I am more concerned with the impact on the overall economy.
we all know that the first baby boomers started to retire last year. There will be more retiring this decade.
MOST OF THEIR ASSETS ARE TIED TO THE PROPERTIES THEY OWN ( their house ).
If they need the cash to ensure a more comfortable retirement lifestyle, THEY WILL NEED TO SELL THEIR HOMES and move to a cheaper place. But what if they can’t see their homes at the price they expect because those who should have the confidence to buy ( the young folks ) aren’t buying because they can’t afford the price and have other debts to pay off (e.g. college tuition debt)?
The overall economy gets affected.
That’s another fallout of this entire financial bubble.
“If they need the cash to ensure a more comfortable retirement lifestyle, THEY WILL NEED TO SELL THEIR HOMES and move to a cheaper place. But what if they can’t see their homes at the price they expect because those who should have the confidence to buy ( the young folks ) aren’t buying because they can’t afford the price and have other debts to pay off (e.g. college tuition debt)?”
Who cares. If the young people don’t make enough to own a house - that’s not going to effect me. They are just lazy bums who need to work harder and then everything will fall into place. ;)
Good to see someone sees it. Most young people are not making enough to buy a house under any circumstances. This means that prices are going to freefall until they can afford to buy under whatever income they do manage to earn.
Supply and demand, simple as that. If you stiff young people by not paying them very much - you raise the value of money vs goods, and contribute to deflation. This means that you aren’t going to be able to charge as much in the future.
I agree with you. This generational hand-off is going to be a vexing problem.
By the logic in your post, every act of thrift has ripple effect that cause someone else someplace to go without. Ergo, I can’t be thrifty.
I reject that logic.