Financial Reckoning Day: Surviving the Soft Depression of the 21st Century

Author: William Bonner, Addison Wiggin
List Price: $27.95
Our Price: Click to see the latest and low price
ISBN: 0471449733
Publisher: John Wiley & Sons (12 September, 2003)
Sales Rank: 3,321
Average Customer Rating: 3.5 out of 5

Customer Reviews

Rating: 3 out of 5
No new info for those who are already Bears/Austrians
The authors write a free daily commentary called The Daily Reckoning (www.dailyreckoning.com) which rounds up todays financial news from the perspective of Ludwig von Mises Austrian School of economics theory. This book is more of the same. If you are already a "bear" who reads either DailyReckoning.com, PrudentBear.com, LewRockwell.com, or FinancialSense.com, you won't learn anything "new" from this book.

It does give a good bit of info on financial history, particularly in regards to how the current U.S. situation compares to previous "bubble" economies, such as Japan's in the 1990's, the US in the 30's, and going back to the South Sea Bubble and the Mississippi Scheme. But again, if you're already familiar with the functions of bubbles, you already know that the U.S. is completely following that historical pattern.

The most interesting info in this volume is the comparison of the U.S. to Japan in the 1980's/90's. Now THERE I learned something, but it can be summarized in three sentences: The U.S. has, for the last 12 years, followed almost exactly in the Japanese footsteps. In almost all categories of financial and demographic events, we are exactly 10 years behind Japan, Inc. Which means we've got a really tough 10 years ahead of us with an incredible bear market.

Another interesting section of the book is the indictment of Alan Greenspan (aka, "The Devil") and his disasterous policies, who us bears consider a "serial bubble blower" who will one day be credited for destroying our economy instead of saving it. Turns out Greenspan was once a disciple of Ayn Rand and he has long believed in a currency based on gold instead of thin air. Too bad he doesn't practice what he believes in. But, again, I read about this truth of Greenspan on various bear web sites before I read this book.

The authors aren't terribly good writers, unfortunately... the "one star" reviewer elsewhere here has that right. But the message they have to tell does need to be told (to those who don't already know it.)

Even for those new to the Austrian "hands off the market economy" school of economics, this wouldn't be the book I'd start with. Consider "Economics for Real People" by Gene Callahan instead. And, for an introduction to why we're heading into a soft depression, consider Robert Prechter's "Conquer the Crash."

My last criticism of this book is the title, "Surviving the Soft Depression of the 21st Century." The authors actually don't give you any tips at all for surviving the next 10 years, save for one: "Buy Gold." So, those words shouldn't even be part of the title, frankly.

My advice: Skip this book, visit the Web sites I've mentioned and read the articles there (including the author's), and BUY GOLD NOW.


Rating: 5 out of 5
Heads Up
Using historical examples and perspective, Bonner explains why the U.S. dollar will eventually become worth less, potentially a lot less. He points out some stunningly simple things, like how 3% annual inflation (caused by printing money) results in a 50% reduction in buying power over a 14 year period. Buy the book. Its a quick read and is pretty engaging.


Rating: 5 out of 5
Great History Book, Slim on advice
I really enjoyed reading the "history" and "Political Science" aspects of this book. Unfortunately, I was emotionally damaged when the author added no valuable conclusions on where things are going and what to do about it. Now I am kidding about the emotionally damaged part, but was disappointed with the lack of conclusion. Lastly, I would *highly* suggest this book for anyone wanting a deep understand of "why we are where we are" and why the future is going downhill. If you are expecting a "what to do book", this is not it.
1929-1946 - 17 year BEAR market
1946-1965 - 19 year BULL market
1965-1982 - 17 year BEAR market
1982-2000 - 18 year BULL market
2000-2017? - 17 year BEAR market?

Cheers,

Brian

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