You are previewing Aftershock: Protect Yourself and Profit in the Next Global Financial Meltdown, 3rd Edition.
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Aftershock: Protect Yourself and Profit in the Next Global Financial Meltdown, 3rd Edition

Book Description

From the authors who accurately predicted the bursting of the global bubble economy comes the definitive look at what lies ahead in 2013 and beyond

Written by the market oracles who predicted, with uncanny accuracy, the global financial meltdown and the economic chain reaction it set in motion, Aftershock offers a vivid picture of what to expect when the world's bubble economy inevitably pops. More importantly, it tells you how to protect your assets before and during the coming Aftershock and how to capitalize on the new opportunities that others will miss.

Building on the valuable insights and proven predictions of their previous books, the authors of Aftershock, Third Edition offer their latest thinking and advice as the economy moves even closer to the coming aftershock.

  • Explains why and how 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 recession around the globe

  • Updated to include the latest developments, such as new coverage of monetary stimulus and a more global focus (with special attention to Europe and China)

  • Offers new actionable insights about protection and profits in an increasingly confusing investment environment

  • Table of Contents

    1. Cover Page
    2. Title Page
    3. Copyright
    4. Contents
    5. Executive Summary
      1. What Is a Bubble?
      2. What Is a Bubble Economy?
      3. What Is the Aftershock?
    6. Acknowledgments
    7. Preface to the Third Edition of Aftershock
    8. Introduction: Your Guide to the Third Edition of Aftershock
    9. PART I: THE COMING AFTERSHOCK
      1. CHAPTER 1: This Recovery Is 100 Percent Fake
        1. Isn't a Fake Recovery Better than No Recovery at All?
        2. If the Aftershock Has Not Been Canceled, Why Hasn't It Happened Yet?
        3. Still Not Sure This Recovery Is 100 Percent Fake?
        4. Don't Believe the Stimulus Has to Eventually End? There Is a Limit to What the Government Can Do
        5. Wondering Why the Aftershock Hasn't Happened Already? “Animal Spirits” Are Keeping Us Going
        6. Please Prepare Now
      2. CHAPTER 2: America's Bubble Economy
        1. Because Our Earlier Books Were Right, Now You Can Be Right, Too
        2. Didn't Other Bearish Analysts Get It Right, Too?
        3. How the “Experts” Got It So Wrong
        4. Predictions from Ben Bernanke and Henry Paulson—We Trust These Officials with Our Economy
        5. Where We Have Been Wrong
      3. CHAPTER 3: Phase 1: The Bubbles Begin to Burst
        1. Bubbles “R” Us: A Quick Review of America's Bubble Economy
        2. From Boom to Bust: The Virtuous Upward Spiral Becomes a Vicious Downward Spiral
        3. Pop Goes the Real Estate Bubble
        4. Pop Goes the Stock Market Bubble
        5. Pop Goes the Private Debt Bubble
        6. Pop Goes the Discretionary Spending Bubble
        7. The Biggest, Baddest, Bad Loan of Them All
      4. CHAPTER 4: The Market Cliff
        1. The Market Cliff Won't Be Just a “Down Cycle”
        2. Hitting the Market Cliff
        3. The Last Resort: A Stock Market Holiday
        4. When Is the Best Time to Get Out of the Stock Market?
      5. CHAPTER 5: Massive Money Printing Will Eventually Cause Dangerous Inflation—So Why Hasn't It Happened Yet?
        1. What Is Inflation?
        2. What Exactly Is Money Printing?
        3. How Does Money Printing Cause Inflation?
        4. Central Banks Gone Wild: The World Is Printing Money
        5. Where Is Inflation Hiding?
        6. 1. “Lag Factors” Delay the Onset of Inflation
        7. 2. Government Statistics Underreport Inflation
        8. 3. Strong Motivation to Maintain the Bubble Economy Will Delay Most Inflation Until after the Market Cliff
        9. The Arguments against Future Inflation Simply Don't Hold Up
        10. This Is Not a Plan, It's a Panic!
        11. The Real Problem with Rising Future Inflation: High Interest Rates
        12. 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)
        13. When Will Inflation Begin? When Group Psychology Turns Negative after the Market Cliff
        14. The Inflation Deniers Are Liars!
      6. CHAPTER 6: Phase 2: The Aftershock
        1. The Dollar Bubble: Hard to See without Bubble-Vision Glasses
        2. The Government Debt Bubble Pops
        3. The Aftershock
        4. The Six Psychological Stages of Denial
        5. Is There Any Scenario for a Soft Landing?
      7. CHAPTER 7: Global Mega-Money Meltdown
        1. The United States Will Suffer the Least
        2. Think of the World's Bubble Economy in Two Categories: Manufacturing and Resource Extraction
        3. How the Bursting Bubbles Will Impact the World
        4. If the World's Bubble Economy Is Hit Harder than the U.S. Bubble Economy, Won't That Be Good for the Dollar?
        5. If the Rest of the World Is Collapsing, Won't That Be Good for Gold?
        6. International Investment Recommendations
    10. PART II: AFTERSHOCK DANGERS AND PROFITS
      1. CHAPTER 8: Covering Your Assets
        1. The Three Rules for Not Losing Money
        2. These Rules Are Simple but Not Easy!
        3. Long Term versus Short Term
        4. Rule 1: Exit Stocks Well Before the Market Cliff
        5. Rule 2: Stay Away from Real Estate Until after All the Bubbles Pop
        6. Rule 3: Avoid Bonds and Most Fixed-Rate Investments as Interest Rates Rise
        7. Where's the Best Place to Stash Cash?
        8. How Long Must We Follow These Three Rules?
        9. Letting Go Is Hard to Do
        10. What Else Can I Do to Protect Myself?
        11. Remember, Your Net Worth Is Not Your Self-Worth
      2. CHAPTER 9: Cashing In on Chaos
        1. Plenty of Profit Opportunities, but They Will Feel Quite Uncomfortable, Even Scary at Times
        2. This Economy Is Evolving; Your Investments Should Evolve, Too
        3. Three Goals of an Evolving Aftershock Investment Portfolio
        4. Reducing Risk with a New Kind of Diversification
        5. Timing Is Everything before the Bubbles Pop, but It Won't Be Perfect
        6. Aftershock Investing after the Bubbles Pop: Gold, Foreign Currencies, and Foreign Bonds
        7. Putting It All Together: Aftershock in Action
      3. CHAPTER 10: Aftershock Jobs and Businesses
        1. The Rising Bubble Economy Created Huge Job Growth; Now the Falling Bubble Economy Means Fewer Jobs
        2. Conventional Wisdom about Future Job Growth Is Based on Faith that the Future Will Be Like the Past
        3. Why Conventional Wisdom on Jobs Is Wrong
        4. What's a Savvy Aftershock Investor to Do?
        5. The Falling Bubbles Will Have Varying Impacts on Three Broad Economic Sectors
        6. Should I Go to College?
        7. Opportunities after the Bubbles Pop: Cashing In on Distressed Assets
        8. Dig Your Well before You Are Thirsty
      4. CHAPTER 11: Understanding Our Problems Is the First Step Toward Solving Our problems
        1. If You Don't Understand Why an Economy Grows, You Can't Understand Why It Doesn't Grow
        2. You Need to See the Big Picture before You Start to Focus
        3. Key Breakthroughs in the History of Economic Thought
        4. Economics Needs a Breakthrough Big-Picture Idea like Geology Needed Continental Drift
        5. So Why Aren't We Getting an Alfred Wegener or a Breakthrough Idea like Continental Drift?
        6. Economists Have Become Academia's Version of Financial Cheerleaders
        7. The Demands to Get Tenure and the Rewards of the Good Life after Tenure Have Delivered a One-Two Punch to Creative Economic Thought
        8. Where to Now? Answer: Economics Needs to Move from Being a Collection of Competing Philosophies to Being a Unified Science
        9. Four Key Elements for Making Economics More of a Science
        10. Where Do We Stand Today in Making This Transition?
        11. The Economics Profession Does Not Want to Make This Transition
        12. The Solution to the Lack of Interest in Making Important Changes in Economics: The Coming Aftershock
      5. CHAPTER 12: Our Predictions Have Been Mostly Accurate, So Why Do Some People Still Dislike Them?
        1. It's Not a Cheerleading Book
        2. It's Not a Complex Book (Although It Is Based on Complex Analysis)
        3. It's Not a Crazy Book
        4. It's Not an Academic Book
        5. It's Not Suggesting Armageddon
        6. It's Not a Reality-Denying Book
        7. Us versus the Comforters: How Aftershock Stacks Up against Other Bearish Books
    11. Epilogue: Say Good-Bye to the Age of Excess
    12. Appendix: Are the Bond, Stock, and Gold Markets Manipulated?
      1. Bond Market Manipulation
      2. Stock Market Manipulation
      3. Gold Market Manipulation
      4. Market Manipulation Summary
      5. Investment Impact
    13. Bibliography
    14. Index