Secure your financial future before the next big bubble bursts
Aftershock provides a definitive look at the economic climate still ahead in 2015—and beyond—and details the steps you can take now to secure your financial future. Written by the authors who accurately predicted the financial crisis of 2008 and 2009, this book serves as both a warning and a game plan for investors looking to avoid catastrophic loss. This updated fourth edition has been expanded with new actionable insights about protection and profits in an increasingly confusing investment environment, and includes the latest data, updated charts and tables, and brand new coverage of monetary stimulus. With a look back at the domino fall of the conjoined real estate, stock, and private debt bubbles that triggered the last major crisis, this book paints a vivid picture of what to expect the next time the world's economy pops. You'll learn how to protect your assets before and during the coming fall, and how to capitalize on the opportunities everyone else is missing.
The housing bubble has popped, toppling banks and sending shockwaves of stock market misery around the world. It may seem like the worst is over. It's not. This book shows you what's still to come, and how to ride the crest instead of being sucked under.
Learn when, why, and how the global bubble will burst
Understand the repercussions that will reach into your accounts
Get up to date on the data, with expert analysis and insight
Start protecting yourself now with a few smart investment moves
The stock market, real estate, consumer spending, private debt, dollar, and government debt bubbles will burst, driving up unemployment, devaluing the dollar, and causing deep global recession. Aftershock helps you fortify your assets before the wave so you can enjoy clear skies after the storm.
Table of Contents
- Executive Summary
- Preface to the Fourth Edition of Aftershock
- Introduction: Your Guide to the Fourth Edition of Aftershock
Part I: The Coming Aftershock
Chapter 1: This Recovery Is 100 Percent Fake
- Isn't a Fake Recovery Better than No Recovery at All?
- If the Aftershock Has Not Been Canceled, Why Hasn't It Happened Yet?
- Still Not Convinced This Recovery Is 100 Percent Fake?
- Don't Believe the Stimulus Has to Eventually End?
- Wondering Why the Aftershock Hasn't Happened Already? “Animal Spirits” Are Keeping Us Going
- Please Prepare Now
- Chapter 2: America’s Bubble Economy
Chapter 3: Phase 1: The Bubbles Begin to Burst
- Bubbles “R” Us: A Quick Review of America’s Bubble Economy
- From Boom to Bust: The Virtuous Upward Spiral Becomes a Vicious Downward Spiral
- Pop Goes the Real Estate Bubble
- Pop Goes the Stock Market Bubble
- Pop Goes the Private Debt Bubble
- Pop Goes the Discretionary Spending Bubble
- The Biggest, Baddest, Bad Loan of Them All
- Chapter 4: The Market Cliff
Chapter 5: Massive Money Printing Will Eventually Cause Dangerous Inflation—So Why Hasn’t It Happened Yet?
- What Is Inflation?
- What Exactly Is Money Printing?
- How Does Money Printing Cause Inflation?
- Central Banks Gone Wild: The World Is Printing Money
- Where Is Inflation Hiding?
- The Arguments against Future Inflation Simply Don’t Hold Up
- This Is Not a Plan—It’s a Panic!
- The Real Problem with Rising Future Inflation: High Interest Rates
- The Fed’s Big Blind Spot: They Don’t Understand Where Growth Comes From (Hint: It Doesn’t Come from Rising Bubbles or Massive Money Printing to Support the Bubbles)
- When Will Inflation Begin? When Group Psychology Turns Negative after the Market Cliff
- The Inflation Deniers Are Liars!
- Chapter 6: Phase 2: The Aftershock
Chapter 7: Global Mega-Money Meltdown
- The United States Will Suffer the Least
- Think of the World’s Bubble Economy in Two Categories: Manufacturing and Resource Extraction
- How the Bursting Bubbles Will Impact the World
- If the World’s Bubble Economy Is Hit Harder than the U.S. Bubble Economy, Won’t That Be Good for the Dollar?
- If the Rest of the World Is Collapsing, Won’t That Be Good for Gold?
- International Investment Recommendations
Chapter 8: “You're No Fun”
- Florida: ”You're No Fun”
- Philadelphia: Wharton Meets Wall Street
- Green Bay, Wisconsin: I Can Be a Cheerleader, Too—in the Right Places
- North Carolina: People Know in Their Gut that What I'm Saying May Be Correct
- New York City: The Turkeys Were Living the Good Life Until …
- New York City Again: When You Abolish Failure, You Institutionalize Stupidity
- One Last New York Story: Is He Really Smart or Really Stupid?
- A State of Extreme Denial Exists in Parts of the United States
- What's the Smart Money Doing Now? Just What They Did Before the 2008 Financial Crisis! Same Denial Now as Before
- The Sun Will Shine after Every Storm (From My Hotel Room in North Carolina)
- Chapter 1: This Recovery Is 100 Percent Fake
Part II: Aftershock Dangers and Profits
Chapter 9: Covering Your Assets
- The Three Rules for Not Losing Money
- These Rules Are Simple but Not Easy!
- Long Term versus Short Term
- Rule 1: Exit Stocks Well Before the Market Cliff
- Rule 2: Stay Away from Real Estate Until after All the Bubbles Pop
- Rule 3: Avoid Bonds and Most Fixed-Rate Investments as Interest Rates Rise
- Where's the Best Place to Stash Cash?
- How Long Must We Follow These Three Rules?
- Letting Go Is Hard to Do
- What Else Can I Do to Protect Myself?
- Remember, Your Net Worth Is Not Your Self-Worth
Chapter 10: Cashing In on Chaos
- Plenty of Profit Opportunities, but They Will Feel Quite Uncomfortable, Even Scary at Times
- This Economy Is Evolving; Your Investments Should Evolve, Too
- Three Goals of an Evolving Aftershock Investment Portfolio
- Reducing Risk with a New Kind of Diversification
- Two Other Aftershock Investments after the Bubbles Pop: Foreign Currencies and Foreign Bonds
- Timing Is Everything before the Bubbles Pop, but Your Timing Won't Be Perfect
- Putting It All Together
Chapter 11: Aftershock Jobs and Businesses
- The Rising Bubble Economy Created Huge Job Growth; Now the Falling Bubble Economy Means Fewer Jobs
- Conventional Wisdom about Future Job Growth Is Based on Faith that the Future Will Be Like the Past
- Why Conventional Wisdom on Jobs Is Wrong
- What's a Savvy Aftershock Job Seeker to Do?
- The Falling Bubbles Will Have Varying Impacts on Three Broad Economic Sectors
- Should I Go to College?
- Opportunities after the Bubbles Pop: Cashing In on Distressed Assets
- Dig Your Well before You Are Thirsty
Chapter 12: Understanding Our Problems Is the First Step Toward Solving Our Problems
- If You Don’t Understand Why an Economy Grows, You Can’t Understand Why It Doesn’t Grow
- You Need to See the Big Picture before You Start to Focus
- Key Breakthroughs in the History of Economic Thought
- Economics Needs a Breakthrough Big-Picture Idea like Geology Needed Continental Drift
- So Why Aren’t We Getting an Alfred Wegener or a Breakthrough Idea like Continental Drift?
- Economists Have Become Academia’s Version of Financial Cheerleaders
- The Demands to Get Tenure and the Rewards of the Good Life after Tenure Have Delivered a One-Two Punch to Creative Economic Thought
- Where to Now? Answer: Economics Needs to Move from Being a Collection of Competing Philosophies to Being a Unified Science
- Four Key Elements for Making Economics More of a Science
- Where Do We Stand Today in Making This Transition?
- The Economics Profession Does Not Want to Make This Transition
- The Solution to the Lack of Interest in Making Important Changes in Economics: The Coming Aftershock
- Chapter 13: Our Predictions Have Mostly Been Accurate, So Why Do Some People Still Dislike Them?
- Chapter 9: Covering Your Assets
- Appendix: Are the Bond, Stock, and Gold Markets Manipulated?
- Epilogue: Say Good-Bye to the Age of Excess
- Title: Aftershock: Protect Yourself and Profit in the Next Global Financial Meltdown, 4th Edition
- Release date: July 2015
- Publisher(s): Wiley
- ISBN: 9781119118503