Rockslinger said:
Aren't these people now in their 80's and 90's? Aren't they suppose to transfer their wealth to their children and grandchildren? You know, the trillion dollar intergeneration transfer of wealth. Please don't tell me all that wealth was in GM stock. Did you know that a house that sold for $5,000 in High Park in 1954 is now worth north of $500,000?
You may be right. I'm no economist. But I think that when things like inflation are accounted for, there isn't a whole lot of transfer of wealth that takes place. Note that any wealth handed down from 80 and 90 year olds is swallowed by the much larger baby boomer generation.
We're already contemplating the inability for the current generation to sustain baby boomers when they begin to retire. The baby boomers haven't saved anything. Maybe this won't be a problem because they'll be forced to work into old age until they drop dead. Whatever the case, it's not a pretty picture.
Anyway I hope you're right.