If you read "The Great Bust Ahead" (Arnold), "The Great Boom and Bust Ahead" (Harry Dent), or "Prophecy" (Robert Kiyosaki), you'll find that we're headed toward a depression that could last between 12-14 years; starting around 2010.
There are too many people over-extended on credit and a glut of baby boomers will be retiring.
Based on the factual data for the past 80 years, once the current 49-54 year old age bracket moves into retirement, there will no longer be the economy-driving spenders we once had.
Also, the 70.5 year olds are required by law to start withdrawing from their 401k's.
2006-07-07 04:11:56 · 8 answers · asked by Yo yo 2 in Business & Finance ➔ Personal Finance
Increase cash reserves, buy some hard assets, keep a lean balance sheet- be ready to take advantage of the opportunities that will be presented-
Think about it this way-
By the end of the depression you could be a land barron!
2006-07-07 05:41:35 · answer #1 · answered by cigarnation 3 · 1⤊ 3⤋
First of all, Harry Dent also wrote a book entitled, "The Roaring 2000s," which predicted the Dow would go to 35,000. That didn't come even close to happening. Why should we believe him now?
Arnold's book is to a great degree based on the idea that he feels Japan's long term woes have been caused by their elderly population. Most experts believe many of Japan's problems were caused by a foolishly regulated (by government) banking industry, and by accounting rules that effectively allow businesses to hide the fact that they may be holding worthless assets (something not in any way permissable elsewhere in the first world).
When people withdraw from their 401ks, they'll spend money. That's not such a bad thing.
However, I agree the facts that we have droves of heavily indebted consumers, along with suddenly crazy oil prices, and rising interest rates (notably, Europe has only begun to raise their interest rates) are reasons to be concerned. Also, many places in the USA are possibly borderline bubblish on the home real estate front - if the pendulum starts to swing back, that will wreck the financial picture of many, many people.
I don't believe in getting panicky, though. Avoid big time debt. Don't gamble big on real estate as a "sure thing." I wouldn't buy a house or condo right now ... I would wait at least a year to see if the higher interest rates are going to KO the market. Keep your investments diversified, with at least 1/3 or maybe even 1/2 invested in top quality bonds (not super long term), and also some of your long term money invested outside the USA.
You might even consider having a big chunk of money invested in short term CDs or similar ... interest rates (in the USA) are now about 5% on these very safe vehicles, that is not bad at all. The stock market has done nothing over the past 5 years (compare where the market is now, to where it was in July 2001, and you'll see what I mean). A sure 5% is not bad at all!
2006-07-07 17:15:14 · answer #2 · answered by West Coaster 4 · 0⤊ 0⤋
The Bible prophecies a Great Tribulation, though it gives no specific date. Not only will economic issues occur in the U.S., but all kinds of problems will be occurring worldwide on the greatest scale ever seen in human history. The Bible says that there is nothing that mankind will be able to do during that time except for relying on God to help them through. So basically, I will continue doing what I am doing now - putting my trust in God.
2006-07-07 11:19:41 · answer #3 · answered by Vanessa B 4 · 0⤊ 0⤋
I'll do what I need. These people can predict all they want, but as we well know, predicting anything is pretty useless because people are wrong more than right. Sure, you can say these people are big economists, but what makes them different from weathermen who went to school to study meteorology? Weathermen are right 30% of the time or less.
2006-07-07 11:15:16 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Nothing. Hopefully build a business strong enough to survive the down turn. Maybe move to Europe or China.
2006-07-07 11:15:22 · answer #5 · answered by skifaster6 3 · 0⤊ 0⤋
We need to import the kids that are a result of China's one child policy. This news article says they will be big spenders.
2006-07-07 11:16:27 · answer #6 · answered by cucumberlarry1 6 · 0⤊ 0⤋
I'm praying I can pay off my debts before then, and that I can start saving so I can better support my family.
2006-07-07 11:16:35 · answer #7 · answered by Falcon_01 6 · 0⤊ 0⤋
Live within my means & save - make sure you are locked into fixed rates for your mortgage.
2006-07-07 11:15:19 · answer #8 · answered by savagescorpio 3 · 0⤊ 0⤋