Having enjoyed the first Aftershock book, I am looking forward to its sequel. The authors, David and Robert Wiedemer with Cindy Spitzer, state there’s an extra chapter in the sequel that could not be included in their first book.
Here’s an excerpt from my upcoming book that refers to their Aftershock book:
Wiedemer and co-authors list six bubbles: The real estate bubble; the stock market bubble; the private debt bubble; the discretionary spending bubble; the developing dollar bubble; and the government debt bubble.
The latter two are, according to the authors, yet to fully develop while the first four are not over their downward adjustments. (Their last book was published in 2010.)
These three analysts wrote America’s Bubble Economy, published in 2006, which accurately predicted the popping of the housing bubble, the collapse of the private debt bubble, the fall of the stock market bubble, and the decline of consumer spending.
In that time, the great majority of the experts were saying “all is well, stocks will rise.” …
Wiedemer’s accurate prediction of an economic downsizing (the worst since the Great Depression of the 1930s) came not because of luck nor because of a perpetual bearish outlook; rather it came through seeing the fundamental underlying patterns.
The authors make a very important point about the difference between an economic bubble and fundamentals, which rest on solid ground.
They said the “facts on the ground did not match the bubbles in the sky. Highflying asset growth that is not firmly anchored to an underlying real economic driver is not sustainable.”
What do you think about all these economic bubbles? What are you doing to prepare for the ones these authors, and other economists, are forecasting? Share your ideas with us here for others to benefit. Thank you.
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