Kiyosaki has spoken - October economic crash coming!

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

5y

from my point of view crash and acceleration of economy are more like a big train or container ship or cruise ship.

when you start to bring it to a halt it takes time and miles and miles to do so inertia is too great.

we saw this with the GFC the worst crash basically in history .. We did not wake up one day it was a slow drawn out years long progression to the bottom ..

stock market of course has much greater velocity than real estate vis a vi crashing and rising from what i have seen.. But as it relates to real estate its just not possible for an entire market to crash in one months time.. you cant even get title work done these days in less than few weeks.. :) Foreclosures take months and months if not years and years.

And I know its not the vast majority on BP s method of investing.. But since the GFC there is a ton of real estate that was bought for cash and remains debt free.. far more than folks realize I think..

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8 Reply

Tony Gunter

Investor · Canton, GA · Member since 2014 · 727 posts · 500 votes

5y

@JD Martin

Saying it doesn’t make it so.

7 Reply

Bruce WoodruffPro Member

Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes

5y

Not October. More like November. :-)

1 Reply

Brendan Miller

Rental Property Investor · Gilbert, AZ · Member since 2020 · 210 posts · 163 votes

5y

Hasn't he made this statement numerous times already over the past several years?

26 Reply

Michael Plante

Deland, FL · Member since 2017 · 2k+ posts · 1k+ votes

5y

Well if Robert says it

then it is true

😂

3 Reply

Bruce WoodruffPro Member

Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes

5y

Originally posted by @Brendan Miller:

Hasn't he made this statement numerous times already over the past several years?

Yes, but he will be right sooner or later......

10 Reply

Justin Thorpe

Member since 2020 · 437 posts · 675 votes

5y

@JD Martin

Like a broken clock is right twice a day! RK has called for a cash 54 times in the last 10 years. This video is only interesting because the anchor is attractive. Outside of that Kiyosaki continues to spew BS that makes the pros laugh at him like they always do. But that said Kiyosaki has a huge following among the young, broke and the naive. People who will pay their hard earned money for his books and lectures. I won’t be surprised if he is coming out with another book and this is part of the promo. But hey as long as there is widespread financial illiteracy in the world, guys like Kiyosaki will continue to prosper and amass wealth.

8 Reply

Mike Dymski

Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes

5y

He's not predicting a recession (for the past ten years)...he's just doing his job, which is marketing and selling books and courses (and investing the proceeds in real estate). He gets free interviews and commercials (like this video and BP post) (and free crest white strips).

25 Reply

Chris John

Member since 2020 · 671 posts · 937 votes

5y

@Justin Thorpe

"But that said Kiyosaki has a huge following among the young, broke and the naive."

You couldn't be more wrong!!! I'm not young.

7 Reply

Justin Thorpe

Member since 2020 · 437 posts · 675 votes

5y

@Chris John

Lol ! Ok! Remember you are now the youngest that you will ever be. So enjoy the “youth” :). Btw, Kiyosaki is just looking to sell another book or a course. That’s the bottomline. If uncle Robert was so awesome and stock picking, asset picking and predicting markets, he would be running the worlds most successful hedge fund and making all his money from investments. The hard fact is uncle Robert makes all his money from selling books, videos and courses. Simple!

5 Reply

Chris John

Member since 2020 · 671 posts · 937 votes

5y

@Justin Thorpe

I do think about this being the youngest I'll ever be on occasion, but it just makes me feel bad, not better! haha.

I definitely hear you. I did like "Rich Dad, Poor Dad", "On the Road with Robert Kiyosaki", and the "Cashflow" board game. I felt like they helped me gain confidence and cultivate strategies I'm not sure I would've thought of on my own. Having said that, I don't exactly follow Kiyosaki in general (although I did catch the 500th podcast) and can't imagine going to one of his seminars.

1 Reply

Muiris F.

Investor · Member since 2019 · 3 posts · 3 votes

5y

@JD Martin Kiyosaki has predicted a crash seven times in the last 10 years and been wrong all seven times.

2 Reply

Dan Bass

Kansas City, KS · Member since 2019 · 58 posts · 66 votes

5y

@JD Martin I guess we will see if chicken little is right or not.

I’ve said before that I love his books to get base knowledge and he has awoken so many minds by them.

Since then, it’s always crash crash crash. It’s his version to stay relevant.

I compare him to Peter Schiff now and that’s sad.

We are already in a stock correction but many stocks are already over-corrected. It’s just an index correction to scare everyone IMO.

Print trillions then a crash? Idk about a crash but record printing and many people have tons of equity in their homes that they won’t need to sell as easily. Plus, the loans today are more solid.

He’s a fear doom and gloom guy now needing deals

2 Reply

James Hamling

Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes

5y

Ok, so here's the deal, Rich Dad Poor Dad is turning 25yrs old here soon, and it was absolutely amazing very true BUT in the following 24 years exactly how many amazing things has RK put out there?

And before you say Cash-Flow Quadrant etc let me stop you right there because at best those are sequels to RDPD and in truth there just follow-up additional information from RDPD.

The fact is RK is not anywhere near as amazing as we have all given him credit for, he is not. Near 25yrs ago he wrote an amazing book on the theory of investing, the THEORY not actual investing, that's key. Now, we credit him with some God like investing powers for literally anything and everything, to extent of prognosticating what will come in advanced economics yet he has a well documented failure score of about 99.999991%. By all definition of the words RK is really, in all truth and reality, a 1 hit wonder.

The true news story here is RK trying ever so desperately to become or stay relevant in any way possible, even if it means making some extreme wild predictions that are certain to result in epic failure. Note, he did not just predict a decline, he specifically states it will be the biggest collapse in the world.......

The biggest collapse in the world will be when the world reserve currency fails, which is currently the USD. There is a great many tools and tactics still readily available for powers that be to use to prevent a USD failure AND a failing USD would cause too much harm to too many of the world elite at this moment for it to be allowed, they would sooner end the NYSE than the USD, that is a fact.

So no, 0% chance of happening and it won't be until powers that be either (a) loose ability to manipulate the system, or (b) have the next new currency and "solution" all set to present to the world right after they ALLOW the collapse to begin, and at significant increase to their power and control.

This is reality, money buys power, power buys control, those in control have every focus at retaining their control forever to include whom it passes and continues through. Collapse of that control system will not be allowed, period. They will sooner tax all the people 90% or confiscate bank accounts before allowing wealth systems to fail. Not even the Nazis in burning a continent to the ground were able or willing to do such.

14 Reply

Karen MargraveBusiness Member

Moderator

Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes

5y

Since the day I joined BP there have been people predicting a crash, holding their money, waiting for the crash so they could buy at the bottom of the market. Well here we are, many, many years later, and the market didn't crash, but real estate did appreciate! Will there be another great crash? Who knows. I think certain segments of the market are already being reconfigured. We have far more people needing housing than ever before. Materials cost to build new are outrageous, and trained labor is hard to come by and expensive, land on which to develop is rare and takes a lot of time to get through entitlement process, meaning there's going to be a big demand for the homes already built for quite some time.

Another thing I see in our market is housing is so tight that there are a lot of shared housing situations. There are students, seniors, multigenerational, etc., some of it due to lack of supply and some for financial considerations.

Now in CA with the new zoning allowing for higher density we will more changes. However; just because the Governor proclaims and signs bills, doesn't mean local planning departments streamline the process making it easier to accomplish the goals set out, or consider affordability in their criteria.

6 Reply

Chad McMahan

Residential Real Estate Broker · Sedona, AZ · Member since 2017 · 751 posts · 504 votes

5y

Originally posted by @JD Martin:

Well, I guess we (collectively) are going to see how smart Robert Kiyosaki is, at least when it comes to predictions. On a news program he makes the bold prediction that real estate & the stock market are going to crash hard in October because of money velocity and money printing. The whole interview is below, but his predictions come about the 4:30 minute mark or so. The host prompts him several times for what, if anything, is the trigger for this and he demurs.

Of course, he's looking forward to it because, in his words, "I get to make a lot of money". He also advises taking most/all of your free money and putting it into gold, silver and bitcoin right now (that title is off on the video). He says it's going to be the biggest crash in world history (his words).

Now that I've grabbed you with the clickbait title :) - what do *you* think? Major RE crash in October like Kiyosaki says?

Hi JD.

I appreciate you posting this. Although many of his timing related crash predictions have been off quite a bit, the foundation behind his predictions has been spot on and thoroughly researched. I have read many economy comprehension books (past, current and future economy), because I got tired of feeling like the economy is complicated and tough to understand- it's not all that complicated once you understand it. One thing Kiyosaki is clear about- he doesn't like what's going on politically, economically, etc- but he learns the rules and understands the process, so that he can come out on top- which he does in spades. The timing predicting is the tough part, as many factors impact timing, particularly bandaid over bandaid that US administration applies- which creates a larger bubble.

Owning income producing real estate is more important than ever, when there is a crash- it will hold you up when others have financially sunk. I doubt this crash will happen this month, or even next month- but market crashes happen regularly- for a lot of reasons and it's not avoidable, only delayable. But either way- buy buy buy and get them rented out, while financing options are strong. Leverage OPM as loans will tighten up when a crash occurs. Once there is a crash, cash is king and you can make a fortune with cash leverage.

4 Reply

Jack Bobeck

Rental Property Investor · Jacksonville, FL · Member since 2008 · 784 posts · 528 votes

5y

@JD Martin

He’s calling for a crash due to the Fed tapering their buying of mortgages. Less liquidity will maybe lead to a crash, but who really knows….

1 Reply

Michael Ablan

Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes

5y

@JD Martin - I think the last election cycle put a spotlight on the fact that the news is used to manipulate us. There's no better way to get people to do what you want them to do than to scare the hell out of them. "The crash is coming!! Listen to me and you'll be saved!"

I'm personally proceeding with caution, but that still means converting cash into long term, low interest debt secured by multi-family real estate. People will always need a roof over their head and protection from the elements.

6 Reply

Scott England

Rental Property Investor · OK · Member since 2015 · 316 posts · 216 votes

5y

As a fan of RK, and being a capitalist myself, I have to admit one must maintain a healthy dose of skepticism when a capitalist lays out a strong or controversial position on a topic, then works in a product or service to sell you that coincides with that position (much like when a socialist makes the argument that centralized power, under their control, is for your own good).

Predicting a market crash the month before your book titled "The Capitalist Manifesto" drops is a bit too much for me, although it's brilliant marketing, and I don't necessarily think he's incorrect, in general.

Here's my prediction: There will be no crash in October and the book will be a success. The democrats in congress will agree on an infrastructure bill in the next 4 weeks, which RK will point to as the reason the crash didn't happen, saying money printing is a short term stimulus, but only kicks the can down the road and makes the overall problem worse.

4 Reply

Brad Jacobson

Realtor · Ogden, UT · Member since 2019 · 338 posts · 415 votes

5y

I lean towards agreeing with a few other comments already made here. RK frequently predicts crashes and beats the same drum of inflation and "worthless money." I agree with him that it will happen eventually but with rates where they are, refinances still booming, the RE market barely reaching stable prices, I think we have a ways to go. The market won't have a dramatic shift this year unless interest rates spike.

0 Reply

Ivan Terrero

Investor · Naples, FL · Member since 2016 · 256 posts · 75 votes

5y

@Brendan Miller I think he has been saying the same thing about silver for the last 8 or 10 years now?

0 Reply

Scott Hickey

Member since 2019 · 10 posts · 5 votes

5y

Robert is old news his buffet in the stock game kind of irrelevant at this point. He makes these wild claims and try’s to stay relative to what’s going on but his way out of touch. I find that these older guys are are just “smoke and mirror words” the events of war, economic crash’s and covid are done now there will always be something due to big government needing another agenda but they’re not going to let it happen this soon again.

0 Reply

David Dachtera

Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes

5y

I'm thinking something major would have to happen to impact borrower eligibility before the demand for housing could be dampened enough to produce a serious housing downtown.

True, there may well be a large number of credit-damaged housing hunters once the dust from the eviction moratoria expirations begins to settle.

There may well be a major downtown on the global financial stage. I'm not seeing anything to suggest the kind of "doom" we're getting from the major financial sooth-sayers, however. It might already be there, but I'm not seeing it, as it.

My $0.02 ...

0 Reply

Marcus Auerbach

Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes

5y

He's a one hit wonder and he keeps milking it. And he is getting more and more intense in his political views. I went through Rich Dada Education almost 15 years ago; would not recommend. Also RE does not suddenly crash, it takes months and years for the trend to change; its slow like an oil tanker, the 2008 crash was very visible in the market data 2 years prior.

I don't follow the stock market close enough to comment, but we are not going to see a RE crash any time soon, at least not in the midwest, if anything we may see things slow down at some point, which would be good - what I believe we will see (I am already seeing it in my biz) is a new wave of economic and climate related migration within the US, based on the fact that remote working is allowing people to move from fires, droughts and exuberant real estate prices to the states that are much more attractive - I am getting several calls a week now from people moving to Milwaukee, usually from the states out west, but also from down south. It's not a huge number like we see for example to FL or AZ, more like a trickle, but 5 years ago nobody moved TO Milwaukee. Or the midwest in general, so that's a fairly new trend.

Investing in infrastructure is a smart play; China has done that every time their economy slowed down, they invested in infrastructure. In the last 7 years they have poured more concrete than the US in the last 100. Better transportation infrastructure reduces cost for doing business and adds to the GDP and competitiveness of busineses using the inrastructure. So not only you create a massive economic response by building the infrastructure, it also has an afterglow for the rest of the economy after completed.

So RK will of course say that we are just kicking the can down the road, which is of course not wrong, because eventually there will be another recession - but it may not happen for a really long time.

4 Reply

Luka Milicevic

Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes

5y

Kiyosaki and Peter Schiff are in the same boat. They have correctly predicted every single market crash in history, because they are always predicting crashes.

4 Reply

Kiyosaki has spoken - October economic crash coming!

Kiyosaki has spoken - October economic crash coming!

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