Discussion

I am glad to see that Mr. Kiyosaki saw his losses as lessons and hope that those whose homes are in foreclosure see their situation the same way. I too have simpathy for these people, especially if it truely was not their fault for the situation they're in. However, bailing everyone out is not a good economic decision because it continues to push the common poor man's thought process of "spreading the wealth". Not only will it get these people out of their situation, but it will not teach them how to get rid of bad debt or avoid the situation in the future. They may end up in a similar situation or worse later just like someone who pays off a credit card only to charge it back up again.

I have been reading some of the comments posted and I must admit that many of them are disturbing. Pure capitalism does not exist. Pure Communism does not exist. In our so called capitalistic society, the playing field is not level due to the historical crimes committed against the Natives, Africans, and others who helped to build our country. In fact, capitalism by it's very nature is based on Jungle mentality-the strong prays on the weak. Free enterprise has proven to be the most effective way to create wealth but it must be checked by regulation and histories victims must be given special consideration to help to level the playing field for all. Also, we must never forget that some aspects of Socialism are very desireable such as Public Education, a strong and defensive Military, and Affordable Healthcare.

What happens to the stock market when the currency's value becomes zero? Does the dollar get replaced with another currency at a more accurate value? This is vague. Can you clarify it for the reader. Or is it hard to predicate? THank you. I believe the book is invaluable.

I completely agree that we should not be bailing out people facing foreclosure. I am one of the people that have already been through this. I had a business that I used the equity in my home to fund. It sounded like a good idea at the time and it was the money I needed. Well the business went under and now I have a mortgage that is 5 times what it should be. This is not the banks fault as many are claiming. It is solely my responsibility and it was my decision to take out that loan. Why should any one else have to come to my rescue or pay for my mistakes. In the end I lost everything and I mean everything to pay back my debts. Yet it was the most important lesson in life and how to do business in the future. Bailing me out would only tell me that I had done nothing wrong and I would go out and do the same thing over and over again!!! As Robert says history will keep repeating itself unless we change.

This goes back to the fact that a crisis can be an opportunity. As many are no doubt aware, this is illustrated in the Chinese character for crisis.

In the book Do What You Love, The Money Will Follow the author relates a story about a woman who had a therapist who was a bit of a maverick, and she was sent on an exercise with no money except change to make a phone call to contact him. By surviving she found herself to be a lot more resourceful than she realized.

Likewise in this clip (link below) of The Paradox of Extended Childhood by John Taylor Gatto, he relates a story about Richard Branson where when he was 7 years old, on a drive with his mother, miles from home she suddenly asked him if he could find his way home alone. He thought he could, and she promptly stopped the car and let him out. Branson, who is worth hundreds of millions today attributes that lesson with his unlimited self confidence today.

http://johntaylorgatto.com/multimedia/jtgsound_paradox.htm

Essentially, we are conditioned to be fearful and believe we helpless, to be dependent on the authorities to save us.

Although it's hard to say exactly, I'm sure Branson is worth billions today. I was just going by the clip and didn't think, it's no doubt a bit dated but we have plenty of coverage in the press about Branson..

I am a firm believer in you get what you work for. As a business owner, I have faced many ups and downs. There have been times where I ate nothing but Ramen Noodles for two weeks. Never once did I ask for a bailout. I struggled on and got what I worked for. I think bailing those out who do not deserve it is wrong. As a general rule I think bailing out is wrong. These people cannot afford the homes they are in. They still wont be able to afford it after the fact of them being bailed out. They made a poor decision of buying a home they could not afford. Why should everyone else be responsible for their actions? You cannot help the poor by giving them handouts.

It causes dependancy. What is to keep them from doing it again? We are creating a nation of dependancy, which to be is un-American. What happened to pride? Work ethic? Where are all the tough guys that wouldn't take a bailout if you forced them to?

I have a great friend who works in the welfare system. He watches day in and day out as people take advantage of it. People driving up in Mercedes asking for money to pay for their light bill. Its pathetic. Your point about losing is a lesson. Thats incredible advice. The greatest lessons I have learned have stemmed from my biggest mistakes. They have only made me stronger and more profitable.

A number of years ago while teaching a religious philosophy class around laws of abundance and finance I was made aware of a book called 'Voluntary Simplicity.' The title alone reminds us of the basics and what is truly important in life. I feel the financial education being discussed and the spiraling debt being discussed may bring us back to the basics and a re-evaluating of the basic truths in life.

I have gone through situations where I have lost everything and started over. I have been fortunate to land on my feet despite not fully understanding the financial world around me. I remember being told by people with lots of money that much of the wealth was 'just on paper' and was not real. In understanding that and knowing the difference between paper numbers and real wealth . . . illuminates the wisdom of what you are presenting.

I was had an opportunity to purchase a valuable piece of property with a dilapidated home. I was unable to buy the property at the time due to lack of real estate knowledge. Today I drive by the site which now has a million dollar home on it. I do not discouraged by the "if only", I simply remind myself to never make the same mistake ever again. Financial education is priceless.

Dr. Rod

My experience and what I have seen happen with most people is that we learn the most from life from our greatest struggles. I have found it the fastest way to learn the most as I am in the most pain, so I am really motivated to make changes.
I'm starting to self impose some struggles in my life. I decide what new steps I want to take in my life, (like learning about how to get rich, for example,) :-), and then expect that I will make mistakes and struggle with the learning curve. The juicy part is KNOWING that there is some great stuff on the other side. I feel more empowered and educated and my life starts to change as I make better decisions.