America's Financial Apocalypse: How to Profit from the Next Great Depression [Paperback]

Stathis (Author)

Book Description

Publication Date: November 14, 2006 | ISBN-10: 0975577654 | ISBN-13: 978-0975577653

By the early 90s, a raging bull market was delivering spectacular returns, causing some to believe that a market collapse and subsequent depression would soon appear. As a result of these fears, some exited the capital markets altogether. Thereafter, the Internet took off causing the market bubble to swell, many high-tech stocks with seemingly limitless valuations. Over the course of its 13-year stretch, the market appreciated by over 600 percent, with average annual returns in excess of 18 percent. And we all remember what happened at the start of the new millennium. Even after the deflation of the Internet bubble, cautious investors who pulled out of the market a decade earlier missed out on spectacular returns since then. Many investors who entered the market near its peak suffered devastating losses. But most who remained invested since the early 90s are still much better off today. While this correction revealed the most recent illusions embedded within the economy, it s only a small part of what will be a larger correction in the coming years. Despite the scandals in corporate America and Wall Street, many investors fail to recognize that the post-bubble period is quite different from the Bull Run in the 90s. But today, the capital markets have been realigned with authenticity, and economics now control the investment cycle rather than hype generated by Wall Street. Accordingly, Wall Street and the U.S. Government can only hide the realities of America s decline for so long. Unfortunately, America entered the free trade paradigm as a losing participant from the start. While America remains as the centerpiece for the global economy, it relies on record debt to maintain its status as the world s strongest consumer marketplace. But this cannot last much longer. America s vulnerable role in the new economy threatens to erode the strength of its empire. Already, America has witnessed a gradual disappearance of its core citizens; the middle class. As well, poverty continues to grow while America s wealthiest quintile increases their wealth. These trends have been masked by record levels of credit-based spending and manipulation of economic data. For over two decades, several nations have benefited at the expense of America s job base and living standards. This led to a long period of excessive consumption relative to productivity. When the economic boom from the post-war period began to lose steam in the 60s, consumption began to exceed productivity, as Americans refused to acknowledge a decline in living standards. Up until the 70s, America fueled this consumption-production disparity using the surplus wealth generated during the post-war boom. During the 80s, America s growing consumption was compounded by massive government spending and a devastating oil crisis. Shortly thereafter, the consumer credit industry grew to meet the demands of a nation experiencing large productivity deficits. And today, America is vastly different than the post-war period. Rather than increases in net wealth, America s growth over the past two decades has been fueled by credit spending which has created the illusion of impressive productivity, while serving to mask declining living standards. As a consequence of these changes, America s financial industry is now one of its biggest and most profitable. Today, America is more dependent on foreign nations than anytime in its history. Declining oil reserves and a foreign-funded credit bubble have positioned the fate of this nation in the hands of the world. Soon, America will face the economic burden of 76 million aging boomers. Beginning in 2011, mandatory expenditures for Medicare, Medicaid and Social Security will start to grow rapidly. By 2025, these expenses will have swelled to unthinkable levels.

Editorial Reviews

Review

"A chilling but accurate expose of how we came to be in such economic peril as a capitalist nation" In writing "America's Financial Apocalypse: How To Profit From The Next Great Depression", the author draws upon his many years of experience and expertise as a business, financial, and investment consultant for two of Wall Street's largest investment firms and elsewhere in private financial markets. Strathis provides an impressively analytical explanation as to how the liberals on the left and the conservatives on the right are working in differing ways to destroy America's fiscal and economic well-being; how the federal government in Washington is dominated by corporations; how China has taken total advantage of America's trading policies to our nation's detriment. Readers will be shocked to learn how America is legally bankrupt; how today the 'American Dream' cannot be achieved by most American citizens; the truth concerning the future of Social Security; the inevitable and looming consequences of the present pension plan crisis; and why most Americans working today will not be able to retire as their parent were able to in the past. "America's Financial Apocalypse" also addresses just how the American government manipulates economic data; how the Bush administration is responsible for the worst economic recovery in American financial history; how the real estate bubble could cause the stock and bond markets to collapse; how America's political and economic fate is in the hands of foreign countries; why the American government is really allied to the Saudi Arabians despite the established identities of the 9/11 attack; the looming global oil crisis; Alan Greenspans dismal performance as a Fed Chairman; the plummeting value of the dollar in the international currency markets; and the continuing rise in value of precious metals and oil. After laying out all of these 'inconvenient truths' about America's economic future, Strathis also lays out how the wise and savvy investor can still profit from an inevitable depression that will collapse America's economy in the very near future. A chilling but accurate expose of how we came to be in such economic peril as a capitalist nation, "America's Financial Apocalypse" is especially recommended reading for its clear and methodical explanation of just how the individual investor can survive what will prove to be the 'Next Great Depression'. --Midwest Book Review

About the Author

Mr. Stathis applies his expertise in finance and healthcare as a business consultant with a focus on early-stage high technology companies. He also provides consulting services to venture capital firms, hedge funds and money managers. He previously worked for several years at two of Wall Street s largest and most prestigious investment firms. In his spare time, he continues to remain active in the public markets as an investment strategist and research analyst for a successful investment newsletter. Prior to his career in finance, he was involved in research projects ranging from alternative energy systems, material science, solid-state chemistry, and human disease. He is a member of the New York Academy of Sciences and formerly a National Science Foundation Research Fellow. He received an M.S. in biological chemistry in addition to several years of graduate level coursework in the biosciences.

Product Details

• Paperback: 484 pages
• Publisher: AVA Publishing (November 14, 2006)
• Language: English
• ISBN-10: 0975577654
• ISBN-13: 978-0975577653
• Product Dimensions: 7 x 10 x 1 inches
• Shipping Weight: 1.7 pounds (View shipping rates and policies)
• Average Customer Review: 4.7 out of 5 stars  See all reviews (22 customer reviews)
• Amazon Best Sellers Rank: #955,293 in Books (See Top 100 in Books)

Customer Reviews

Most Helpful Customer Reviews

92 of 101 people found the following review helpful:

3.0 out of 5 stars Riddled with inaccuracies, July 29, 2007

By 

Eugene (San Diego, US, Canada) - See all my reviews
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This review is from: America's Financial Apocalypse: How to Profit from the Next Great Depression (Paperback)

This book manages to cover all major problems faced by the United States in the next 20-30 years - trade deficit, healthcare crisis, education crisis, etc. - and it does so in a fairly comprehensive way, with large numbers of facts and graphs.

The reason why I can't give it more than 3 stars for this achievement is that the number of mistakes it contains (from misspellings to factual errors) is absolutely incredible. It seems that no one (other than the author) so much as read the book before it went to the printing press.

First of all, there are spelling errors. English is not my native language, yet I've been able to notice one spelling error every 20-30 pages. "Notices in-lue of gold" (p.2). "Right to bare arms" (p.25). "America will loose its technology edge" (p.61), and so on. There are factual errors as well. According to the author, Statue of Liberty was erected on Ellis Island (p.27), Berlin Wall fell "a few years" after 1991 (p.10), and Albert Einstein immigrated into the United States in 1940. He thinks that women who give birth after entering the United States illegally are guaranteed citizenship because their newborns become U.S. citizens (p.32) - but he either does not know or fails to mention that they have to wait for their child to turn 18 before they even have a shot at legalization. He frequently claims (or implies) that Chinese goods are cheaper because Chinese government and Chinese companies do not provide healthcare or retirement benefits to their workers (p.41), when in fact they do. All these problems make me wary of any other claims he makes in his book.

There are many interesting graphs and charts in the book, but at least some of them were "cooked up" by the author from third-party data, so they are not always reliable. One rather puzzling chart is located on p. 113. It is a pie-chart labelled "Factors Driving Rising Costs in Healthcare (2001-2002, in $ billions)". However, pieces of the pie are labelled with percentage values and clearly add up to 100% (e.g. "Increased Consumer Demand, 15%"). Author comments, "Someone explain to me the economics of increased consumer demand leading to a 15% increase in healthcare costs in one year". It's clear that he has no idea what's really shown on the chart.

The book is heavy on portrayal of various weaknesses in modern U.S. economy, but rather light on attempts to predict the future. There is almost no discussion about the impact of American crisis on the rest of the world. Author predicts major revaluation of the dollar, but does not provide any macroeconomic analysis of consequences of this revaluation. He seems to think that collapse will not occur at least until 2012, but he's not very clear why he thinks it won't be triggered by deflation of the real estate bubble.

Overall this is an interesting and comprehensive book that's worth reading for anyone who thinks that U.S. economy is doing well, but it's not scientific or reliable enough to be of real value for an investor.

I recommend "Dollar Crisis" as a complementary treatment of the U.S trade deficit / credit bubble problem.

33 of 34 people found the following review helpful:

5.0 out of 5 stars The Only Book To Get on America's Economy and Major Problems Ahead, January 20, 2007

By 

D.J. - See all my reviews

This review is from: America's Financial Apocalypse: How to Profit from the Next Great Depression (Paperback)

A few days ago, after having heard Bernanke's speech about America's imminent financial crisis related to Medicare, Medicaid, and Social Security, as well as the hint that America might allow illegal immigrants to become citizens as one way to help pay for these financial liabilities, I could not help but think of this book, which had already alerted me to these issues. What people who have not read this book do not realize is that Bernanke's speech was no news.

As a matter of fact, the author states that the forecasts by the Congressional Budget Office are way too conservative and could be as low as 50% understated. What Bernanke failed to mention also was that the interest on the national debt is also adding to the gov expenditures and will soar over the next two decades. If Bush's privitization plan goes throuh and his tax cuts are made pernanent, the percentage of GDP spent on all of the above could approach 50% in a few decades.

The present value of the liabilities for Medicare, Medicaid and SS are $51-$72 TRILLION.

This is just one of hundreds of issues detailed in the spectacular book. If you really like to get into a book for its data and analysis, you'll love this book. If you like a simple generic read this book is not for you. But if you want much better knowledge and understanding about the real issues America faces than the media and politicians, this book is all you need.

The best thing about the book is that he explains things from a basic level and then leads you into a detailed analysis. I have already read the book three times and each time I learned more. This is a book I plan to keep for a very long time.

54 of 59 people found the following review helpful:

5.0 out of 5 stars Good, but some errors, January 15, 2007

By 

S. Voetsch (Charlotte, NC) - See all my reviews
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Amazon Verified Purchase

This review is from: America's Financial Apocalypse: How to Profit from the Next Great Depression (Paperback)

I read this book after previously digesting much information regarding America's (and the world's) financial and energy situation. He does have many facts and figures. However I noticed that on at least 2 graphs he refers to in his writings, he interprets them differently in the text than the caption of the graph does. Also there are a few spelling errors throughout the book. It does make me wonder about the overall quality of his information.

As to the energy situation, the author seems to think that by 2020, we will be able to replace the oil and oil products that are lost due to oil depletion--totally ignoring the problems of scalability, EROEI and the fact we will not have $$ available to develop alternate energy sources!

He recognizes Peak Oil, but fails to analyze that subject in any depth. For example, he takes the USGS and IEA figures for oil reserves in the mid-east as gospel, failing to note the doubling of these same reserves in the 1980's without any significant new discoveries being made! Our country will not be back on it's feet 10-15 years after worldwide oil production peaks as he seems to imply it will.

He also makes note that there is no worry with regards to Natural Gas in America, when in fact it has been confirmed North American natural gas production has peaked in the early 2000's! And natural gas depletion can be very steep! Since natural gas is less fungible than oil this creates an IMMINENT problem for America which he seems to dismiss.

He does seem right on about the coming generational crisis. I am a bit concerned as early in the book he seems to take aim at Latino and Asian immigrants. He chides them for failing to integrate to society and being somewhat of a drag on society. Yes, some ethnic groups do keep somewhat to themselves, but he fails to note that Asians have the highest income level of any ethnic (including white) group in America! Hardly a drag on society!

These criticisms aside, overall it does point out the problems America will be facing in the next decades. I have found most books of this type ignore one or more of the major problems we face. You can get a lot of good information here.