Below are just a few of the forecasts, predictions and insights contained within America's Financial Apocalypse (2006 expanded ed).
If you have not already read this book (table of contents) we highly advise you do so immediately, as this book will remain valuable for many years to come.
Predicted the collapse of the commodities bubble in 2008/2009 and told readers that would be the time to buy - Chapter 14
Warned that the credit rating agencies were passing AAA ratings to risky mortgage debt – p. 219
Warned of the lack of adequate regulatory authority over the MBS market positioned it for a massive collapse – p. 222
Warned of a mortgage-related derivatives meltdown resulting in losses in the trillions of dollars – p. 221
Warned that the banks would suffer as a result of the implosion of the MBS market – p. 223
Warned that an implosion of the MBS market would lead to a massive sell-off in global stock markets - p. 223
Stated the that Fannie and Freddie would be bailed out by taxpayers – p. 221
Predicted Dow Jones 6500 - Chapter 16, pp. 336-42
Predicted the collapse of the housing bubble would lead to a 30-35% decline in median home values, and 50-60% in CA, FL and select cities.
Recommended readers to short Fannie, Freddie, other mortgage stocks, banks & homebuilders (Cashing in on the Real Estate Bubble).
Warned that the collapse of the real estate bubble and stock market would lead to the “Poor Effect,” opposite to that seen during a rising stock and real estate market – p. 201
Provided exhaustive evidence of a massive real estate bubble ready to burst – Chapter 10
Warned that GM and GE would collapse due to the real estate implosion – p. 223
Warned the ABS markets would implode – p. 223
Predicted and proved irrefutable evidence there would be a depression – Entire Book
Predicted there would be a New Deal – p. 346
Warned about the entitlements tsunami which will, by absolute necessity result in massive tax hikes -- Chapter 11
Addressed healthcare as the second biggest long-term problem faced by America and detailed the problems - Chapter 7
Advised investors to trade the volatility of gold rather than buy and hold – p. 381
Advised investors to invest in oil trusts as a way to deal with the high volatility of oil -- Chapters 17 and 18
Mentioned the possibility the Fed would intentionally create massive inflation in order to pay off the huge national debt – p. 362
Provided a generic asset allocation for conservative, moderate and aggressive investors – in each case, Cash was the #1 asset (so they would be able to buy after the market crashed). p. 383
Other assets recommended were oil trusts, gold, silver, Chinese funds (note my warning that China’s economy would correct, indicating a time to buy below), healthcare, TIPS, Dollar hedge with the euro – p. 383
Predicted an inflationary depression followed by brief periods of deflation if things got really bad (we experienced deflation during Q4, 2008) -- Chapters 16 and 17
Discussed effective ways to manage risk – pp. 376-385
Detailed how the government manipulates economic data (GDP, inflation, unemployment) and WHY - Chapter 11
Explained how America today (2006) shared many similarities to pre-depression America – Chapter 16, pp. 343-346
Warned of the possibility of China dumping U.S. Treasuries or using this threat for economic (such as unfair trade and currency manipulation) and political leverage pp. 308-309, 312
Explained how corporate America is destroying the middle class – Chapter 12, pp. 322-325, 257-262
Detailed America’s two-decade period of declining living standards – pp. 243-248
Proved how the economy under Bush was a disaster and was set to implode – Chapter 15
Explained how the dollar is backed by oil and how the Saudis have a huge amount of control of the fate of the U.S. economy, pp. 310-311
Predicted that most baby boomers would never be able to retire due to the stock market collapse – Chapters 8 and 13
NO ONE ELSE made these specific forecasts.
NO ONE ELSE wrote about all of these issues in advance.
NO ONE ELSE predicted (and presented massive evidence of) a depression.
For investment funds and financial institutions seeking to improve their performance