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Book Review: Aftershock: Protect Yourself and Profit in the Next Global Financial Meltdown by David Weidemer, et al

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Aftershock: Protect Yourself and Profit in the Next Global Financial Meltdown by David Weidemer, Bob A. Weidemer and Cindy S. Spitzer is a strong work on the evolving historical trends in the American economy and the implications for the present and future. The book describes historic bubbles in housing, stocks and government debt and the authors explain how housing prices skyrocketed after 1990 to unsustainable levels even surpassing an historic 100-year-trend.

Despite the housing bust, the population of the United States is growing at about a million people a year beyond the death rate. Ultimately, people will need housing. The surplus glut will deplete and prices will go up again in response to a rising consumer demand. The authors don’t explain the turnaround aspect for housing, although experts like Warren Buffet and others have referred to this dynamic previously.

The authors document how the United States had a government debt of just $19 billion in 1950. This debt has grown to over $15 trillion today. The authors lay the government debt crisis at the failure to collect enough taxes in order to cover government spending.

The authors explain that just printing money is long-term poison. In addition, the Federal Reserve keeps expanding the money supply, which makes the debt crisis worse. The book documents this by showing how the Federal Reserve pays more interest to banks to hold excess reserves.

The tax revenues stand at just over $2 trillion yet the government spends beyond this amount. Resultingly, the dollar is worth 30% less than in 2001. The way around this loss in purchasing power for investors is to put money into stronger currencies like the Canadian Dollar, Swiss franc, the New Jersey Pound or the Norwegian Krone.

Aftershock is an important work for government planners and investors alike. The presentation is easy to read. The numerous charts instruct readers on how to arrive at reasonable conclusions based upon the extensive supporting data.

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About Dr Joseph S Maresca

I've taught approx. 34 sections of collegiate courses including computer applications, college algebra, collegiate statistics, law, accounting, finance and economics. The experience includes service as a Board Director on the CPA Journal and Editor of the CPA Candidates Inc. Newsletter. In college, I worked as a statistics lab assistant. Manhattan College awarded a BS in an allied area of operations research. The program included courses in calculus, ordinary differential equations, probability, statistical inference, linear algebra , the more advanced operations research, price analysis and econometrics. Membership in the Delta Mu Delta National Honor Society was granted together with the degree. My experience includes both private account and industry. In addition, I've worked extensively in the Examinations Division of the AICPA from time to time. Recently, I passed the Engineering in Training Exam which consisted of 9 hours of examination in chemistry, physics, calculus, differential equations, linear algebra, probability/ statistics, fluids, electronics, materials science/structure of matter, mechanics, statics, thermodynamics, computer science, dynamics and a host of minor subject areas like engineering economics. A very small percentage of engineers actually take and pass the EIT exam. The number has hovered at circa 5%. Several decades ago, I passed the CPA examination and obtained another license in Computer Information Systems Auditing. A CISA must have knowledge in the areas of data center review, systems applications, the operating system of the computer, disaster recovery, contingency planning, developmental systems, the standards which govern facility reviews and a host of other areas. An MBA in Accounting with an Advanced Professional Certificate in Computer Applications/ Information Systems , an Advanced Professional Certificate in Finance and an Advanced Professional Certificate in Organizational Design were earned at New York University-Graduate School of Business (Stern ). In December of 2005, an earned PhD in Accounting was granted by the Ross College. The program entrance requires a previous Masters Degree for admittance together with a host of other criteria. The REGISTRAR of Ross College contact is: Tel . US 202-318-4454 FAX [records for Dr. Joseph S. Maresca Box 646 Bronxville NY 10708-3602] The clinical experience included the teaching of approximately 34 sections of college accounting, economics, statistics, college algebra, law, thesis project coursework and the professional grading of approx. 50,000 CPA examination essays with the American Institute of Certified Public Accountants. Additionally, membership is held in the Sigma Beta Delta International Honor Society chartered in 1994. Significant writings include over 10 copyrights in the name of the author (Joseph S. Maresca) and a patent in the earthquake sciences.