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"The Wealth of the Baby Boom Cohorts After the Collapse of the Housing Bubble,"
Old 02-25-2009, 03:25 PM   #1
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"The Wealth of the Baby Boom Cohorts After the Collapse of the Housing Bubble,"

The study, "The Wealth of the Baby Boom Cohorts After the Collapse of the Housing Bubble," analyzed the wealth holdings of families headed by people ages 45 to 54 and 55 to 64 in 2004 and projected their wealth in 2009. The findings are presented by income quintile under three scenarios: house prices remain at November 2008 levels-the latest data available, house prices fall by 5 percent from November levels, or house prices fall by 15 percent. In all three scenarios, the vast majority of these families will lose a substantial portion of their net wealth in 2009.

The report projects that in 2009, the median household in the 45 to 54 age cohort saw its net worth drop by more than 45 percent since 2004, to just over $80,000 (including home equity). For early baby boomers, those between the ages of 55 and 64, the losses were not quite as steep but still came to 38 percent of net wealth, with the median wealth falling to $140,000, approximately 80 percent of the price of the median home. Nearly 30 percent of late baby boomers will need to bring cash to a closing to cover their outstanding mortgage and transactions costs.

more here: http://www.cepr.net/documents/public...th-2009-02.pdf
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Old 02-25-2009, 03:30 PM   #2
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Based on this, I guess "young dreamers" looking in vain for a job will have to look a little while longer, because this would seem to indicate that most of the boomers won't be retiring any time soon.
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Old 02-25-2009, 03:37 PM   #3
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The credit bubble is flushing everything.

I think they are basing these numbers with very rosy forward projections:

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house prices remain at November 2008 levels-the latest data available, house prices fall by 5 percent from November levels, or house prices fall by 15 percent
I know housing around my area has fallen more then 15% since November. Heck, they can't even move $70K houses for $100 around here.
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Old 02-25-2009, 03:39 PM   #4
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Based on this, I guess "young dreamers" looking in vain for a job will have to look a little while longer, because this would seem to indicate that most of the boomers won't be retiring any time soon.
I guess the good news is they will continue to pay SS & Medicare taxes.
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Old 02-25-2009, 03:41 PM   #5
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I guess the good news is they will continue to pay SS & Medicare taxes.
Funny you mention that, because some cynics have claimed that the real motivation for Social Security was that younger folks needed the jobs the geezers wouldn't give up, so if we could just bribe the geezers into retiring...
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Old 02-25-2009, 03:43 PM   #6
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... so if we could just bribe the geezers into retiring...
I did. Pay up.
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Old 02-25-2009, 03:44 PM   #7
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I did. Pay up.
Apparently, it worked...
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Old 02-25-2009, 03:46 PM   #8
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Funny you mention that, because some cynics have claimed that the real motivation for Social Security was that younger folks needed the jobs the geezers wouldn't give up, so if we could just bribe the geezers into retiring...
Define geezer...
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Old 02-25-2009, 03:49 PM   #9
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Funny you mention that, because some cynics have claimed that the real motivation for Social Security was that younger folks needed the jobs the geezers wouldn't give up, so if we could just bribe the geezers into retiring...

You can't have it both ways.. unless you find a way to get the "boomers" to drink the kool-aid.
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Old 02-25-2009, 03:55 PM   #10
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Define geezer...
If you have to ask, you probably are one.
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Old 02-25-2009, 03:57 PM   #11
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If you have to ask, you probably are one.
Crap!
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Old 02-25-2009, 04:24 PM   #12
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You can't have it both ways.. unless you find a way to get the "boomers" to drink the kool-aid.
I have a plan with no kool-aid required.

Deathgrip on your job, and refuse to go home?
Face the qualified unemployed slob , in thunder dome.

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Old 02-25-2009, 05:26 PM   #13
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Funny you mention that, because some cynics have claimed that the real motivation for Social Security was that younger folks needed the jobs the geezers wouldn't give up, so if we could just bribe the geezers into retiring...
I did that but no new job opened up for a whippersnapper. Geezer tax! Watch out, we're a voting bloc.
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Old 02-25-2009, 05:58 PM   #14
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All along, I'd thought the "vast hordes of real-estate wealth" idea was based on the rise in value of people's parents' homes, which the children have been and continue to inherit at a stepped-up value basis, so it is basically tax-free moolah. So someone's parents' home, which the parents bought for $15K in 1962, is only worth $300K now instead of $500K? Still seems like unearned (by the children, anyway) wealth to me.

Honestly, I don't feel any poorer because the place where I live is worth less than it was a couple years ago. Sometimes I feel poorer because of what it costs to live here, though.
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Old 02-25-2009, 06:46 PM   #15
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Hmm. I've seen some deterioration in my home value (maybe 40-60K, tough saying since I ain't selling). But, I've seen over 75K loss in my 401Ks, so not feeling the real estate wealth pinch.
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Old 02-25-2009, 07:33 PM   #16
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My 401k is down more than my house is worth...
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Old 02-25-2009, 08:34 PM   #17
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My 401k is down more than my house is worth...
My retirement accounts are down by double the value of my house.
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Old 02-25-2009, 08:41 PM   #18
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My retirement accounts are down by double the value of my house.
My investments are down double the value of my house after my house declined by one third . . . oh never mind.
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Old 02-25-2009, 10:51 PM   #19
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We live in a nice motorhome instead of a house. We could have bought six more fancy diesel pusher motorhomes for the amount that evaporated from our investments.

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Old 02-26-2009, 07:35 AM   #20
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\For early baby boomers, those between the ages of 55 and 64, the losses were not quite as steep but still came to 38 percent of net wealth, with the median wealth falling to $140,000,
Sometimes I forget that those of us posting on the ER Forum are atypical. It is difficult to even imagine being in the 55-64 year old category, with wealth of only $140K.
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