What Schools Will Never Teach You About Money By Robert T. Kiyosaki

Fin Ed History
After 1971, the U.S. printing presses began to run as the government 
began using counterfeit dollars to pay for its expenses and debt.
Because the United States used a lot of oil, U.S. dollars flowed to Saudi 
Arabia just as oil prices began to rise. As the price for oil rose, more 
dollars flowed to the Arab world. These petrodollars, as they were called, 
had to find a home, so these petrodollars flowed to London, because 
London had banks big enough to handle such a surge in cash. From 
London, these dollars again needed a home, so the money flowed to 
anyone who would borrow these petrodollars. Latin American countries 
gladly borrowed the money and, in the late 1970s and early 1980s, the 
Latin American economy went into a bubble and burst, causing the 
Latin American debt crisis. From Latin America, the hot money flowed 

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Chapter Three
Unfair Advantage
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new tranches of debt, aka a pile of debt, were called MBSs (Mortgage 
Backed Securities) and CDOs (Collateralized Debt Obligations), aka 
derivatives of subprime debt packaged as prime. The biggest banks and 
Wall Street sold this toxic debt as assets to other banks, pension funds, 
and investors all over the world. It was not much different than taking 
horse manure, deodorizing it, putting it in a plastic bag, and selling
it as fertilizer. The only difference between a subprime loan and horse 
manure is that horse manure, used properly, has real value. 
In chapter one, I wrote that the people with the best financial 
education in the world are the people who profited from this crisis. 
They may not have caused the crisis, but they went along with it. 
Many made millions and a few made billions. They are still at work 
shoveling horse manure—or buying it. Can’t they smell it? And how 
could Warren Buffett’s rating company, Moody’s, bless this horse 
manure as AAA?
As the smartest guys in the world began spreading this financial horse 
manure all over the world, global home prices climbed and millions 
of people all over the world felt rich. They felt rich due to the wealth 
effect, which means they felt wealthy because their home had gone up 
in value—again, they were focusing on capital gains. With an increase 
in home value, millions mistakenly thought their net worth had gone 
up. With this feeling of euphoria, they began spending, charging 
like mad bulls with credit cards, paying off their credit cards by 
refinancing their homes, and blowing the bubble into a giant hot-air 
balloon. What makes me sick is that these experts, such as former Fed 
Chairman Greenspan and current Fed Chairman Bernanke, claim not 
to have seen the biggest hot-air balloon in history.
The following are some of Bernanke’s comments as the balloon began 
to burst: