Click Here To Purchase Aftershock: Protect Yourself and Profit in the Next Global Financial Meltdown

Authors: Doctor David Wiedemer, Robert Wiedemer, and Cindy Spitzer

Publisher: Wiley and Sons

ISBN: 978-0-470-91814-2

This book opens with stating that the first book in this series by Ms. Spitzer, America’s Bubble Economy, predicted the bubbles that have already popped [paraphrase) (2011, p.3) Furthermore, they [the authors] “…were able to see a fundamental underlying pattern that others were-and still are-missing.” (p.4) Plainly they state, “In this pattern, we saw bubbles…We saw six big economic bubbles linked together…each conjoined bubble was leaning heavily on the others.” And that, “…the evolving economic facts on the ground did not justify the volume of the bubbles.” Which precipitated the following, “…high-flying asset growth that is not firmly pinned to real underlying economic drivers is not sustainable.” (p.5) It appears that their evaluations were spot on as nobody saw this bubble drop coming even with all of the real economic indicators firmly pointing in that direction.

On page 6 (2011) the authors state that, “We are not in a typical “down market cycle” this time, awaiting an inevitable “up cycle”. The difference this time is the multi-bubble economy.” They term this multi-bubble economy as a “bubblequake”. After the bubble quake dust settles we edge into Aftershock.

Differences between a typical recession and the scenario of now are: “…in terms of key areas, such as job creation, new home sales, and auto sales, the economy remains well below the levels it hit prior to the financial crisis.” (2011, p.12) Unless, and until, we can see some of these key indicators rise, and not just on one level, but somewhat in tandem, we cannot begin recovery. The authors believe that “…we’ve been setting ourselves up for this multibubble fall over many years. Beginning with our decision in the early 1980’s to run large government deficits…”. (p.27)

As proof of this bubble dominated economy the authors offer the following. “…home prices barely rose on an inflation-adjusted basis until the 1990’s and then just exploded in2001.” (2011, p.29) And that, “…while home prices exploded, the inflation-adjusted wages and salaries of the people buying the homes went up only 2 percent for the same time period.” People with an economic background should realize that unless wages and salaries increase, at least in pace, with home prices something is seriously amiss.

With regard to the stock market the authors offer that [paraphrase] between 1928 and 1982 the DOW only rose 300 percent. (2011, p.30) However, “…in the next 20 years the DOW increased an astonishing 1200 percent, growing four times as much as before, in 70% less time. But, that growth came without four times the growth in company earnings or our GDP.” They go on to say, “Population growth and personal income growth are the key drivers of GDP growth…”. And, “…the value of financial assets as a percentage of GDP held relatively steady at around 450 percent since 1960…in 1981 it rose to over 1000 percent in 2007.”

Allowing people to spend more than they could truly afford to was a huge mistake in retrospect. We now have a glut of homes that nobody can finance that have fallen to half or less of their original purchase price. Unemployment is higher than ever before. The stock market is a bumpy ride with no clear sailing in sight.

The next two bubbles to drop, according to the authors, is our mounting national debt and a stagnant to downward twisting dollar. I agree with their assessments thus far. If we do nothing we may be doomed. Can we do anything to save ourselves? Read this book for tips and pointers on how, and where, to place your money so you do not lose it entirely.