America's Bubble Economy: Profit When It Pops
Part One America’s Bubble Economy
Chapter 1: Executive Summary 3
Chapter 2: Bubble Blind 37
Chapter 3: Bubblequake 67
Chapter 4: What!? You Mean We’re Not King of the World!? 105
Part Two Profit When It Pops with Alternative Investments
Chapter 5: Cashing in on Chaos 133
Chapter 6: Gold for People Who Hate Gold by Eric Janszen 181
Chapter 7: Survive and Thrive 199
Part Three The Really Big “Big Picture”
Chapter 8: The View from 30,000 Feet 217
ROBERT A. WIEDEMER, brings to the team the real-world business knowledge and investment understanding that comes from founding a NASDAQ-listed information services company. He is currently President of a business valuation firm that is the primary business valuation advisor for the U.S. Small Business Administration's Small Business Investment Company division (the largest fund of venture capital funds in the world).
CINDY SPITZER is an award-winning writer who has contributed to the Washington Post, Los Angeles Times, Chicago Tribune, Newsweek, and many other publications and books, including the original Chicken Soup for the Soul.
ERIC JANSZEN is one of the nation's leading financial bubble experts, having written extensively on the Internet bubble and developed the popular Web site, iTulip.com, which has been praised by the New York Times, BusinessWeek, National Public Radio, and CNBC. He has also been CEO of two venture-backed companies and managing director of Osborn Capital from 1998 to 2001. On his iTulip Web site, he called the top of the dot com bubble in March 2000 and recommended moving from cash to gold in 2001 when gold bottomed.
But not to panic. America's Bubble Economy has a subtitle: Profit When It Pops. Eric Janszen, one of its four authors, suggests keeping 10%-15% of your assets in gold, which he sees rising "to a peak price of $2,500 to $3,000'' an ounce. Janszen et al. also recommend eurobonds and euro-denominated exchange-traded funds, because most of Europe isn't as indebted as the U.S. and its main currency should outperform the dollar.
A former venture capitalist and founder of the financial Website iTulip, Janszen says the U.S. is repeating errors of the Nixon era, including massive government deficits, under-funded entitlements and an unpopular war the government can't fund with higher taxes or special bonds. Throw in today's growing global demand for commodities, and "... all roads still lead to inflation, whether due to energy costs, unfunded deficits or dollar-currency risks," he says.
Janszen, who was rightly skeptical of the Internet craze early-on, tells Barron's that the current stock-market bubble is "a reflection of monetary inflation" rather than future earnings. A more normal trendline, he says, would put the Dow at about half its present level, or 6,000. Now, that's something to worry about.
—Susan Witty (Barron's, November 13, 2006)
Chosen by Kiplinger’s as one of the 30 Best Business Books of 2007
Paul Farrell, Senior Columnist at Dow Jones MarketWatch said on February 12, 2008, "In short, America's Bubble Economy's prediction, though ignored, was accurate.""More roadmap than crystal ball, this book doesn’t simply advise a reader what’s coming, it tells a reader exactly how to plan and respond. That it manages to predict an awfully troubling near future while still managing to be readable and even funny in spots, is no mean feat."
—Ken Kurson, co-author with Rudy Giuliani of the No. 1 Bestseller Leadership and financial columnist at Esquire
"A sobering financial wakeup call for all Americans."
—C. Thomas McMillen, Rhodes Scholar and former three term U.S. congressman
"Whether you think it goes too far or hits a bull’s eye,
America’s Bubble Economy presents a riveting argument
for what may be coming and how to make the most of it."
—Philip J. Gross, former CFO, America Online
"Sound advice in these times, America’s Bubble
Economy delivers what we need to hear. Its prognosis may be
harsh, but these insights are astute, logical and
—Dr. Rodney Stevenson, Professor of Business, University of Wisconsin-Madison, past president of the Association for Evolutionary Economics
"Finally, a way to profit from the government’s reckless
—Jim Goldinger, Managing Director, TD Capital Ventures