Why America's Financial Apocalypse Might be the Most Predictive Investment Book Ever


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.