I think you've just created a whole new level of meaning there Herb
But I have nothing against the boomers - hell, Mum and dad are boomers - and as individuals they've done nothing wrong. Collectively, their seeking of unearned income is placing ever-increasing pressure on their own decendents, but that isn't confined to the boomers. They just happen to hold around half of Austraia's investment property, while making up a rather smaller percentage of the population, the desire to own more houses than they can live in so that they can benefit financially in the here and now making it ever more difficult for those coming along just to put a roof overhead.
There's some inequality right there for you but like I said, it isn't really anyone's fault and very few people mean to do harm.
Sure did, and while the sky looked bearish the rain actually held off. I'm not a huge fan of amusement parks but zombie laser tag was great and I recommend it highly. At 41 I'm not quite as quick on my feet as I was 10 years ago and ended up getting shot a few times but the young bloke and I had a blast. Might even go back tomorrow
But I have nothing against the boomers - hell, Mum and dad are boomers - and as individuals they've done nothing wrong. Collectively, their seeking of unearned income is placing ever-increasing pressure on their own decendents, but that isn't confined to the boomers. They just happen to hold around half of Austraia's investment property, while making up a rather smaller percentage of the population, the desire to own more houses than they can live in so that they can benefit financially in the here and now making it ever more difficult for those coming along just to put a roof overhead.
The lion's share of the assets are always in the hands of those who have had longer to accumulate assets. The younger people are still accumulating.
In time, the older generation dies off and the assets pass to the new older generation.
If immortality is ever achieved, this is gonna be a big problem.
The truth will set you free. But first, it will piss you off. --Gloria Steinem AREPS™
The lion's share of the assets are always in the hands of those who have had longer to accumulate assets. The younger people are still accumulating.
In time, the older generation dies off and the assets pass to the new older generation.
If immortality is ever achieved, this is gonna be a big problem.
I wouldn't have said that's how it's working in this case though miw. The whole idea is that assets do not get passed down - they are flogged off in order to fund a lavish retirement. There's nothing wrong with that in itself, it's just that a long period of easy credit has led to a great surge in speculative buying which has kept inflating the cost of owning the roof overhead to the end that for it to keep working it has had to be supported by ever-lower rates of interest. This is great news for those retiring but shithouse for coming generations - they are not going to be inheriting assets, they are inheriting endlessly ballooning housing costs.
I think that was the point of this thread - when opulence is bought with borrowed money, it ultimately has to be paid back. But that responsibility falls on our children in this case. We get the party while they get the hangover.
I wouldn't have said that's how it's working in this case though miw. The whole idea is that assets do not get passed down - they are flogged off in order to fund a lavish retirement. There's nothing wrong with that in itself, it's just that a long period of easy credit has led to a great surge in speculative buying which has kept inflating the cost of owning the roof overhead to the end that for it to keep working it has had to be supported by ever-lower rates of interest. This is great news for those retiring but shithouse for coming generations - they are not going to be inheriting assets, they are inheriting endlessly ballooning housing costs.
I think that was the point of this thread - when opulence is bought with borrowed money, it ultimately has to be paid back. But that responsibility falls on our children in this case. We get the party while they get the hangover.
You bought the meme.
Any expressed market opinion is my own and is not to be taken as financial advice
The lion's share of the assets are always in the hands of those who have had longer to accumulate assets. The younger people are still accumulating.
In time, the older generation dies off and the assets pass to the new older generation.
If immortality is ever achieved, this is gonna be a big problem.
But you are ignoring the increased lonjevity. That will eat up the assets.
Lef-tee
25 Sep 2014, 09:18 PM
I wouldn't have said that's how it's working in this case though miw. The whole idea is that assets do not get passed down - they are flogged off in order to fund a lavish retirement. There's nothing wrong with that in itself, it's just that a long period of easy credit has led to a great surge in speculative buying which has kept inflating the cost of owning the roof overhead to the end that for it to keep working it has had to be supported by ever-lower rates of interest. This is great news for those retiring but shithouse for coming generations - they are not going to be inheriting assets, they are inheriting endlessly ballooning housing costs.
I think that was the point of this thread - when opulence is bought with borrowed money, it ultimately has to be paid back. But that responsibility falls on our children in this case. We get the party while they get the hangover.
There is actually something wrong with it. Most boomers are under estimating how long they will live, the cost of aged care etc. Remember, boomers only had super for half their working life and the aveage super is only approx $80k for men and hardly anything for the women. Their biggest asset is their house and many are using their lump sum super to pay off the mortgage and then rely on the pension. As Joe said, 80% will require full or part pensions. So do we tax the diminished pool (% wise) of workers more or force retiress to use some of the equity in their PPOR to fund their retirment. I opt for not taxing the workers more.
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