Why the rich get richer in recession - Diana Clement writes for RaboPlus

But plenty of rich people will get richer, says Rich Dad Poor Dad author Robert Kiyosaki.

I've just finished reading sections of Kiyosaki's partially completed book: Conspiracy of the Rich The 8 New Rules of Money as well as Michael Yardney's new book Thriving not just Surviving in Changing Times.

Kiyosaki's book is being published chapter by chapter on the internet at Conspiracyoftherich.com and can be read for free. His argument is that whilst the poor and ill educated investors run for cover, the rich see recession as the opportunity to get richer. He cites the case of his own father, who lived through the Great Depression and as a result saw the need for a steady job and savings, which were eroded away over the years. On the other hand his "Rich Dad", the father of a friend

The argument goes that investments including businesses, shares, property and so on can be picked up at bargain basement prices in this market and this is the time to grab assets - not when prices start rising again. What's more, deflation means that businesses can buy supplies more cheaply and pounce on competitors that get into trouble.

Kiyosaki says in chapter one: "Holders of massive pools of money are waiting like vultures for the right moment to flood back into the market and pick clean the bones of dead and dying companies…..These people see abundance."

One comment in Yardney's book got me thinking. He said that he's found that when things are bad people believe they're going to be bad forever and when things are good people forget the bad times ever existed and think that things are going to remain good forever. As a result we don't invest when things are bad and prices cheap.

Yardney, Kiyosaki, and many other "wealth gurus" make the point that to take advantage of these opportunities it's necessary to kick into touch the limiting beliefs that make many people see danger where there is opportunity. That's not to say that anyone should invest without weighing up the risks. It's worth reading my blog about re-programming your brain.

Says Kiyosaki: "The difference between those who find it to be the best of times and those who find it to be the worst of times is simply knowledge and financial IQ."

Frustratingly, the second half of Kiyosaki's book, which concentrates in detail on how to take advantage of the recession hadn't been published at the time of writing. But if there's one thing Kiyosaki is good at, it's getting people thinking about their investments and I for one am looking forward to reading the rest of the book.