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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: GST who wrote (58594)4/18/2006 3:18:24 PM
From: CalculatedRisk  Read Replies (2) of 110194
 
From a pure numbers perspective, the wealth transfer is from a relatively small cohort (the original "baby bust" - the people born between 1925 and 1940) to a large cohort (the Boomers). Therefore this will be a small transfer of wealth on a per capita basis.

The large transfer will occur when the Boomer pass their wealth onto the next generation. That will be from the large boomer cohort passing wealth onto to the more recent "baby bust".

That is just the way the numbers work.

So its more accurate to say we are in the midst of a small per capita wealth transfer (and per capita is what matters).

**NOTE: Many people are unaware of the original baby bust. You can look it up in the Census numbers.
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