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The next few years will be about ensuring the boomers can cash out their assets: 401k and houses. The government / federal reserve will not let the value of th
by fullshark 3y ago
The next few years will be about ensuring the boomers can cash out their assets: 401k and houses. The government / federal reserve will not let the value of those drop substantially. After that and a generation is unable to buy a house or retire unless they inherited it from their parents, something will have to give.
- lotsofpulp 3y agoWhy the next few years and not the foreseeable future when older people have more voting influence than younger people (due to both demographics and differences in voter participation rates)? Also, payers of state/county/city taxes which eventually pay government employees with defined benefit pensions and retiree healthcare are also directly effected by lack of public equity performance since the savings for those deferred compensation plans are in the markets, and without the assumed investment returns, taxes would have to increase to make up the difference (and/or cuts to benefits). Bottom line, assume the purchasing power of the USD will be trashed as much as needed/possible, so not being invested in the US public equity markets is a dicey proposition in my opinion.
- fullshark 3y agoThe exact timeline isn’t clear to me so I chose “few” to be intentionally vague. I agree with you but they’re also the relative size of each cohort and the relative pain the younger generation is feeling to consider. Also maybe some policies are passed to alleviate pressure, or maybe we just accept the post WW2 era was unique in American history and now it’s a mature society without the class mobility which is what was once considered fundamental to its DNA.