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All Bubbles Burst

by SMD 


& All Booms Bust!

I was reading the Rich Dad insider article about the Real Estate bubble and he mentions the book,
The Dollar Crisis 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.

I wrote about this topic in these stories [Why it's impossible to get out of debt & Wondering About a Market Crash] and the discussion is definitely gaining momentum. It is too obviously similar to the tech bubble, the memories are too fresh.

What I love about the Rich Dad philosophy is that the purpose of Robert writing about the bursting of the bubble [whether currency or real estate] is not to insight fear or to grab attention but to teach us how to see the financial opportunities that will be presented when major reevaluations hit the markets.

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.

Robert now mentions that he is shifting out of real estate and recommends buying gold and silver coins or bullion. Buy the real thing not paper representation. Always part of a good portfolio, when the world currency valuations get as out of balance as they appear to be at the present, “real” assets are always where the crash will land.

The people who do have assets left after any major correction are in the position of being able to buy everything at a huge discount and that is what Robert is trying to teach us. Not only can a major correction be survived, it can be welcomed and made to work in your favor.

I’m not much in to real estate personally, but I do have a friend who claims that commercial real estate growth will continue much longer than residential.

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Comments

One Response to “All Bubbles Burst”

  1. bay99 on June 13th, 2007 3:02 am

    I find it odd, or I quess I don’t find it odd that we need someone besides the original author to interpret financial essayist and authors such as Mr. Kiyosaki. Shouldn’t he be able to do this in the original text? Thanks Jon, keep up the good work!

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