All Booms Bust
Words of Caution from Robert Kiyosaki
Lately, I have been asked if we are in a real estate bubble. My answer is, “Duh!” In my opinion, this is the biggest real estate bubble I have ever lived through. Next, I am asked, “Will the bubble burst?” Again, my answer is, “Duh!”
It was only a few years ago we were in a real estate depression, which proves how quickly people forget. In 1987, the stock market crashed and the Savings and Loans went out of business. That led to one of the biggest real estate fire sales in history.
By 1991, the real estate market was depressed and it remained depressed until around 1998. In Hawaii, the real estate market remained depressed until 2001. Today, the Hawaii real estate market is on fire and people have already forgotten how bad the market was.
So the answer to the question, “Will the real estate bubble bust?” is an emphatic, “Yes. All bubbles bust.” The reason I write this alert is because this time, when the bubble bursts, I think it will be a monster. Never in my life have I seen so much money being made on such weak fundamentals. If you think the last recession caused by the bubble bust was bad, the coming recession will be at least twice as bad. It might lead to a depression.
The reason I put forth this alert is not to frighten anyone. The reason I put forth this alert is to say get prepared for the coming economic changes. Presently, although Kim and I are still buying real estate, we are also selling our “junk” real estate. Eight months ago, Kim put on the market a small apartment house valued at $1 million, for $1.4 million. People complained and no one bought it. So four weeks ago, she raised the price to $2.0 million and it sold in one day for full price. To me, this is more than a bubble… it is a mania.
As many of you know, the best time to get rich is after a crash. My suggestion is: if you are new to real estate investing, this is not the time to jump in. If you are holding “junk” properties that are costing you money, you may want to consider unloading them.
How long will the bubble last and keep expanding? I do not know. I just wanted you to know that I am currently preparing for a crash, an economic recession, and possible global depression. Why? Because this is a very big worldwide bubble… the biggest I have ever seen.
SAVERS ARE LOSERS
Also, I am getting rid of my U.S. dollars. As you may know, the U.S. dollar has lost nearly 40% of its value against other currencies in the last four years. That means if you have $10,000 in savings in the year 2000, it is worth about $6,000 in purchasing power. Rather than holding cash in the bank, Kim and I have been holding our excess cash in gold and silver bars. Why? Because you will know that the dollar is falling because the price of gold and especially silver will begin to rise. When silver goes higher than $8.50 an ounce and gold reaches $500 an ounce, you will know the end is near. When the crash comes, the currency of many countries will go down in purchasing power as the price of these two precious metals rise in value.
A GREAT BOOK
This past weekend, I held a class for about 150 people on the book entitled “The Dollar Crisis,” authored by Richard Duncan. If you want to better understand why the real estate bubble bust and the crash of the dollar will probably lead to a prolonged recession, you may want to read this book sooner rather than later. In a nutshell, we really do not have a real estate bubble… the world is in a currency bubble. In other words, the governments of the world have printed too much “funny” money and cash will soon turn to trash.
Even if you are not in real estate or are saving dollars, you may want to read this book to find out what you need to invest in now, before the bubble bursts. If you are in stocks and mutual funds, you definitely want to read this book.
GREAT NEWS
Again, I do not write to frighten anyone. I write primarily to encourage people to prepare for one of the biggest and best opportunities to win financially. My book, Rich Dad Poor Dad, came out in 1997, at the height of the stock market boom. In my book I wrote about my rich dad recommending I learn to invest in real estate. The people that followed my book’s advice rather than the advice of their stockbrokers, financial planners, and mutual fund advisors, did very well in real estate. Prior to 2001 and the stock market crash, many financial planners and stockbrokers criticized my book. Today, they are quiet. Today, while I am still in real estate, still buying great properties for cash flow and not flipping them, I am concerned about those who are invested in junk properties or are living in homes that they cannot afford.
If you only have a few dollars, you may want to go to your local coin dealer and buy silver and gold coins as close to the price of gold or silver as possible. I would not invest in “collectible” precious metal coins unless you really know a good collectible coin from a bad one. For as little as $20 you can buy a few precious metal coins and begin to take steps to prepare for one of the biggest crashes in world history.
Thank you for supporting the Rich Dad philosophy. Keep getting educated and always remember that the best time to get rich is right after the bubble busts.
Thank you and all the best.
Robert Kiyosaki
P.S. There is a saying that goes, “When your picture appears on the cover of Time Magazine, your career is over.” If you have access to the June 13, 2005 issue of Time Magazine, you will see a picture of a man hugging his home. The title and subtitle say, “HOME SWEET HOME: Why we’re going gaga over real estate.”
P.S.S. There is another saying that goes, “As General Motors goes, so does the U.S.”
Well, today, both General Motors and Ford have had their corporate bonds downgraded to “junk bond” status.
P.S.S. Rich dad would say, “As one party ends, another begins.” This real estate bubble has made many people very, very, rich. I hope it has made you rich. It has certainly made Kim and I very, very rich. But in my opinion, this party is over… so see you at the next party.
Replies
So your real name is Robert K, eh Bobby?
Welcome to the
Taunton University of Knowledge FHB Campus at Breaktime.
where ...
Excellence is its own reward!
Man, anymore doom and gloom and I dont know what I'm going to do!
If I had to live like that I'd probably sell everything I have and go live in the forrest somewhere.
Thats just to damn depressing, I hope the guys taking something for it. <G>
Doug
"If I had to live like that I'd probably sell everything I have and go live in the forrest somewhere."
Yeah, me too. Wait. I did that around 1980 and I'm still living on the same place. Now I'm really confused. Remodeling contractor who once visited the Glass City.
all that true.
I was just joking at Bobby because his full name would be Robert, and since he did not use any quotes or otherwise make it obvious that this was a cut and paste, it could have been taken as his writing....
Welcome to the Taunton University of Knowledge FHB Campus at Breaktime. where ... Excellence is its own reward!
My two cents:
Bobby has his facts really distorted.
And runs off at some weird tangent to reality.
Im sorry you take me that way, i did not mean to annoy you but give me some time and i will come up with something sooner or later;)
i did not mean to annoy you but give me some time and i will come up with something sooner or later
What you had to say doesn't annoy me, it makes me laugh.
Booms and busts are in every asset class. However, you seem to have forgot what followed those busts you mentioned.
The only ones that suffered the calamity in '87 you described are the ones who ran and hid for the hills as you suggest you are now doing. The others were back even within a year.
The last time ('79) they ran for gold and silver, those people are still under water.
Selling US dollars due to your forecasted purchasing power loss may make sense IF you're living outside our (or other country's that are pegged or demoninated in US$) borders. OTOH, simply diversifying one's assets into a larger position of a good foreign mutual fund hedges that risk satisfactorily.
May I suggest you spend some time with a good Certified Financial Planner (that is over the age of 50) that specializes in Investments. And stay away from those inflammatory extreme edge books.
Why do you think they write those books anyway? It ain't to save your azz. It's to sell books. And the more excitement and extreme stories they write, the more suckers buy their books.
You really think those authors are buying gold and silver bars? The ones that COST you delivery fees, storage fees, authenticity fees, and every other damn fee one can think of? No, they're buying stocks, municipal bonds, mutual funds, and big fancy houses. All thanks to people that really don't understand the underlying ecomonics, foriegn currencies and supply/demand characteristics.
Come back and talk after you've spent 20 years closely watching and participating in those markets as well as studying economics at the Masters level or above.
being as im slow i did not get the joke but this is from RKs site, i just thought it was intresting he was a real estate guru now wants to jump ship,
I never heard of the guy before. But if you say he wasa RE guru, I'll believe it. And since most gurus are on the edge (I'll let others say what edge, LOL) they are first in and first out sometimes.
It does not supriose me to see a RE tyke looking for a hole to hide out in.But since RE is such a good investment overall, he must have been more of a flipper than an investor since the depreciated values seem like they would make this a better time to buy than to sell.
I dunno - I do stocks myself, My only RE is what I live on/in
Welcome to the Taunton University of Knowledge FHB Campus at Breaktime. where ... Excellence is its own reward!
I was just joking at Bobby because................
Yea I knew you were just funnin with Bobby. I was just making an observation about all the doom and gloom BS. If I really thought that that was the inevitable I dont think I'd be wasting much time on here, I'd be stock piling some wepons, ammo and enough food to see me through it. Actually I doubt I'd be doing that either, I'm not about to let my life be ruined by something like that.
Doug
Hasn't Kiyosaki been uncovered as a fraud? I seem to recall a news program that uncovered this a couple of years ago. I didn't think anyone listened to him any more.
Hasn't Kiyosaki been uncovered as a fraud?
That seemed like an intersting trail to follow. What I have found is that John T. Reed is the basis for most of the claims that Kiyosaki's RDPD book is fraudulent.
His claim seems to be based on the fact that this motivational book does not consist of only scientifically verifiable facts and the fact that the identity of a character in the book, whom Kiyosaki claims he promised to protect, can not be verified.
There is also a lot of controversy about Reed himself.
Now, you should know that I haven't read any of either authors' books.
http://en.allexperts.com/e/r/ro/robert_kiyosaki.htm: Kiyosaki's books and teachings have been criticized by some for having anecdotal lessons, but lacking concrete advice on what exactly one should do. Many readers find his work highly motivational and educational, but some find it lacking information to put it to use. Kiyosaki responds that his material is meant to be more of a motivational tool to get readers thinking about money, rather than a step by step guide to wealth.
http://www.ripoffreport.com/reports/ripoff65784.htm: Consumers need to be aware that John T. Reed is the seller of Real Estate investment books and his sole way of selling these books is through his web site. He will not take phone, fax or mail order and will not issue refunds or allow returns.His site is almost entirely dedicated to putting other companies and individuals down who sell Real Estate books. He is known as a Consumer Advocate because of the way his web site is set up but the truth is that his site is designed to sell his own product.He is being sued for libel. . ..SamT
There are three kinds of people: Predaters, Prey, and Paladins. For the life of me, I can't see why Prey feels safer from predators by disarming and emasculating Paladins.
You really ought ot post the link of the source of copy/paste stuff.