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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: tradermike_1999 who wrote (141)	10/24/2000 1:08:03 PM
From: quasar_1	Read Replies (1) \| Respond to of 74559

Transcendental TM... One question that is never asked about the baby boomers is what is going to happen when they stop putting money into their retirement accounts and begin liquidating parts of them so that they can retire, live, vacation, and move to Florida? So far the continual pouring of money into the markets by people in there 40s and 50s has created a stable pool of money to support the market. This has also happened in the real estate markets. Once they reach their 60s, which will happen by the end of the decade and they begin to withdrawal money from the market and sell off some of their real estate there will be deflationary aspect to the markets. If there are any signs of a downturn, these people whose retirement depends upon a rising stock market, will be tempted to liquidate their portfolios in the face of a financial crash. This group which has been supporting the market will eventually become a horrible drag on it. I'm talking within 10 years, not tomorrow. Right on TM. I concur completely. This reinforces the demographic argument. The Federal Reserve has always been more obsessed with inflation rather than deflation and it will be in the future. Believe it or not I have heard from a very knowledgeable friend of mine that the Fed's mission for much of its history was to counteract deflation not inflation. I don't have any supporting facts. It is true however that inflation really didn't become a problem in the US until the 70's. It would be interesting to find out if anyone else had heard this. Thanks for your reply! Quasar