Robert Kiyosaki is the author of the famous Rich Dad, Poor Dad book series. He is also a very successful investor in real estate.

Last weekend Kiyosaki appeared on the Foxnews program of Neil Cavuto. Cavuto and his correspondents  were pushing the memo that despite a few strong hurricanes in the last years, people are still eagerly buying real estate along the Atlantic/Caribbean coast. Then Cavuto turned to his guest Kiyosaki. The interview was remarkable. I almost started to write down a transcript. But to save time, I waited for the official Foxnews transcript, which is apparently not coming… So I’m reproducing from memory.
Kiyosaki admitted outright that he is scared of the situation in real estate. He even said that he would like to sell his two beach homes in Caribbean and in Hawaii, “right now“, just because he does not like worrying about his properties. Hurricanes rarely hit Hawaii, so the worry is not only about Nature’s fury.

Kiyosaki stressed that this is not the time for amateurs to be jumping in. He said that there are already too many idiots in the market asking ridiculous prices, so that few good deals are possible. He clearly implied that the real estate bubble is big. In his words:

All booms bust. And the trouble with the real estate bust is that [the] recession lasts twice as long as a stock market bust.

And then he stressed again, that this is not the time to be jumping in and going for capital gains.

On the other hand, Kiyosaki confided that he feels sexually excited when bubble busts are coming, because after them it is the best time to buy. That’s kind from Kiyosaki, since purely financially he might be more interested in making the pool of “poor dad idiots” larger. Ok sorry, Kiyosaki must be a decent man. But Cavuto seems to like that “job” of encouraging fools.

I checked the official website of Kiyosaki. He has a series of articles All Booms Bust, which confirms the same disposition towards current real estate market. Here are some snips:

… this is the biggest real estate bubble I have ever lived through … people quickly forget how bad the market was …  this time, when the bubble bursts, I think it will be a monster … Never in my life have I seen so much money being made on such weak fundamentals … the best time to get rich is after a crash … Also, I am getting rid of my U.S. dollars …

Kiyosaki is not the only one capital insider who is expecting real estate bust. For example, I saw right-wing newsletters with the titles such as After Greenspan, a Major Recession, “Greatest Real Estate Investor [Tom Barrack]: Bust Warning”, and even “Restoring the American Dream” (right, Bush presidency was not great for the American Dream…)

[Crossposted at European Tribune and Daily Kos.]

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