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The economy is the biggest bubble in world history, says Robert Kiyosaki

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Re: The economy is the biggest bubble in world history, says Robert Kiyosaki

#31

Post by nly »

phkahler wrote: post #23
dehrmann wrote: post #18

The term "bubble" gets misused a lot, to the point that they describe any asset appreciation that might be due for a 30% correction as a "bubble." Tulips were a bubble. Dot-coms were a bubble. Housing in 2021 wasn't because prices were driven by real market forces (asset appreciation elsewhere, low interest rates, increased demand for housing due to WFH), not just a speculative mania backed by hopes and dreams. I lik…

Housing in 2021 was driven by low interest rates. That is over.

It's not over until the market reaches equilibrium. Modest 3 bedroom homes up to an hours commute outside central London are still up to 20-25x the average UK wage. Even with 2 average incomes you're looking at 10-12x.

The math (based on shift in interest rates) says there should be a 30% correction, but the reality is nobody is predicting that. More like 10-15% over the next 2 years.

Meanwhile rents are going in to the stratosphere as people abandon their home-owning aspirations.

Higher rates are doing nothing but causing suffering. Inflation is expected to persist and official projections of it suddenly falling away seem contrived.

Re: The economy is the biggest bubble in world history, says Robert Kiyosaki

#32

Post by javajosh »

next_xibalba wrote: post #16

Whenever these proclamations stress me out, I remember this: The atom of the economy is a human. There are almost 8 billion of us. We will continue to need shelter and food. We will continue to want better and better lives. There will always be booms and busts. But demand will never disappear.

Civilizations do collapse, and that means loss of life and that means loss of demand. That would especially be true in a collapse of today's world, where high-tech farming methods keeps us fed, and globalism keeps all of us wealthy and fat. If we can price the cost of keeping civilization (esp the biosphere) alive into our economies, then by God I'd say capitalism deserves to be crowned the GOAT of civilization organizing principles. Sadly, capitalism is failing terribly at this, and is in fact acting like ignorance is bliss. So dumb!

Re: The economy is the biggest bubble in world history, says Robert Kiyosaki

#33

Post by FollowingTheDao »

chrisbaker98 wrote: post #24

Skin in the game. If he thinks the economy is going to crash, he can put his money where his mouth is and short the economy so that he stands to lose something if his predictions are wrong. Until then, I don't care what he predicts.

This is probably one of the most foolish statements I always hear on HN and it is also a logical fallacy.

Also, you have no idea what his position with the market is.

When people talk like this, IMHO, it is out of a fear of something they do not want to believe.

Over a year ago, Sept 21, 2021 he said:

"Giant stock market crash coming October. Why? Treasury and Fed short of T-bills. Gold, silver, bitcoin may crash too. Cash best for picking up bargains after crash. Not selling gold, silver, bitcoin, yet have lots of cash for life after stock market crash. Stocks dangerous. Careful."

He was wrong with his timing on the stock market crash, but Bitcoin is down 70% from then.

Re: The economy is the biggest bubble in world history, says Robert Kiyosaki

#34

Post by gitfan86 »

He has been saying similar things for 15 years.

Because he is old he doesn't understand how fractured the world is today. For example, 100 people could create some new crypto token and mint 100 trillion coins. Then they could sell 100 of those tokens online for 100 dollars. Technically that would mean that the marketcap of crypto is now 100 trillion and very likely that this value will plummet in the future. That would be a 'huge' bubble, but have very little impact on the real world since it only effects a small number of people

Re: The economy is the biggest bubble in world history, says Robert Kiyosaki

#35

Post by ddihfygdgf »

ergvgdvgrd wrote: post #30
anti-soyboy wrote: post #12

Earlier quoted context omitted.

That book is the perfect stupid people's detector

I'd love to be half as stupid as the majority of landlords I know in my local landlord association who speak highly of RDPD.

do you really want to live as a crappy small landlord collecting rent from strugling young couples? bravo.

Re: The economy is the biggest bubble in world history, says Robert Kiyosaki

#36

Post by sdiacom »

ddihfygdgf wrote: post #35
ergvgdvgrd wrote: post #30

Earlier quoted context omitted.

I'd love to be half as stupid as the majority of landlords I know in my local landlord association who speak highly of RDPD.

do you really want to live as a crappy small landlord collecting rent from strugling young couples? bravo.

It's the American dream. Always has been.

Re: The economy is the biggest bubble in world history, says Robert Kiyosaki

#37

Post by codefreeordie »

georgeburdell wrote: post #8
jstx1 wrote: post #2

Maybe it is but the guy is a snake oil salesman who doesn't deserve more attention for saying this.

He’s the author of Rich Dad, Poor Dad, right? I know a few people who were helped by his book. What is your issue?

There is some good material in that book, and it is written in a manner that appeals to a wide audience, so the book does some good, but generally, Kiyosaki is a salesman (of himself as a genius) above all else, and often gives hot takes that will draw attention but have minimal real value behind them.

This claim is typical of a Kiyosaki take: it is extreme, it seems plausible, it draws attention, and it has no real basis in research or reality. I'm not saying the economy won't crash (it might or might not), but Kiyosaki doesn't have specific data backing his thesis.

Re: The economy is the biggest bubble in world history, says Robert Kiyosaki

#38

Post by ergvgdvgrd »

ddihfygdgf wrote: post #35
ergvgdvgrd wrote: post #30

Earlier quoted context omitted.

I'd love to be half as stupid as the majority of landlords I know in my local landlord association who speak highly of RDPD.

do you really want to live as a crappy small landlord collecting rent from strugling young couples? bravo.

Moral aspersions aside, dumb they aint.

Re: The economy is the biggest bubble in world history, says Robert Kiyosaki

#39

Post by dimal »

engineer_22 wrote: post #15

Economy is clearly on shaky footing. My child has a sore throat, and my doctor tells me there's an antibiotics shortage. First time in my young life I've heard of an antibiotics shortage. I work in construction, housing, and there are materials shortages causing price increases and delays. My parents are talking about retirement, how the recent crash has made them reassess their position. I remind them there's a lot…

How much of those shortages are simply from the supply chain crunch? I keep reading how that is easing.

Re: The economy is the biggest bubble in world history, says Robert Kiyosaki

#40

Post by TaylorAlexander »

LastTrain wrote: post #10
georgeburdell wrote: post #8

Earlier quoted context omitted.

He’s the author of Rich Dad, Poor Dad, right? I know a few people who were helped by his book. What is your issue?

His ideas do not scale, so while they may help an individual here and there, they are not helpful for society on the whole. Just my opinion.

Yeah. I understand that for some people, personal wealth is their primary goal, but for me I’d prefer a modest life where those in my community are also able to achieve something similar. I’d rather be a worker in a healthy cooperative than a land owner extracting rents from hard working people earning minimum wage. So books about how to be a land owner seem to me to undermine the society I’d like to see.
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