseph Dwek has previously said in court papers that he gave Solomon Dwek $60.2 million to invest in properties since 2003, but didn't discover until April that none of the properties were in his name.
Solomon Dwek's lawyer, Robert A. Weir Jr. of Red Bank, could not be reached for comment, nor could a representative of Sun National Bank. Deborah Pulver, a spokeswoman for Sovereign Bank of Wyomissing, Pa., declined to comment, as did a lawyer for the Deal Yeshiva, William F. Maderer of Newark.
Rachel Adjmi and Joseph and Terry Dwek want a court to declare that they don't owe any debts based on the documents they say were forged.
Solomon Dwek resigned as vice president of the Deal Yeshiva following his arrest by the FBI.
The nonprofit organization operates schools in West Long Branch and Ocean Township and has an enrollment of more than 300 students.
Visit our Web site, www.app.com, and look under Special Reports for Rise and Fall: Inside Solomon Dwek's Empire, for stories, videos, an interactive map and chart, past articles, links and more.
http://www.app.com/apps/pbcs.dll/article?AID=/20060920/NEWS/609200513
Yep, Kiyosaki has it right.
Get ready for one of those rare, once-in-a-generation shifts in global power--this time from West to East.
Indeed, we are witnessing, in real-time, the decline of the U.S. as the global economic and military hegemon and the rise of China (and to a lesser extent the re-emergence of Russia) as the replacement power(s).
Oh, and by the way, these little power shifts NEVER go smoothly. Just look at the LAST time we had such a power shift from British hegemony.
The result?
World Wars I and II.
Also, to make matters even MORE complex and frightening we have the following global economic scheme:
1. Fiat currency
2. Fractional reserve lending
3. Central banking
4. Massive "securitization" (dicing and slicing and selling of debt).
5. Hundreds of TRILLIONS of dollars of derivatives positions designed to obsfucate, create phony gains and losses, attempt to shift risk to greater fools and other shenanigans.
So, Kiyosaki will be proven correct even if he isn't completely aware of why.
Now, what can one do to survive and even possibly prosper during the upcoming upheavel?
Frankly, not much. We will all be screwed to a greater or lesser extent.
However, a few recommended items to undertake:
1. Get and stay the heck out of debt.
2. Make sure you have some cash inside and outside of the system.
3. If precious metals make you feel comfy, then go for it. Just be prepared to have them taken away when TSHTF.
4. Practice temperence and sobriety in your business, financial and personal lives.
5. Be prepared to console your fallen bretheren.
Now for the upbeat part:
The next five years or so WON'T be boring so tighten up your chinstrap and enjoy the ride...
Once again, the rich will become very, very, rich, and the unsuspecting will be left like the passengers on the S.S. Titanic, heading straight for an economic iceberg.
This system is designed for Masters and Slaves.
How many Masters can this system have ? 1%
How many slaves ? 99%
“Clueless in La La Land” Another great post, this guy is saying some scary things. He’s got some money in commodities too. I used to think he was just a stock pusher, but now I’d like to hear more of his views on preparing for the economic turbulence that lies ahead. I May just have to read the book. Then again I'm very suspect about a book that Trump co-authored.
Good Lord Keith. Did you even read the article? Don't you see what he is doing?
He starts off with talking about his holds in gold and silver, and then compares a commodities trader making 70k a day (well, that day -- he leads us to believe that this is normal, and so he should make ~20 mil a year) to the ho-hum guy working the floor.
At the end he is pumping his new unpublished book with the Donald on what you need to do to make money to prepare for the oncoming problems. Hmmm ... could that be in the commodities he was pitching at the beginning?
It is obvious that he is trying to scare up investment in commodities. He wants the stock market and real estate market assest bubbles to be followed by one in the commodities. And he wants to be on the ground floor of this one.
Kiyosaki is a bad, bad, bad man.
He's just trying to sell books.
Keith,
If there is a economic melt down, I advise you to stay abroad. I will most certainly form a band of armed bandits to steal from the wealthy and eliminate them. It won't be safe for any of the wealthy.
I flipped through his book and it sucked. Kind of money for morons...
Read the "Millonare next Door", a much better book.
Didn't know he was such as lefty, and a non-critical thinker. Oh-my-god, we are the biggest debtor nation! But we are also the biggest GDP, and as a percentage, we are better off than Japan and other "good" nations in this sense.
Hmm, lets see, I buy a house for $500,000 with a 30 year fixed mortgage, I can now run around an tell everyone I really own $1.5 million since that is the total payments over 30 years... Yeah, great "accounting".
It's amazing what gets published today...
Don't look now, but gold is on the way down....
Don't look now, but commodities are on the way down...
I can't believe you are quoting Kiyosaki on this blog of all places. WTF??
"Once again, the rich will become very, very, rich, and the unsuspecting will be left like the passengers on the S.S. Titanic, heading straight for an economic iceberg."
Mostly, he has to say this stuff because, quite frankly, thats how Kiyosaki makes his money-- pissing on the workers of this world.
My grandmother goes to therapy, and medicare pays $150 twice a week for a grand total of around $15,000 a year.
It isn't necessarily true that medicare is broken but it is true that $150 an hour for a little weight lifting and a back massage is way beyond parity with what Wal-Mart workers get-- $6 an hour.
Kiyosaki's books talk about how to take advantage of people and I believe that they know they're being taken advantage of but the rich won't let them fight back.
Take NWA (Northwest Airlines) for example. They told their employees to dumpster dive to make ends meet and they got a judge to tell their employees that "striking for a fair wage" is too disruptive.
I'm not saying, however, that union represented labor knows when to stop because they don't and they're seeing the blowback from that.
On the other hand, there might be blowback at hand too for "the work" of people like Kiyosaki. When 99% of the population realizes they're the majority, watch out!
That's why our electric voting machines come fully rigged!
Unfortunately, that means "political confrontations don't take place at the ballot box!"
Presidents, like Bush and Caldaron, who won by fraud, cannot say they have the "mandate of the people." Neither can the rich, if they steal, or the poor, if they're truly lazy.
Can't believe Kiyosaki finally got something right. The national debt adds leverage to our economy just like a mortgage adds leverage to an apartment building. But now the cash flow is drying up...
For Kiyosaki's lies and blunders, read www.johntreed.com/Kiyosaki.html
THE RICH DO NOT MAKE THE RULES...
THE ANGRY RESURGENT PROLETARIAT MAKES THE RULES!!!
KIYOSAKI HAS NOT STUDIED HIS HISTORY VERY CAREFULLY.
REMEMBER THE FRENCH AND RUSSIAN REVOLUTIONS? THE BRITISH LABOR REVOLTS? FDR'S NEW DEAL REFORMS IN ORDER TO PREVENT AMERICAN LABOR UNREST ALONG WITH A GROWING US COMMUNIST PARTY IN THE 1930S?
THE RICH PLANT THE SEEDS OF THEIR OWN DESTRUCTION!!!
CONTRARY TO WHAT THE MAINSTREAM MEDIA HAS BEEN LAUDING, THERE IS A GROWING RESURGENT LEFTIST BACKLASH, PRIMARILY IN SOUTH AMERICA (CHAVEZ-VENEZUELA, LULA-BRAZIL, MORALES-BOLIVIA,CHILE,ARGENTINA,AND OBRADOR'S REFUSAL TO RECOGNIZE CALDERON'S "VICTORY" IN MEXICO)
WHEN MIDDLE CLASS AMERICANS FINALLY 'WAKE UP' TO THE FACT THAT THEIR FUTURE IS BEING FORCLOSED AND OUTSOURCED, THE RICH BEWARE!!!
GATED COMMUNITIES AND PRIVATE MILITARY/POLICE CONTRACTORS WILL NOT SAVE THEM!!!
At first I was freaked out by the post, Then I calmed down after reading the comments. Phewww!
Thank god for blogs.
Don't look now, but gold is on the way down....
great cheaper for me to buy..i love it..and wait till next year when it is $2000 oz
forget the messenger - focus on the message
I don't like or care for the messenger myself, but I do appreciate the message
Open your minds HP'ers. People who throw ideas away without consideration simply because they've prejudged the source will miss out
Kinda like why I love watching fox news and listening to rush
Kiyosaki merely jumps on the bandwagon when he get's the chance.
The he was spruiking real-estate, now commodities...
F*** him and the horse he rode in on....
He is a fake.
I agree and Kiyosaki on the U.S. debt. However, there's two side to this. How do you know that his comment (now) is a prelude to his new book with Donald Trump, taking advantage of the situation in order to promote their agenda? Remember he himself said it; "it's like selling chicken to Col. Sanders."
I'm skeptical about his illustration between his friend Steven who made $70k in one day versus the other who does it in a year. It is one of those "get rich quick" mentality that in fact led to the housing bubble. GREED is still present here.
Let's play master and servant.
Tom,
The book Keith is likely talking about is "Rich Dad's Prophecy". The basic idea is that the government *forces* boomers (the largest segment) to take distributions. This forces them to sell shares. If a large portion of the population is selling (or even worse, some kind of panic breaks out), the stock market will eventually reflect this fact.
And no, he is not a stock pusher. Far from it. He is a big real estate booster, but always emphasizes cash flow real estate investing over price appreciation. Given those criteria, there have been fewer and fewer opportunities over recent years. Especially as everybody and their dog starting trying their hand at real estate.
The books aren't very "well-written" per se, but I have learned something from reading each of the ones that I have read.
Btw, thanks for the blog, Keith. This is very interesting.
Gold is going down. Don't buy (so I can buy)
the time to buy gold is when it is viewed negatively.
Some Bolshevik named paintblot said "The era of corporate rule of America is over as soon as any serious hardships grip the American people."
To be replaced by rule of the proletariate? Collective justice, collective sharing, collective thought? I heard some folks tried that approach on several scales and in many different places. It didn't turn out well for any of them.
But hope springs eternal, right blot? Hell, with a really smart guy like Al Franken in charge, it could work this time -- LOL!
In response to anonymous above. Ilove your way of thinking. I buy textile in China. Chinese all think we are jackasses to be over-charged, and to stupid to know the difference.
We need more people like you,screwing them and bringing the profits back to America.
Finally I always get head and leave a little present for some Chinese guy to kiss out of her mouth before I leave. It is the American thing to do.
Buy gold and learn Farsi. No biggie.
In response to the POPE. Remember his predecessor crushed Russia. Maybe he has the same thing in mind for the extremists.
"Kinda like why I love watching fox news and listening to rush"
Yeah, Rush kicks ass! I am not sure what I like better though, Neil Peart's unmatched drumming and lyrics, Geddy Lee's bass and screaching vocals, or Alex Lifeson's guitar virtuosity. Hemispheres is by far the best album.
Oh, Limbaugh.
Agreed - debt is bad.
A genius? Don't think so.
Social security is socialism = BAD
IT IS SCAMMING THE YOUNG! The sooner we get rid of it the better.
You won't hear the elderly ass kissing Repubs / Dems saying that!
He makes some decent points, but he is a shill who sells books, and gets rich selling books. That's it.
He is uninformed in many ways.
In his article he says:
"For those of you unfamiliar with the NYMEX, it's the exchange where commodities like orange juice, pork bellies, gold, crude oil, natural gas, copper, and silver are traded. (A good deal of the Eddie Murphy movie Trading Places takes place there.)"
#1)OJ is traded at the New York Board of Trade (NYBOT), NOT the NYMEX.
2)Pork bellies are traded on the Chicago Mercantile Exchange (CME), NOT the NYMEX.
3)Trading Places was filmed at the old NYBOT floor, which was destroyed in 9/11, again NOT the NYMEX.
He might want to check the facts before posing as a financial genius. He sounds like one of my clueless clients...
n response to anonymous above. Ilove your way of thinking. I buy textile in China. Chinese all think we are jackasses to be over-charged, and to stupid to know the difference.
We need more people like you,screwing them and bringing the profits back to America.
OUR NEW NATIONAL SAYING SHOULD BE
F*** the CHINESE
F*** their WOMEN
Let them work for pennies a day,they would kill us if they had a chance.
n response to anonymous above. Ilove your way of thinking. I buy textile in China. Chinese all think we are jackasses to be over-charged, and to stupid to know the difference.
We need more people like you,screwing them and bringing the profits back to America.
OUR NEW NATIONAL SAYING SHOULD BE
F*** the CHINESE
F*** their WOMEN
Let them work for pennies a day,they would kill us if they had a chance.
If precious metals make you feel comfy, then go for it. Just be prepared to have them taken away when TSHTF.
Fort Knox is empty and they Gold Bugs have been outlawed in the recent past, if wnyone watched the Fed Bank videos, they would know this.
To take it they have to find it first....
No opionion about Rich Dad Poor Dad.
Read the book and right now I am watching FOX NEWS.
What I don't like about the whole commodities trader making $70K per day argument is that 90% of traders lose their shirts whereas most people with a job, that they can do every weekday, tend to have sustainable incomes, sans layoffs and age discrimination. That's how a majority of this planet earns a living.
So, why is it prudent for everyone to use leveraged positions to earning the big dollars in trading when 90% will lose it all, 5% will do ok, and the top 5% will make the mint? This guy is a clown.
If an author has lost credibility, that makes it hard to want to read his next book, even if one might agree with the overall thesis of that book. It is fair to say you don't care for an author, based on his other books or on criticism of his work. That is not pre-judging.
The secret to wealth: write a book about how to get rich. No charge for that tip, 'cause I love ya.
This guy is right on! But the have-nots are out multiplying the haves (rich). If the down turn is as bad as he claims then we may have social unrest. Remember the 90% tax bracket for the rich?
Soup lines and depression are possible.
I heard some guys behind me at the airport making fun of the Euro as "fake money". Maybe it's "fake" but it has greater buying power now than the U.S. dollar, and if inflation and the national debt continues to go unchecked, it's only going to get worse.
I don't know about anyone else, but I don't consider it earth-shattering news to read on HP that we Americans, in general, are ignorant dumbasses when it comes to money.
What a total ass clown. You know, he's right, it is basically just a decision to make 70k per year or 70k per hour. Yeah. I think I'll make the decision to go make 70k per hour and work a long day tomorrow, and then retire for a decade or so, and then maybe go work another day when money gets tight. What a total ass clown! Why don't we all just go work for a day a decade at the NYMEX? Duh! What were we thinking. Oh, I know - we were thinking we don't live in fantasy land. Or maybe it's because we don't have his incredible resolve and are just not so great as him in general. I bet this ass hat still has a silver spoon hanging out of his mouth, and something tells me he himself hasn't made the "decision" to make 70k per hour. What an out-of-touch, turd-burgling ass-clown. Why do we let guys like this talk? Reading crap like this makes me think the first amendment was a mistake. Someone needs to put me in charge of censoring bags of douche such as this fellow. Every time he spews some of this genius, I should get to bust him in the grill with a baseball bat, until he shuts his dumb cakehole. If only this were a just world.
He is absolutely SPOT ON! Has anyone seen our trade deficit graph, it's downright SHOCKING! I don't think the average American even knows what the words "trade deficit" mean, what a total and complete shame for the greatest nation on earth.
BelchORama,
You sure summed him up correctly. I was thinking the exact same thing as I read the article. Guys like Kiyosaki are so out of touch that they do not realize that 70K a year would be a dream for many people.
Kiyosaki has mde his fortune writing books that preach this crap to the gullable.
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