July 02, 2007

Flip Flop: Real estate "guru" Kiyosaki now on record predicting a housing crash. Welcome to the club.

I have a love/hate with Rich Dad / Poor Dad Kiyosaki. I believe what he has written about entitlements, debt, and the coming crash. But I think he's personally a huckster and salesman. But he's right on the content, it's the deliverer that makes me squirm.

Here's the huckster, telling it like it is - a great crash is coming.

No matter your views of him personally, do take his advice and get ready. It's especially funny for someone to be shouting CRASH! CRASH! CRASH! when just a few months ago he and Trump were running around the country giving "how to get rich in real estate" classes with Learning Annex Real Estate Wealth Expo. But alas, crash is coming. Timing is everything. Kiyosaki made $$ on the way up, and now he's positioning himself to make $$ on the way down. Brilliant.

Today, I'm predicting the next crash, what I believe will cause it, and why it'll be a severe blow to the global economy. The signs are already here.

First of all, it's no big deal to predict booms and busts. All markets boom and bust. It's just easier to predict a bust because the signs are so obvious -- like excess euphoria, easy access to money, huge profits, and scores of happy amateurs entering the market.

The world has never been in this position before -- and the whole world is involved. That's because Nixon's actions in 1971 made the United States into a virtual empire. As an empire, we began dictating the terms of world trade: If you wanted to do business with us, you had to accept our new dollar as gold. Unfortunately, the world complied.

While it's tough to predict the future, one thing is for certain: The U.S. dollar will continue to go down in value, and savers will be losers. With people all over the world piling debt upon debt and spending like fools, it might be best to follow the Chinese.

They've never trusted banks, but have always trusted gold. Maybe it's time we started doing the same.

23 comments:

Easy come, easy go said...

Yep a day late and a lot of equity short. Guess he could not help ol Casey. Not to worry, we will create a new bubble and some will never admit plain realities. For example some guy in another post here said this:

Anonymous said...
What I have learned on HP:

Flordia: bad
Arizona: bad
Las Vegas: bad
Atlanta: bad
OC: bad

According to you freaks, every city is a shithole, every state is not worth living in, every tourist area is not worth going to.

I cannot imagibe what it must be like to live in such a perpetual funk.

What is incredible is that there is somebody who can use a computer and argue these places are habitable by humans with an IQ above room temperature (o.k. maybe except Atlanta some history and some charm--hey at least they invented Coke--but) and that tourist traps are to be venerated. Basically taken one thing with another Americans are morons and well a nice crash is inveritable. the top 2% of the country are indeed among the best and brightest on the globe (and they do not live in Florida, Arizona or OC--D.C. San Jose, Chi-Town, Manhattan, Boston) but the other 98% can just as easily and better yet be replaced with help from abroad. I will take an Indian engineer and three Mexican workers over 10 real estate clerks or "account executives" any day......Crash away--commuppance is essential.

Horatio said...

I will see your 1 indian engineer and 3 mexicans and raise you two chinese, a puerto rican, and a pair of russian jews! ha! FULL HOUSE!

Mitchell said...

RK seems to be espousing the thesis of Bonner & Wiggin's "Empire of Debt".

Anonymous said...

Gold is the enemy of central banks everywhere. Look for gold to be attacked through sales, short sales, etc., because the central banks, especially the U.S. Fed are in that much of a corner. But yet gold will keep going higher.

the time is nigh! said...

THE DEATH OF CAPITALISM, PLAIN & SIMPLE!

Anonymous said...

Dollar will have to be re-invented and a new scam invented- hey we made it 36 years with this scam- suckers... thanks!

Anonymous said...

Thank you Captain Obvious!

Anonymous said...

Yes - if only we were more like the Chinese everything would be better. Does that also include killing 30 million of your fellow countrymen and still use of the gulag system?

Marky Mark

Anonymous said...

Kiyosaki pumped RE when it was obvious there was a bubble.....Then why in the world would I take his recomendation on buying Gold??

james dean said...

Anonymous said...

Kiyosaki pumped RE when it was obvious there was a bubble.....Then why in the world would I take his recomendation on buying Gold??


Good point. Gold looks very pricey at these levels...

Check out Ron Paul's article - What the price of gold is telling us
http://www.lewrockwell.com/paul/paul319.html

Anonymous said...

The day Nixon axed the gold standard is the day US currencty printing presses went into overdrive.

james dean said...

the top 2% of the country are indeed among the best and brightest on the globe (...) but the other 98% can just as easily and better yet be replaced with help from abroad

A) We can start by replacing you, then your family, and lastly your children and grandchildren. We will provide you free passage to Darfur.

B) loy·al·ty
Pronunciation[loi-uhl-tee]
–noun, plural -ties.
1. the state or quality of being loyal; faithfulness to commitments or obligations.
2. faithful adherence to a sovereign, government, leader, cause, etc.

C) Do we really need to have the whole USA be the best in the world? Do we need realtors and assembly workers with PhDs? Ask any boss if he wants everyone in his organization to be the best and brightest. Of course not! He wants people whose talents and aspirations match the individual job descriptions. 98% of the jobs would never satisfy the best and brightest in the country! Duh!

D) Foreign born Americans are not nearly as innovative as native born Americans. Second generation Americans are very innovative but spare me your crap about how great non-Americans are, they trail America in almost everything. (Third, fourth, fifth, .... generation Americans are more interested in quality of life than corporate servitude. Can you blame them?) Foreigners simply stay in school and get PhDs because they are living in caste social structures where the PhD is required for ascension - that is when you can't innovate or creatively climb the ranks. Gee, I can't wait till America is like that.

E) Where problems exist with American workers - look to the parents, managers, educators, and leaders at every level. We are only marching to the beat they are drumming. We have 100 Senators in this great nation; about 70% of them deserve to be picking fruit in California. Are they part of your esteemed 2%?

I am gagging on my own vomit at this point so I will close.

RJ said...

Anonymous said:
Kiyosaki pumped RE when it was obvious there was a bubble.....Then why in the world would I take his recomendation on buying Gold??

-----------------------------------

Gold is the global currency safehaven regardless of Kiyosaki's opinion. The "dollar" is becoming very shaky and it's not clear how much longer the global community will continue to cooperate in propping it up.
If the USD index drops below 80, it could be a long way down. It's currently holding above 81.
I look at owning physical gold and silver as protection in the event of a collapse in the value of currency since these are monetary metals. As investments? I don't speculate.

Anonymous said...

Kiyosaki is an idiot, but he sort of had the right idea: The next generation will be writing a book titled "Rich Grandfather, Poor Dad".

Anonymous said...

Doesn't he now own a gold exchange or something?

Of course he is going to blow his horn about gold.

Whether he is right or wrong is another story...

Anonymous said...

"trumped" with six crooked Nigerians,... scary!! :

Frank@NeverColdCall.com said...

There's no news here. He's been predicting a housing crash for at least two years. I saw him speak in July 2005 when he predicted a crash, and he's been preaching about the coming crash ever since in his Yahoo Finance column.

Anonymous said...

July 02, 2007 4:10 PM
Doesn't he now own a gold exchange or something?"

July 02, 2007 10:25 AM
RK seems to be espousing the thesis of Bonner & Wiggin's "Empire of Debt".

====================================
One of the gold companies is Yamana (AUY) - RK's mother's maiden name - you "cudda" gotten say, 500K shares for $0.10/share a few years ago before it was listed on AMEX.

RK is a big fan of Duncan's Dollar Crisis.

Before his website got "slick", richdadgold provided an interesting perspective on RK's view of gold. Using his 3 piggybank approach (fixed $ amount every day - 1/3 trading/investing, 1/3 charity, 1/3 savings), his 1/3 savings goes to puchase gold or silver bullion coins. A friend of mine follows this approach and puts in $100 daily.

Oh, and Bill Gates owns 1/3 interest in PAAS.

Magon said...

To:
Anonymous 2:27 PM

I would argue that the day in 1963 JFK axed silver coinage and silver certificates is the day US currency printing presses went into overdrive.

Coincidentally, the day JFK was shot was also the day i saw my first dollar bill not redeemable in silver.

James Dean is Dead (brain dead that is) said...

James Dean Said,,
Foreigners simply stay in school and get PhDs because they are living in caste social structures where the PhD is required for ascension - that is when you can't innovate or creatively climb the ranks. Gee, I can't wait till America is like that.

It is like "that" do you think you would be hired at goldman Sachs, get a plum corporate job or a slot at a top tech or law firm with out a degree from a top school? You really think you are in an equal class with a Harvard or Stanford MBA, Law or MD? Who are you kiddiing? Instead of spewing the home of the brave myth and vomiting you should look at the reality around you. You sure are NOT in the top 2% that other guy was talking about. Go vomit that is probably as productive an activity for you as can be hoped.....

james dean said...

james dean is dead said:
blah blah blah....really he didn't say much of anything...


I am not dead. Mom, is that you?

I am not really sure why you feel you know the intimate details of my life nor why you would choose to attack me personally when there were plenty of arguments in my post that you could have tried to debunk. Are we to assume you are in the top 2%? Judging from your abhorent writing style, I am guessing you are an illegal.

I don't really associate education with being in the top 2%. I never went to college because I recogized it was just more crap. When I was young, I played in rock bands, studied philosophy, traveled the world, and got laid often. Now I write software for the largest regional bank in my bubble city and make 100K per year. Going to college is required for astrophysicists and doctors but it is mostly irrelevant and injurious to our free market..... you and GW can brag about your Ivy league edumacation. I still see GW as an uneducated chimp. Oh, you too.

Anonymous said...

"Flip Flop"
"Pumped RE"
"Idiot"

===================================
Rich Dad's Guide to investments:
1. market timing
2. intest rates
3. laws

Start small and learn the business.

RK angered his RE friends by his 2005 yahoo column saying RE had peaked - see his prior and current RE coauthors.

He bought Oregon SFH during late 1980's crash, 1031'ed them into a large AZ apartment, sold his entrepreneurial education biz (Excellerated) and retired at age 47.

Critical posters calling RK an "idiot" - have YOU EVER DONE a 1031 exchange? Do you know anyone in your immediate circle who has?

Anonymous said...

THE DEATH OF CAPITALISM, PLAIN & SIMPLE!
---------------------------------

Long live communism! Oh, wait, that is already dead. Doh.