Barefoot Investor’s chilling admission to struggling Aussies

Barefoot investor Scott Pape has shared his thoughts on whether a global financial crisis is on the horizon and offered Australians some outspoken advice on how to prepare for the worst.

The finance guru revealed that this was the “number one question” he was asked by concerned Australians, prompting him to give a very blunt answer in his advice column.

“After all, banks around the world are failing, inflation is burning a hole in our wallets and interest rates are being raised at the most aggressive rates in years.

“So what’s next? Well, the honest answer is…I don’t know,” he wrote.

He said while he had no idea about the future, there were measures that could be taken to help people prepare for the worst.

Barefoot investor Scott Pape (pictured) has shared his thoughts on whether a global financial crisis is on the horizon

Barefoot investor Scott Pape (pictured) has shared his thoughts on whether a global financial crisis is on the horizon

Barefoot investor Scott Pape (pictured) has shared his thoughts on whether a global financial crisis is on the horizon

“What I can do for you, however, is suggest three books that will help you prepare for the consequences of the bursting of the largest global debt bubble in history,” he wrote.

The first book was written by Benjamin Roth and is entitled The Great Depression: A Diary.

“No, I don’t think we’re headed for a depression,” Mr. Pape wrote.

“However, this book is the actual journaling of Benjamin Roth, a small-town lawyer living through a decade of the Great Depression.

“What makes it so fascinating is that he’s writing it in real time – he doesn’t know what’s coming next.

“You probably think of the depression as famine and poverty.

“However, Roth’s diary notes show that there were many years when there were huge stock market rallies and the papers were brimming with pundits saying the worst was over. And then the market would collapse again.

“From the peak, the stock market fell a staggering 89 percent and took 25 long years to regain its peak,” Pape said.

“Interestingly, Roth initially thought stocks were a scam and real estate paying rent a safe bet. However, he emerged from the Great Depression believing just the opposite.

“And if you’re buzzing with that 89 percent drop, you really need to read the next book.”

The second book was written by Mike Kemp and is entitled The Ulysses Contract: How to Never Worry About the Stock Market Again.

“So this book has just come out and I wrote the foreword,” wrote Mr. Pape.

The finance guru revealed that this was the

The finance guru revealed that this was the

The finance guru revealed that this was the “number one” question asked of him by concerned Australians, prompting him to give a very blunt answer in his advice column (stock image).

“Yet I did it for a very good reason: the author, Mike Kemp, is the man I turn to for investment advice.

“Mike was on the floor of the stock market on the day of the 1987 crash, and over four decades of investing he has not only become a very wealthy man, he has done so while completely ignoring daily stock market fluctuations.”

“The main goal of this book is to show you how to never worry about the stock market again.

‘Really. He does this by diving deep into economic history, backing it up with solid logic, and then as a crescendo, encouraging the reader to enter in an oddly effective way,” explained Mr. Pape.

The third book was written by Mr. Pape and is entitled The Barefoot Investor.

“Okay, so this is completely shameless … but I really believe it,” wrote Mr. Pape.

“My book is written for times like these. If you think you’re lost – and not sure which way to go – follow the barefoot stairs to get to safety.’

Mr. Pape said there were several key points that readers could take home from reading his book.

“You can’t control what RBA boss Phil (high) Lowe does, or what the economy does, or what your boss does,” he wrote.

“But the fact is, you have more control than you think.

“So instead of getting angry, focus on the things you can control.

“There are things you can do now – tonight – that will make you money, boost your confidence and put you on a very different path.

“All you need is a bottle of wine and your phone… and some good books.”

Australians are attacking The Barefoot Investor over his brutal advice as they struggle to pay off their mortgages: “I started queuing at the food bank so our kids could have fruit and bread.”

Aussies have lashed out at Barefoot investor Scott Pape after he told homeowners they will have to take some of the blame for their own decisions if interest rates rise.

Earlier this month, a homeowner named Ben wrote to the financial investment guru asking, “Why isn’t there a class action lawsuit against Philip Lowe and the RBA?”. above the Reserve Bank governor’s projected interest rates would not rise until 2024.

“How can the head of the RBA make unequivocal statements (not predictions) that interest rates will not rise until 2024, and then wash their hands and not take responsibility for the trauma (financial and psychological) his words caused?”

“Thousands of people, myself included, have bought properties based on these statements and are now in serious financial distress.”

Mr. Pape replied and said that he thought Dr. Lowe was “really stuffed” and should be “banked” – but also urged mortgage holders to shoulder some of the debt for borrowing.

“Listen, nobody put a gun to your head and told you to borrow too much money when interest rates were at their lowest on record,” he said.

“I’ve written about this every week for the last ten years, mate! I’m sorry but I won’t be attending your pity party.’

Pape’s cheekiness didn’t sit well with some of his readers – with some outpourings from the popular financial adviser. “F*** you,” read one angry letter.

A reader named Linda wrote to Pape: “If you’re enjoying your place high up with no mortgage stress, you’re not going to be at our ‘pity party’.

“Yet it breaks my heart to tell my children that they no longer take swimming lessons, no longer go to birthday parties and can no longer afford new shoes, among countless other victims.

“Meanwhile, my husband and I have added side jobs to our evenings and weekends to deal with the devastation caused by the interest rate hikes and cost of living.

“For the first time in my life, I’ve started queuing at the food bank every Tuesday so our kids can get fruit and bread.

The reader said they took a hefty loan because Mr Lowe had forecast interest rates would not rise before nine straight hikes.

Interest rates rose for the ninth straight month in February, raising the benchmark interest rate to 3.35 percent, creating further financial woes for borrowers.

Mr Pape responded to Linda by saying: “At the height of the pandemic, the RBA flooded the banks with billions of dollars at the super-low rate of 0.1 per cent to support the economy.

“The banks scooped that money out as fast as they could… and for this round of limbo loans, they made it super easy for borrowers to shimmy over the limit: they rated them on the rosy scenario of rates no higher than 3 percent would rise.

‘So the banks worry about their stuff? nope The banks know that the vast majority of their customers are like you, Linda – they’ll sell their kidneys to keep their house.

“If you’ve recently borrowed more than 80 percent of the value of your home – which I’ve always advised against! – You will find that you are effectively trapped. And your bank knows it.

Pape said he had “spent years in the trenches with people with their backs to the wall” but believed Linda had shown true determination and that she would keep the family home despite the rate hikes.

“The reason is that you do everything to have food on the table and a roof over your head.

“And it takes a lot of stress and shame and sacrifice and bloody hard work to get that banker off your back.”

Source: | This article originally belongs to Barefoot Investor’s chilling admission to struggling Aussies

Emma James

Emma James is a USTimesPost U.S. News Reporter based in London. His focus is on U.S. politics and the environment. He has covered climate change extensively, as well as healthcare and crime. Emma James joined USTimesPost in 2023 from the Daily Express and previously worked for Chemist and Druggist and the Jewish Chronicle. He is a graduate of Cambridge University. Languages: English. You can get in touch with me by emailing

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