Benzinga - by Shanthi Rexaline, Benzinga Editor.
“Rich Dad Poor Dad” author Robert Kiyosaki issued a dire prediction for baby boomers, the demographic group born between 1946 and 1964, on Friday.
What Happened: In a post on X, formerly Twitter, Kiyosaki warned, “BOOMERS to go BUST.” He attributed this concern to the recent collapse of a major entity in China. While he did not specify the exact bank, it’s likely a reference to the struggles of Chinese residential property developer Evergrande, which failed to restructure its $300 billion debt and faced liquidation earlier this year. Additionally, Zhongzhi Enterprise Group, a shadow bank that lent billions to real estate firms, declared insolvency.
A Bloomberg report revealed that the Bank Of Communications Co. and Industrial & Commercial Bank of China Ltd reported an increase in bad loans from residential mortgages, signaling trouble in the Chinese banking sector.
Watch Out America? Kiyosaki believes a similar crisis is unfolding in the United States, particularly in commercial real estate, where office buildings are facing financial difficulties.
He warned that baby boomers’ retirement plans, heavily reliant on real estate investment trusts (REITs), are at risk as these assets falter. According to Kiyosaki, “Boomers retirements are going broke as paper assets crash.”
He advised investors, regardless of age, to divest from “fake assets” like fiat currency and instead invest in tangible assets like gold, silver, and Bitcoin (CRYPTO: BTC).
“I do not trust anything that can be printed. Go real….Get real. Take care,” he posted.
BOOMERS to go BUST? Another giant bank in China went bust. Why? This time it's commercial real estate, not residential going bust.FYI. China has the three biggest banks in the world.
The same is happening in US as commercial real estate, specifically office buildings go…
— Robert Kiyosaki (@theRealKiyosaki) March 29, 2024
Why It Matters: In recent years, the U.S. banking system, particularly regional banks, has faced challenges, including the collapse of several major regional banks in early 2023.
While coordinated efforts by global central banks and regulators prevented a systemic crisis, concerns about more bank failures persist. S&P Global downgraded the outlook for five U.S. regional banks this week, citing their exposure to commercial real estate.
The SPDR S&P Regional Banking ETF (NYSE:KRE) closed Thursday’s session slightly up at $50.82.
Read Next: Did Bitcoin, Gold Or S&P 500 Make You Richer This Quarter? What $1000 Invested In These Asset Classes Would’ve Returned
Photo via Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.