Main points on ‘Preparing for the Worst’

Author and speaker Robert Kiyosaki is adored by many and also hated by some. People in general who comment on blogs can get pretty nasty. You see it everywhere. On ESPN people go back and forth insulting each other over whose team is better or debating things like who is the greatest tennis player of all time, Federer or Sampras? On financial sites it’s even worse. People with big egos like to trash other people’s comments.

On Yahoo finance the bashing is out of control . As Kiyosaki tends to write in simple terms so normal people can understand what he’s talking about, some of the ‘financial experts’ that read Yahoo Finance hate his posts and tear them to shreds. I admit the guy repeats himself a lot but I enjoy hearing what he has to say. Maybe if someday my net worth is over €200 million then maybe I’ll look to someone with more sophisticated advice, but since I’m just an average Joe I have lots to learn from someone who has achieved so much financially.

Here are some good points from his latest Yahoo Finance article, ‘Preparing for the Worst’:

• In light of the recent stock market rally, he believes the stock market is being manipulated by the government, banks and Wall Street to prevent the market from crashing and to prevent a global panic.
• The same people who profited the most causing the problem are now being asked to fix the problem, allowing them to profit some more.
• Social Security and Medicare are Ponzi schemes because young people have to pay for old people’s social security benefits. Since a huge part of the population is now growing old a huge burden will fall on the smaller younger generation to pay for those benefits.
• When all the people now retiring take their money out of the stock market (by government obligation when invested as a 401k retirement plan) the stock market will take another big hit.

Kiyosaki thinks the worst is yet to come with these oncoming problems that have been documented for some time on top of the current financial mess. He sounds pretty correct to me.