Downsizing the American Dream
No stimulus plan will get Boomers to spend.
I grew up in a New England mill town. It was a very prosperous town through the 1960s, but by the 1970s, the mills started shutting down and moving South. It wasn't a good time after the mills began to close. I was lucky: My father ran one of the mills, and we lived on top of the hill, upwind from it. I was able to go to a good college, and I moved away.
I still live on the hill - the big one between the Atlantic and the Pacific. It feels like the 1970s, -- it's time to move -- except there's no place on the big hill that looks any better.
If all the mills on the big hill close, how will that be different then what happened to my hometown?
I'm a Baby Boomer, just 3 years away from my first Social Security check. My wife and I did all the typical Boomer stuff: country clubs, fancy foreign cars, wine cellars, Cuban cigars, exotic vacations, etc.
I'm a trader, but I spend a lot of time looking at macro events and trends, hoping to figure out which way the wind is blowing. Right now, the wind is blowing hard in the faces of the boomers, and the National Boomer Forecast Center is looking in the back closet for the hurricane flags.
The problem, of course, is that there are too many of us. You can't really blame us for being here (it was all that unprotected sex our parents had), but we've had an unprecedented influence on the economy since 1975 or so. As the proverbial pig in the demographic python, we were in the snake's stomach for a long time - and for a long time, we were a positive contribution to the global economy. China, you can thank us.
The information on this website solely reflects the analysis of or o=
pinion about the performance of securities and financial markets by the wri=
ters whose articles appear on the site. The views expressed by the writers =
are not necessarily the views of Minyanville Media, Inc. or members of its =
management. Nothing contained on the website is intended to constitute a re=
commendation or advice addressed to an individual investor or category of i=
nvestors to purchase, sell or hold any security, or to take any action with=
respect to the prospective movement of the securities markets or to solici=
t the purchase or sale of any security. Any investment decisions must be ma=
de by the reader either individually or in consultation with his or her inv=
estment professional. Minyanville writers and staff may trade or hold posit=
ions in securities that are discussed in articles appearing on the website.=
Writers of articles are required to disclose whether they have a position =
in any stock or fund discussed in an article, but are not permitted to disc=
lose the size or direction of the position. Nothing on this website is inte=
nded to solicit business of any kind for a writer's business or fund. M=
inyanville management and staff as well as contributing writers will not re=
spond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter