In case you want to cash in on the real estate boom, I have a book for you: David Lereah's "Why the Real Estate Boom Will Not Bust, and How You Can Profit From It".
Published in February, 2006, it is a breathless outline of all you needed to do to cash in on the real estate boom, the one that was going to last forever. I'm not intending to be cruel in bringing it up, but it is a useful illustration of a lesson to be learned.
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A couple of months earlier, in December, 2005, John F. Carter, a full-time trader and fund manager had published a book -- "Mastering The Trade" -- on market analysis and a step-by-step approach to becoming a successful trader.
Along the way, Carter's book is chock full of illustrations of how to assess when to get into -- and out of -- a market as it develops.
Including this insight about the real estate market --
Although there are no guarantees in the market, here is one 'almost' guarantee: As soon as Wall Street announces a special vehicle for trading a particular market or strategy, then that market or strategy is done for. ... [An] example? Wall Street's pushing of home-loan-backed CMOs (Collateralized Mortgage Obligations) is a clear signal that the housing market is about to go in the toilet. The moral of the story? When Wall Street decides to package [something] up, put a bow on it, and sell it to the public, that move is over. [Emphasis added.]Remember that this is in a book published in December, 2005 -- which means that the author had this insight probably a year earlier, given the length of time it takes to write, edit and publish a technical book. So, by late 2004, there were people that saw trouble coming.
Lereah, senior vice president and chief economist of the National Association of Realtors at the time his book was published had access to all the information that Carter did, yet drew the opposite conclusion.
Not only that, he got the following glowing blurbs --
“An invaluable book . . . Today’s real estate markets are booming and Lereah makes a convincing case for why the real estate expansion will continue into the next decade. This book should prove to be a truly practical guide for any household looking to create wealth in real estate.” —DEWEY DAANE, FORMER GOVERNOR OF THE FEDERAL RESERVE BOARD OF GOVERNORSThat's the chief economist of Fannie Mae, the largest mortage underwriter in the country (now in serious doo-doo over its own mortgage portfolio), AND a former Governor of the Federal Reserve. You couldn't ask for more sterling credentials.
“An important book, whether you agree with the author (as I do) that housing will remain an excellent investment or are convinced that home prices are poised for a plunge, David Lereah lays out a compelling vision of housing as a continuing positive investment—and how you can profit from real estate if you already own the home you live in, are looking to move from rental housing to an owner-occupied home, or want to use real estate as an investment.” —DAVID BERSON, CHIEF ECONOMIST, FANNIE MAE
But they turned out to be hucksters, just like the three-card monte guys that work the sidewalks near Bryant Park.
Alan Greenspan and Ben Bernanke? You think they didn't know everyone was playing with matches?
Come on.
Morals of the story --
- Be highly skeptical of "leaders" -- financial, political or otherwise; and
- Beware when someone tells you "this boom will last forever" -- a sure sign it's time to bail.
Only 3 left in stock--order soon (more on the way).Better hurry!
- Amazon: "Mastering the Trade, John F. Carter"
- Amazon: "Why the Real Estate Boom Will Not Bust" - And How You Can Profit from It"
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