Zeev's Turnips Patch-No Politics (ZEEV)

[Emptyhead]

Joe

from that article you posted;

"Your typical 50-year old, middle class American isn't prepared to
retire without a lot of help. In fact, most baby boomers will never even pay off their mortgages. Lawrence Capital Management notes in the last 19 quarters total mortgage debt increased by $3 trillion (+58%). To put this in perspective, prior to 1997, it took 13 years to add $3 trillion in mortgage debt. Or, said another way, before 1997, around $50 billion a quarter was being borrowed against homes. Today the run
rate is near $200 billion per quarter, or four times more. Household
borrowings now total $8.2 trillion in America and they continue to
grow at near double-digit rates"

It is amazing how when one first looks at the numbers many things come to mind,but the two big thoughts I have are Lowest interest rates in 35years and immigration. The idea the baby boomers,those who have already paid off homes and those who are very close to doing so,need not to. Borrow against and send kids to college,buy second home,brand new $95K boat,whatever come to mind. Afterall,the cost to borrow with a write off is almost 4%!!! College loans are not that cheap or are they :) This is exactly what the FED whats everybody to do. As for the long term consequences? Oh baby,that is for another discussion another time.