In a few years, it will become obvious. The liquidity crisis was engineered to clean out the retirement accounts of the Baby Boomers. The Baby Boomers have been the majority shareholders in our economy since the 1960s. Reluctantly, they have been saving up for retirement.
We find ourselves five years before the first of them hit 65, the big target goal for retirement. Their portfolios are stuffed with bonds, stocks, and 401K ready to carry them through the next 20-30 years of their life. They are hanging like the Sword of Damocles over the head of the financial markets.
Now, as the first Boomers start to retire, the market collapses. All their fat little accounts are wiped out, either through devaluation, failure, or collapse. The fund managers, who are leveraged to the hilt in rotten assets, are hiding the failure and hoping the Boomers don't figure it out. But... it's too late. The sub prime rot has invested every aspect of our economy.
Let's hope they do not realize it or we'll see the largest transfer of wealth in the world's history.
But I'm going to tell my Dad.... ;)
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3 comments:
This has been my hypothesis from the beginning. That the current events are designed to steal the savings of the baby boomer generation. It is also a way to destroy the middle class by enslaving them to the bankers.
We all know the financial system is flawed by design to transfer wealth to the elite by means of fiat currency and fractional reserve banking.
I fear there is much more than money at stake here for the majority of the population. Out of the chaos that will arise when this great depression hits will come order. The order will be our enslavement and servitude to the elites who control the flow of money, food, jobs and all the other things required to live.
Novus Ordem Seclorum. This financial crisis has been created through deflation and very soon an inflationary period to bring North America to it's knees in order to move the agenda forward.
There is more than financial troubles on the horizon and I fear there will be more war and destructive / tyrannical foreign policy under the pretense of preserving our "way of life".
The empire is in it's death throes. It is important that we ensure the order that comes out of the chaos is the enlightenment to the true causes of this financial crisis and the knowledge that we don't need the bankers and fiat currencies anymore to enslave mankind.
It is time for a change, we must stand together and say "Never Again" will we let them steal all our wealth and the futures of our children.
Ok, this is my first time commenting... Thank you for trying to help your fellow American with your economic insights. I've been reading your site for five months. There is a man named Peter Schiff at europacific.net. He is an excellent macroeconomist. He predicted all this mess because of his amazing understanding of the economy. I hope you check him out. He helps Americans also. Thanks again. Sincerely, Dee
Please let me know if I understand this correctly.
A) Baby Boomers save for retirerment during their working years
B) Baby Boomers retire and sell off their assets to support their retirement
C) The asset sell-off reduces demand and drives down prices for stocks and other investment vehicles.
D) Baby Boomers end up with much less money for retirement than they thought they had
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Obviously this doesn't factor in the current banking crisis which will make the problem much worse.
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