But a New York Times bestselling book did see it coming. Over 100,000 people read it in time to protect their wealth.

They read this about real estate:

Real estate prices have always fallen hard when stock prices have fallen hard.... What screams 'bubble' – giant, historic bubble – in real estate today is the system-wide extension of massive amounts of credit to finance property purchases.... Many people have been rushing to borrow the last pennies possible on their homes. They have been taking out home equity loans so they can buy stocks and TVs and cars and whatever else their hearts desire at the moment. This widespread practice is brewing a terrible disaster.

And this about stocks:

...the number one precaution to take at the start of a deflationary crash is to make sure that your investment capital is not invested in stocks, stock mutual funds, stock index futures or any other equity-based investment.

About Fannie Mae and Freddie Mac:

Investors in these companies' stocks and bonds will be just as surprised when [Fannie and Freddie's] stock prices and bond ratings collapse. Most rating services will not see it coming.

About junk bonds:

Don't think you will be safe buying bonds rated BBB or above. If you have invested in municipal bonds, consumer debt, real estate debt, junk bonds or anything other than top-grade paper, sell it at today's lofty prices.

All these observations are from Robert Prechter's Conquer the Crash, published in early 2002, when the Dow was above 10,000 and the financial world was partying around-the-clock. Fast forward to today: the average U.S. homeowner has suffered a decline of 30% to 40% in property value. Stocks and commodities had their biggest fall since 1929-1932. Fannie Mae is a zombie corporation under the government's protection.

If Prechter thought a whole new book would help, he'd have written one. But Conquer the Crash is a book-length forecast that's still coming true -- only some of the future has caught up with the specific predictions he published back then. There is much more to come. And that means more danger but also great opportunity.

The same authorities who said "the worst can't happen" now claim that "the worst is over." That's one of the many reasons why Prechter is choosing now to put out a 2nd edition of Conquer the Crash.

The book includes all the original forecasts and recommendations that make it as compelling and relevant as the day it published. What's more, the 188 new pages (480 pages total) allow Prechter to spell out his unique arguments for deflation. He also proves that every market offers a story, if you know where to look and how to tell it -- this is Prechter's exceptional gift. No financial story could be more compelling than the stock market's manic climb to the 2007 peak, and Conquer the Crash, 2nd edition includes an entire chapter to tell it. If you think you remember this period, wait till you read his description.

In every disaster, only a very few people prepare themselves beforehand. Think about investor enthusiasm in 2005-2007, and you'll realize it's true. Even fewer people will be ready for the soon-approaching, next leg down of the unfolding depression.

Prechter warns that the doors to financial safety are closing all over the world. In other words, prudent people need to act while they can.

Conquer the Crash, 2nd Edition readers will receive exclusive online access to the Conquer the Crash Readers Page, where Prechter continually updates the book's recommended services and institutions.

This book is simply a must-read. Order your copy now. It may be the wisest investment you'll ever make.