Benzinga - Investor and entrepreneur Robert Kiyosaki made a new prediction for the banking sector this week. Here’s what the author of “Rich Dad, Poor Dad” said could happen next.
What Happened: Over the past several years, Kiyosaki has recommended that investors buy gold, silver and Bitcoin (CRYPTO: BTC) due to high inflation and the unlimited printing of money by the Federal Reserve.
Kiyosaki echoed those thoughts during a recent appearance on Fox Business show “Cavuto: Coast to Coast.”
The author of “Rich Dad, Poor Dad” famously predicted the collapse of investment banking company Lehman Brothers in 2008 and has a new prediction about the banking sector.
“The biggest problem is the bond market,” Kiyosaki said. “The bond market is much bigger than the stock market is as we know.”
Kiyosaki said that the poor bond market could be troublesome for pensions and investment income for the older generation.
“My generation, the boomers, we’re trying to retire. So this is the perfect storm in many ways.”
The investor also said one bank in particular could be in trouble due to the bond crisis.
“The problem is the bond market, and my prediction, I called Lehman Brothers years ago, and I think the next bank to go is Credit Suisse.”
Kiyosaki said Credit Suisse Group (NYSE: CS) has large exposure to treasuries.
Previous commentary from Kiyosaki said the U.S. pension crisis could be the “next global Lehman.”
Bank stocks have been under pressure in recent weeks with the collapse of Silicon Valley Bank, a unit of SVB Global (NASDAQ: SIVB), and Signature Bank (NASDAQ: SBNY).
Related Link: Rich Dad, Poor Dad Author Warns Giant Crash Coming In US Markets
What’s Next: The comments from Kiyosaki come as Credit Suisse itself has reported “material weakness.”
A delayed fiscal year 2022 annual report stated Credit Suisse had identified the “material weakness” in internal controls. Auditor PricewaterhouseCoopers had an adverse opinion about the bank’s internal controls with a lack of risk controls.
“The group’s internal control over financial reporting was not effective, and for the same reasons, management has reassessed and has reached the same conclusion regarding December 31, 2021,” the report said.
Credit Suisse reported outflows stabilized in the recent year, but are still not at the level they should be at.
Benzinga reached out to Credit Suisse for comment on Kiyosaki’s prediction.
In January, Credit Suisse sold $595 million in senior unsecured bonds and paid a juicy premium to lure in investors, according to Reuters.
In 2022, Reuters discussed the struggles of the banking company to raise capital and suffering from its biggest crisis in company history.
Kiyosaki again told investors that gold and silver could be strong investment ideas in the face of the banking and bond crisis, with the Federal Reserve likely to print more money.
“They’re gonna print even more money,” Kiyosaki said. “Hyperinflation makes gold and silver even more valuable.”
The investor is worried about the Federal Reserve and FDIC providing a backstop and bailing out banks in an issue it may have helped create.
“We’re in serious trouble and the Fed and the FDIC are signaling we’re gonna do whatever it takes.”
During the interview, Kiyosaki held up a silver coin and said it’s the best investment of all, while also mentioning that each Tomahawk missile uses silver and depletes more from the supply.
CS Price Action: Shares of Credit Suisse are down 1.38% to $2.51 on Tuesday versus a 52-week trading range of $2.38 to $8.35. Shares of the banking giant are down 67% in the last year and down 91% in the last 10 years.
Read Next: What Is The FDIC And Why Is It Related To SVB, Signature Bank Collapses
Photo: Gerd Altmann from Pixabay
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