Customer Reviews

Crash Proof 2.0: How to Profit From the Economic Collapse

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First a little disclaimer; as a college instructor and writer, I read a lot of business books. Frankly, I wasn't much a Peter Schiff fan and it would be fair to say he still tends to annoy me especially when he gets "hyper" like on an interview I just heard this morn via Financial Sense Newshour. Having said that, over the years I've done a major turn-around on my opinion about Schiff. Like many others, I initially would run across an interview here or there which seemed like he was excessively negative yet despite a bit of timing difference, the guy always made a lot of sense even while the likes of some so called financial guru's found on major media outlets were spouting stuff anyone with half a brain could see was downright detrimental to the average small time investor.

The likes of Schiff, Ron Paul, Nouriel Roubini, the Agora Group and others not only continue to make a great deal of sense but time is showing a growing crisis. This book has been updated to reflect many of the changes which have taken place since the writing of the first book plus added fairly substantial amounts of new research/content of interest.

The content is reader friendly, easy to understand and conversational in style. A brief history and overview is provided for those new to the discussion while those with more familiarity will still appreciate the updated statistics etc... Data is provided to support assertions including a few charts etc but are helpful not complex. Schiff provides a very solid explanation on where he stands with inflation and why including his definition of inflation. For those more versed in the ongoing debate - inflation vs deflation remains a sticking point among many investors. For the average American this is not a minor consideration when it comes to deciding what to do with your investment dollar, debt or money in general. Schiff tackles what he considered the "bogus deflation threat" head-on...an essential consdieration for every investor. Whether you agree or disagree - it is certainly worthy to review the rationale with a "what if" attitude before making a final decision as to your financial future.

Peter Schiff goes on to discuss various investments and risk(s) as well as provide an update of where we are in the predicted cycle. Closely coupled with this is a frank and fairly harsh overview of the current economic policy being put into place by D.C. combined with the status of consumer debt, corporate status etc...it does not paint a pretty picture or leaves much room for optimism but goes on to tackle specific investments including....
- TIPS (the problems)
- Currency Exchange
- Mutual Funds
-ADR's
- Cash Accounts
-Precious Metals
-Much more

Bottom Line - a worthy read for new investors, good updates for those that have read the first version. Whether you agree or not, Schiff presents important considerations every investor will want to keep in mind and does so in an easy to read method.

Last year when the stock market crashed and a lot of my retirement funds evaporated, I was totally caught off guard. In my research to discover what was really going on, who to trust, and who could explain it, I discovered Peter Schiff and read Cash Proof. Now, I'm not one easily convinced and don't make changes easily. But this book opened my eyes. I've spent the last year contemplating this, researching history, and listening to Peter Schiff (and those that disagree with him). But, I always come back to this book, because it seems to just make common sense. Important point--the original version was written BEFORE the stock market crash of 2008. It was warning of what was to come. Many books out now trying to explain, were written after the fact. That's why I was more interested in this update, than anything else out there now. He has been steadfast in his beliefs. He is confident, but is honest enough to admit when he is not sure or short term events surprised him. This book compelled me to change my investment strategies and I continue to do so while there is still time.

Just remember that this book was written in 2006/2007 and the 2009 updates are at the end of each chapter.

This country may have gone past the point of no return. I don't know and pray not. But, if there is any hope, I think it will be because people like Peter Schiff understand and speak the truth and get through to our leaders. But that will be a tough job. Most of them don't want to deal with the truth.

I absolutely love Peter Schiff. He's astute, sound financial mind, and always right on. "Crash Proof" was written before the crash and Peter had explained exactly how the bubble was blowing up and how it was inevitably was going to burst, which it did. The updated version brings us into the modern age of disgusting deficits, unacceptable government spending, and horrendous regulation into the free market. Schiff predicts that government isn't making things better with all this additional spending and intrusion into the market and that we're not out of the woods--as some people are claiming--and that it's actually making things worse. He concludes with his solid foreign currency assets and commodities-centered investment strategies that will help you avoid the next crash (and the coming collapse of the dollar). If you had taken his advice in 2006, you'd be much better off today. Just imagine how things will be in another three years! Also recommended in this time of financial tumult are Surviving the Second Great Depression: How to Take Advantage of the Government That Is Trying to Take Advantage of You for some unconventional investment techniques and The Ultimate Depression Survival Guide: Protect Your Savings, Boost Your Income, and Grow Wealthy Even in the Worst of Times.

Crash Proof is a rather frightening and, if correct, important book. I am a fan of Austrian economics and I followed and agreed with many of Schiff's points in the book. I intend to take much of his financial advice to heart.

However, there were several things in the book that could use improvement. I would have liked more detailed documentation of many of the facts Schiff presented. For example, Schiff states repeatedly that we have replaced "high-paying manufacturing" jobs with "low-paying service sector" jobs. I don't know how much of that is generalization and how much can be supported with hard data. Schiff uses too many generalizations and his analogies are not always on target. Also, Schiff's fixation with manufacturing as the basis of a healthy economy seems oddly protectionistic. No other classical or Austrian economist I have read has expressed such a concern.

As I read, for the most part I could give Schiff the benefit of the doubt. He didn't explain things as well as I would have liked, but I usually understood what he meant. Most other economists of this school will tell you that trade deficits are self-correcting. As other trading nations accumulate dollars and ship us goods, the value of the dollar with respect to other currencies will fall, causing their goods to become more expensive, and our goods to become cheaper to them. One of Schiff's theses is that this hasn't been happening because our trading partners have been using the dollars to buy up our debt instead of the relatively few trade goods we have to sell to them. Eventually, this must stop, then we will see a huge devaluation of the dollar. Will it happen? We will see.

I for one am convinced that there is a huge bubble in the US dollar. Whether it is due to huge trade deficits, unbridled consumer debt, or the trillion dollar debt happy US congress, we are inflating our currency. It's like a crack addict trying to break the habit by increasing the amount and frequency of his fixes.

PG

I pre-ordered this book expecting it to be new text.

It's not.

This book is exactly the same as the original Crash Proof, with an addendum at the end of each chapter. They're usually 6-12 pages each. The updates talk about how his predictions played out and why things are going to get worse. It's well-written and great information, but it's not anything new beyond the first book plus what you can read on any Austrian Economist's web blog. Peter Schiff writes weekly commentary on his own web site ([...]), so that will always have the most up-to-date additions to the original book, not this.

I don't regret the purchase since I'll be lending this book to many friends, but I was expecting a lot more. The original book is incredible, so if you haven't read that yet, definitely get this. Schiff explains the economy in simpler yet more accurate terms that I've read from any other economist.

I was never that interested in economics in school, but like so many people when I saw the value of my home and investments plummet in the fall of 2008 I decided I needed to be better informed. As I searched for insight, I was frankly amazed that there was so little consensus in the field that the experts couldn't even agree on the most basic elements of what happened during the Great Depression decades later! (The old joke is "If you lined up all the economists in the world end to end, every one would be pointing in a different direction!")

While most economists quickly begin introducing theories that just don't seem intuitive, I found the Austrian school, which Peter Schiff follows, resonated with my gut senses. It is not the most popular viewpoint, but I think this is because it runs counter to political desires to be able to control the economy - and to justify "printing money" to pay for programs popular with voters.

In addition to an understanding of macroeconomic trends, I think it's crucial to have real-world experience both with Wall Street, and in running a business to complete the story, and this is where Peter Schiff has a great combination of experience. But even beyond this, whereas there had to be thousands of insiders who could see the 2008 crisis coming, it was Peter that made it his mission to deliver the message in every way he could, to anybody who would listen. I read the first version of Crash Proof as the crisis began to unfold, and it was chilling in its insight and accuracy - he had predicted what was to come more succinctly than others writing *after* the events had occurred. Since that time I've been a regular follower of Peter via his weekly podcasts, video blogs, and television appearances. Even though his predictions are dire I sleep better in the belief that someone understands what is going on (not to mention putting my portfolio back on track with very strong growth!)

Peter has kept the excellent text of his original work intact in the 2.0 version, and added commentary on what has happened since the original publication at the end of each chapter. This is an effective format, demonstrating the accuracy of the initial predictions as well as confirming that recent monetary and fiscal policies continue to drive the economy downward.

I don't know whether everything will continue to play out per Peter's predictions, but his investment advice is sound whether or not the worst comes to pass: invest in solid companies in a variety of countries that pay good dividends and don't rely on US customers. Indeed, many of my other investment advice sources have started to promote similar ideas, though of course they've already missed out on quite spectacular growth from the first part of this year. Buy this book and begin to understand how government policies impact prosperity now and for future generations, and protect your wealth in the process.

I just picked up my copy of Crash Proof 2.0.
I read the first edition a few years ago, and all of that material is included in this one, but Peter also adds over 80 pages of new information. I recommend picking this up and passing it along to friends.

I am a client of Peters' and while my account was down significantly in 2008, my account is now up a whooping 20% overall as of September 2009, thanks to reading Crash Proof 1.0, and getting on-board in-time. So the argument that Peter lost his clients' funds is propaganda of the Keynesian delusionists.

While Peter describes in detail what eventually played out almost exactly according to his plan, it's not his foresight that is most impressive here, but rather the common sense arguments without any of the typical economic mathematics that one would find in Keynesian writings. This is the biggest strength of the book: his arguments just make sense, and are written in a language that is easily digested, while at the same time not over-simplistic. Unfortunately a lot of folks comment on the book and his opinions without ever trying to understand in detail, or even read what he is trying to say here.

Upon cursery review, the views expressed in the book could be construed as counter-patriotic, but when you dig deeper you understand that his arguments are actually highly patriotic:

* He wants to stop us from getting deeper into debt with the Chinese and other foreigners, since this debt will eventually have to be repaid with interest, through hyper-inflation, or through ultra-high taxation. This is especially so since the US economy has abandoned real productivity in favor of a service economy.
* He wants to help us in safekeeping our money (using Gold, foreign assetts, etc) as the government creates massive inflation and dilutes the value of the dollar, so that these funds can come back at a later time to be invested here when the US desparetely will need investments to rebuild the economy
* He strives to explain what has happened to the economy (this part was written at a time when most of the economic disaster of 2008 was still more than a year away from actually happening)
* He explains why savings are needed to create wealth, and why debt and/or stimulus cannot create real wealth
* He discusses how the short-term investment fluctuations that the pundits so closely follow are really not that important as long as stocks generate dividends, and one follows a long-term strategy (holding stocks for 5 years or even beyond ones' own lifetime to be given to ones' children)

Many of the views discussed in the book are counter-intuitive to folks used to the here-and-now attitude that most americans live by. But as history has shown, getting yourself into debt up to your eyeballs (to quote Peter), maxing-out your credit cards to keep up with the Jonases' just doesn't make sense, and Peter explains how this hedonistic lifestyle is a large reason why we are in the economic situation we are in now.

In the book, Peter strives to show us how to avoid living above our means, and more importantly, if we dilligently created a nest-egg, how to protect this nest-egg and how to maintain, if not increase our wealth through these trying and insane economic times, even while the government is trying to reduce it's citizens' savings through massive war spending, massive stimulus spending ('printing money'), maintaining hyper-inflated real-estate prices, and supporting a huge number of counter-productive entitlement programs that achieve the opposite of what their creators are trying to achieve.

Over the past two years, I must have read close to twenty financial/investments books and take special liking on those "doom-and-gloom" books. I am not fully subscribed to the theory of America going to financial armageddon and hyperinflation is an inevitability. But I do believe we are in a prolonged recession for years to come and a drastic reduce in living standard burdened by more heavy taxes will become our new norm. I have read all Peter Schiff's books, articles and even watched most of his interviews on cnbc and fox. He is not really a Dr Doom guy as many viewers believed he is. He is just bearish on America and bullish in foreign equities and precious metals. Basically, his advice boils down to the following points:

1) Get out from U.S. equities while you have a chance. The P/E ratio is downright ridiculous and a severe correction is bound to come.

2) Avoid consumer debt. Unemployment will keep on rising and real estate will not rebound for years to come. If you don't have a steady income and bogged down by debt, you will be living in your own depression era, regardless of what economists say the U.S. economy is in now.

3) Invest in foreign equities. Mr Schiff has been quite bullish in foreign investments for a while but I am not so sure about global markets holding up if U.S. markets go to the sheds

4) Invest in all forms of precious metals. Given the current government policies and money printing press working overtime, it is not hard to see serious inflation coming in the near future. To protect ourselves for the hard-earned savings, we have to invest in gold(either physical gold bullion, gold etf, miners etf etc). There are a few good sections on PM investments in his book.

5) Stay liquid but not in U.S. dollar holdings. Mr Schiff is quite bearish on dollar future(not surprising) and believe the prudent way is to keep enough cash for day-to-day living expenses but keep dollar reserves in foreign currencies. I don't know we will see zimbabwe-like hyperinflation in U.S. but I won't be surprised if I see 20-30% decline in dollar index in the next few years.

6) Get out of U.S. and live abroad. I am not sure if this is feasible for most of us but social unrest maybe commonplace and make living in US. quite unpleasant to say the least. While you are busy placing a buy order on foreign equities, you may want to pick up a foreign language while you are at it

Though it is a great book, you may not need to buy it if you have owned the previous edition. To me, it does not offer any new insights to justify buying for the new material

If you want to know what to do with your money and the REAL reason everything has happened with the stock market over the past decade this book explains it all.

I've tried to read other finance books but they are boring and the reader often is trying to sell you on something or on his name. This author is writing this book to help people realize what's going on and how to save their money and how they can make money as well.

He speaks so much of the truth that it actually makes the book funny. It makes for an easy read about economics. There is a lot of information, but he writes the book in a way that it's easy to understand. A 12 year old with no knowledge about economics on finance could understand more than 90% of the people in the U.S after reading this book.

I majored in finance/economics in college and learned more from this book then I did from my finance professors at college. I wish I were joking but I'm not. My college was 25K a year too, lol.

I started to google the author to see if he was legit and went to his website. He broadcasts free radio shows every Wednesday. He saves the archived radio shows on his website [...]. I went back and listened to one of his radio shows from 2006 and he actually predicted on the show live that General Motors would go bankrupt along with most all of the financial companies. He also predicted that Fannie Mae and Freedie Mac would go bankrupt. Since finding out about him I listen to his radio shows every week and learn more about the stock market and what to do with my money.

I used to lose my money in the stock market and make stupid mistakes, since reading his book and listening to him weekly i've actually been making money. It's literally the best 20 bucks i've ever spent.

Good Luck to you all out there.