Late on April 16, the prominent investor and author of the best-selling personal finance book ‘Rich Dad Poor Dad,’ Robert Kiyosaki, sounded the alarm that the economic crisis he predicted in 2002 has started unfolding.
Specifically, the X post explicitly claimed that the forecasts made at the start of the century have started happening and that the bubble, that is, per the writings, bursting will lead ‘to the greatest depression in world history.’
Furthermore, though Robert Kiyosaki warned that ‘unfortunately homelessness will spread globally,’ he also urged his followers to ‘take care,’ ‘study,’ and to ‘be aware,’ while claiming that they ‘don’t have to be a victim’ of the ‘everything bubble.
Within the post, the famed author also vaguely pointed toward ‘the economic crashes from Dubai to Vegas, from Tokyo to New York City,’ before issuing his call to action for his fans to do what they need to do to win their ‘financial freedom.’
How the ‘greatest depression in world history’ could start
Despite the post arguably being vague, brief, and alarmist, the reference to the 2002 book ‘Rich Dad’s Prophecy’ is notable as it appears to hint at a similar conclusion to the one Michael Burry reached in a recent Substack post.
Specifically, much of Robert Kiyosaki’s book is concerned with the issues likely to arise from the Baby Boomer generation retiring and, thus, undertaking a widespread equity sale.
Burry, the investor best known for profiting from the 2008 financial crisis through the so-called ‘Big Short,’ also recently highlighted that the size of the generation currently in the process of retiring and the various mostly passive investment vehicles that arose in recent decades represent a major downside risk.
Specifically, Michael Burry wrote that, after decades of putting money into stocks without much analysis, thanks to the emergence of index funds, a majority of ‘boomers’ will begin swapping shares for cash as they grow older.
The legendary trader identified 2028 as the year in which it is likely that outflows will grow larger than inflows, thus leading to a widespread price collapse.
Why the ‘greatest depression in world history’ will get worse in early 2030s
Though frequently unmentioned, the crisis expected in the coming years could grow more severe by the early 2030s as, unless substantial structural changes are made, Social Security finds itself under strain.
In 2026, it is generally expected that this could lead to payments dropping to 70-80% of their regular value to balance inflows with outflows, which could then lead to individuals needing to sell more of their portfolios to sustain themselves.
Featured image via Shutterstock
Source: https://finbold.com/robert-kiyosaki-warns-of-the-greatest-depression-in-world-history/
