- While the baby boomers are collectively sitting at $ 75 trillion.This does not spread evenly, that is, many cannot afford to move and instead have to stay in their homes. This weighs the housing market, holding back inventory, reports Top Wall Street Medard Whitney analyst.
According to Medry Whitney, “Oracle of Wall Street”, which predicted a great financial crisis.
Y en Interview on Bloomberg Television On Wednesday, she said that many Americans who affect the cash borrowed against their homes, and 44% of the housing loans will receive the elderly, “that’s crazy.”
This is contrary to the typical stories of Baby -boomers sitting on a huge amount of wealth accumulated throughout life, which covered unprecedented economic expansion and boom on the stock market.
As a result, the elderly with a lot of money have an advantage in a dense housing market that takes into account 42% of all buyersWhile Millennials is 29%, despite the fact that the younger generation was at the very years.
But while most boomers buyers do not mean that most boomers have a giant pile of money.
“I divide it into different cohorts,” Whitney said. “So, the older one who believes that” boomers has all this money “is a small part. The elderly live salaries.”
To be sure of the booms collectively have $ 75 trillion in wealth. But this does not spread evenly, and Whitney estimates that only each of the 10 older can afford auxiliary services.
As a result, many are forced to stay old and grow old, she added. .
“This is one of the problems with the housing inventory,” said Bloomberg. “They stay in their homes longer because they cannot afford to move.”
Unemployment forecast at 2025: 6%
Meanwhile, it expects the economy to slow down the trade war of President Donald Trump, especially in the field of retail and hospitality, and predicts that the unemployment rate is up to 6% by this year compared to the current level of 4.2%.
This is still much lower than 10%that the unemployment rate suffered during the great financial crisis, and Whitney does not see the parallels between today’s economy during the crisis.
The part of the reason is that the banks are much better capitalized than when the mortgage loans in the size weighing banks’ balances.
But she really sees a “light, medium” recession in which Wall -Rate will not yet be the price.
“Big banks will not participate now, but the consumer is already fighting and will fight further. And this will lead to losses,” Witty said.
Originally this story was presented on Fortune.com
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2025-05-10 22:00:00
Jason Ma
