Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Fed worried that baby boomers are saving to much and not spending enough. Duh aren't they also worried about us running out of money? Maybe they just want us to give them our money and go away.
Federal Reserve officials say they’re concerned that retirees like the Rodwicks are blunting the impact of record easing aimed at creating jobs. The reason: Older people are more likely to forgo purchases of houses, cars and other big-ticket items that the Fed is trying to encourage with near-zero interest rates. And their numbers are growing, making the Fed’s task ever harder.
Quote:
The postwar generation is shifting spending toward education, mortgage debt and their adult children and away from entertainment, dining, furniture and clothes, according to a report last month from the National Center for Policy Analysis, a Dallas-based research group that advocates free markets.
Sometimes, just sometimes ... we need to lock the "researchers" in the closet until they learn to behave! When did baby boomers, or the equivalent of just retired persons go on a spending spree making big purchases? I don't remember much of that in my lifetime? I've been around old people all my life and I don't observe behavior different today than it wsa 40 years ago. Some people (the researchers) think too much about things just to make us worry.
Retireees anot doig anyhtig the others are not.At least in my area seelig home has really picked up as has new home buying. Never was over priced here tho really.Leasing a home has gotten very hard to find and apartment rents have really climb that reprots say is drivig the homebuyers.
This article is a perfect example of why I distrust the media. If you read Dudley's speech, it is clear he gave five reasons for a sluggish and consistently weaker recovery. ONE of the reasons was the large number of boomers, the vast majority of whom are not yet retired. He believes that they have cut back on their spending in preparation for a retirement with higher taxes, reduced social security benefits and significant changes to Medicare. But again, this was only one reason of five that was proffered by Dudley to explain the sluggish recovery. The Recovery and Monetary Policy - Federal Reserve Bank of New York
Please note that Dudley was not criticizing Boomers nor did he suggest that Boomers should start spending rather than save for retirement.
This article is a perfect example of why I distrust the media. If you read Dudley's speech, it is clear he gave five reasons for a sluggish and consistently weaker recovery. ONE of the reasons was the large number of boomers, the vast majority of whom are not yet retired. He believes that they have cut back on their spending in preparation for a retirement with higher taxes, reduced social security benefits and significant changes to Medicare. But again, this was only one reason of five that was proffered by Dudley to explain the sluggish recovery. The Recovery and Monetary Policy - Federal Reserve Bank of New York
Please note that Dudley was not criticizing Boomers nor did he suggest that Boomers should start spending rather than save for retirement.
Perfect example of unintended consequences. By taxing interest on savings 100% (the effect of Federal Reserve policies) they have suspended spending among savers (no income) and therefore reduced demand for goods and services, and therefore reduce the need to create jobs. The Feds are strangling the economy.
Of course, the Feds can always encourage banks to lend to people who don't save, but love to borrow and not pay back what they borrow. Which is the essence of the Fed's grand scheme in during the tech bubble (leverage buying and selling stocks) and the essence of the housing bubble (encouraging banks to lend to people who cannot afford a home). And it is the essence of the gigantic bond bubble that the Fed has created. Interestingly, the Feds are the biggest buyer of its own bubble. This should be interesting.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
