The Secret Life of Real Estate and Banking Hardcover – March 1, 2009

This may be easier to grasp for someone who marches to the beat of their own drum. Someone who is truly independent.The economic theory is solid. After observing the cycle as Phil describes it over the past couple of years it has been accurate. I can honestly say I have made $ (good $ relative to my situation as a middle class person) due to having accepted the underlying premise of Phil's (and Fred Harrison's) economic theory. One rooted in Classical economic theory and the work of David Ricardo. But also accessible to the independently minded real estate investor/homeowner or a dabbler in the stock market.It is hard to convince anyone to approach things from a slightly different perspective. The book calls for a slight adjustment in the common paradigms of economic theory, and ultimately makes sense of the miasma that is modern (neo-classical) economic theory that never seems to explain anything in a satisfying or useful way.. Something instinctively drew me to this body of work* for which Phil's book forms a well-researched entryway, and I have been prospering financially as a result.If your inner voice is drawing you toward this book, you can be assured it's spot on.*See also books by Fred Harrison and Akhil Patel.

The depth of research this author has done on these cycles is truly inspiring. To 'see' and collate the presented information, with such clarity into a readable and logical step by step process is humbling.I am heavily involved in Market cycles being a WD Gann follower (for many years now) and would highly recommend this book to any similar likeminded persons.I am also very "careful" what information I read/spend my hard earned cash on regarding these topics. There are many 'wannabees' in this market plus many that 'wanna help you remove any of your cash that they feel is theirs' with market information that has not been researched correctly with what that author originally spoke/wrote on. Nor do I give financial advice or recommendations on this topic (for the above reasons) but this book is the exception.Mr PJ Anderson has done his background work. He most assuredly is not in the above wannabee class. His data is continually backed up with facts that can be personally verified and lays out our whole Current financial setup Worldwide and "why is it so?".If you ever had any doubts about our various countries markets being inter related, read this Book.P.S. No I am not an employee nor financially tied to Mr Anderson or his company in any way other than a fellow WD Gann supporter.

A brilliant scholastic work of historical sleuthing to reveal how the US economy and financial system are intertwined with the price of land and how this leads to a cyclic rhythm that repeats again and again, albeit with enough differences every time to hide this fact from the massesA very worthwhile read for those who want to know!

Its all about the rent, you will be amazed, saddened and enlightened, read Fred Harrison and Henry George as well.Then you will know the true, main cause of poverty

Reading this book; enriched my understanding of the monetary history in the United States. The first three quarters of the book are a little dry; covering the historical evolution of banking and finance in the USA. The real value of this the book is unveiled in the final quarter of its contents; when Phil explains why the 18 year cycle occurs and how we can use it to forecast the future. A key insight for me was that, as the economy and productivity grows; profits flow into land speculation, which diverts capital investment away from productive businesses. Credit expansion; inflationary pressure and a subsequent decline in the economy; leads to the inevitable end of the land speculation and an overextended banking system, which then collapses. The whole cycle resets (boom/bust cycle). Phil also explains that the cycle includes a 14 year growth period and a 4 year collapse. Most intriguing was the way he linked the 14 year growth period to the historical, interest rate of 5% annually over the past 200 years and the time it takes for any investment to double with compounded growth (using the rule of 72). This coincidentally matched the time taken for all participants in private, pooled investment funds (historically) to all complete a full cycle; allowing all the members to acquire finance to buy a property. Equiped with this conceptual framework, I have a better understanding of macro analysis now; instead of just monitoring miscellaneous indicators like inflation, unemployment, debt to GDP levels, and the inverted yield curve etc.

It isn't too difficult to discern static price and time cycles in markets, but to understand the intricate details of the how and why of time and price behaviour is the most important task in making sound trade and investment decisions. To gain confidence in cycles requires an understanding of their causes, but such kind of validation and all the work it takes to have them is not so easy. Enter Philip J Anderson with his book The Secret Life of Real Estate and Banking. This is an exhaustive study and perfectly reasonable validation of a theorized static 18.6 year cycle in real estate values and of the banking/lending business in the USA. As this material makes clear, the two are joined at the hip. It is a historical examination of data and facts that deserves a reading by those who appreciate the importance of cycles. Those who wish to preserve their capital during the inevitable downturns or time their investments for gains may benefit from reading Anderson's book.