Friday, March 26, 2010

boomers fighting me for my job

Sometimes it helps to get back to the fundamentals. Michael Shedlock has shed some light on the implications on the housing market as a result of boomers staying in the work force.
# The labor pool participation rate will stay elevated instead of contracting as much as one might have thought. In turn ...
# The unemployment rate will stay elevated longer than economists think.
# Kids out of college will have a harder time finding jobs.
# Kids out of college will be forced to move back in with their parents.
# Kids out of college will have no way of paying back college loans.
# Parents who co-signed for their kids education will come to regret it.
# The above factors will pressure discretionary spending of both boomers and those just out of college.
# Those out of college will postpone family building.
# Postponement of family building will further pressure housing prices.
# Bankruptcies, foreclosures, credit card defaults, and walk-aways will continue longer than economists think.

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