A Coming Generational Conflict

Discussion in 'The Okie Corral' started by reniram, Sep 23, 2020.

  1. reniram

    reniram

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    Every week Barrons has a selection of market views from various financial institutions. This week they had one from Deutsche Bank called A Coming Generational Conflict which caught my eye.

    Quote:

    The widening generational divide should be a key source of alarm investors, financial markets and society as a whole. Young people perceive themselves as losers on issues ranging from housing to climate change to student debt. This anger is manifesting itself in political outcomes, with elections around the world increasingly fought along generational lines.

    We believe this intergenerational conflict will get worse in the near term. Aging populations are tilting the balance further against the young. Expensive house prices are continuing to create anger and resentment. And the Covid-19 pandemic, which has disproportionately hurt the young economically, risks inflaming this resentment further.

    There are three paths down which this conflict may travel. The first is a natural resolution, where large falls in asset prices set against demographic change narrow the generational divide without external intervention.

    The second scenario sees a political party elected with strongly redistributionist policies. Some countries have already seen strong performances from such parties, and if this becomes more widespread, investors can expect an abrupt and significant upheaval in housing and asset markets, tax systems, climate policy and many other areas. This scenario becomes more likely toward the end of the decade as younger voters exceed those in older generations.

    Unquote.

    Another social change significant for those of us on GT could a more permanent change in the way the Second Amendment is viewed. Obviously all of us have anecdotal evidence to the contrary, but reading this gave me food for thought. What do you all think?
     
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  2. Upgrayedd

    Upgrayedd

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    All they need is a good spanking.
     
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  3. Doc Holliday

    Doc Holliday CLM

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    Biggest ripoff is buying a house, made with $40K in materials and illegal alien labor, then sold to you for the low low price of only $275K + 30 years worth of interest. Financial slavery for most of your life, yet most people are overjoyed to sign the line and get the keys, with no complaints at all. Work all your life to pay it off, and just when you've made the last payment and are about to retire and relax in your home that you FINALLY own, you die and it gets sold to someone else for another 30 years of payments to the bank.
     
  4. jmohme

    jmohme

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    And there is the problem. Most of them have never been spanked.
     
  5. Hoochrunners

    Hoochrunners

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    News flash. It’s not coming, it’s already here. A lot of retirees don’t have a pot to piss in.
     
  6. RenoF250

    RenoF250

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    From the surveys I have seen most people period don't have a pot to piss in. They have over extended themselves and are way in debt to pay for all of the crap they have to have. And that debit is your fault and if you don't have any it is because you took advantage of someone.
     
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  7. WT

    WT Millennium Member

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    As I said in an earlier thread, the young feel that capitalism has failed them. As a result, they are flocking to socialism.

    I expect GT'ers will assign blame. I would rather see some possible solutions to their problems.
     
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  8. bdcochran

    bdcochran

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    1. Comment on Deutche Bank. Take the time to read about the years of mismanagement, the record fines, the laundering of monies. Corrupt and on the verge of failure. Doesn't negate comments on generational conflicts, just take the time and read about the Bank.
    2. Generational conflict.
    The source is deliberate tax and fiscal policies. These are designed to have people borrow and not save or invest.
    When a 3% downpayment is required for a home that will have the mortgage sold to a government sponsored entity, AND, you are now permitted to borrow the 3% down from relatives, a person is a fool not to consider buying a house.
    When the federal reserve system permits its members to loan money on car purchases that can be repaid over 7 years, a person is a fool not to consider buying a car.
    When the federal government encourages you to borrow money for college, you have a problem. Go to your local college. Ask if the loan money is paid to the student or to the school. Also ask an administrator if it is not true that students will take the loan money and drop out of school for a term.
    3. Fiscal policy. It was a very long time in my life before I saw a $50 bill, much less met a person carrying a $100 bill in his wallet. Your governments either pay back money borrowed, or it inflates the currency so that the value of its accumulated debt is reduced. You now have trillions spent by the federal government in the last 6 months.
     
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  9. BBMW

    BBMW

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    If a 65YO tries to spank a 35YO, the results may not be what was desired. In point of fact, that may be the how the whole generational divide thing turns out. Wait until Social Security goes broke, and they need to raise the SS tax rate to to keep it running.

     
  10. BBMW

    BBMW

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    $275K Where can you get a house that cheap?

     
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  11. Aurora

    Aurora

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    There are no absolute sinners and no absolute saints. Everyone involved bears some degree of responsibility for what is happening.

    Young people often forget that older folks were young and poor at one time. They built up what they have over time and many young people forget this. They brush this off when you ask them what they're doing to build a future for themselves.

    Older people are living (and judging) from a perspective that was developed in a world that doesn't exist anymore. Student debt, the TRULY out of context threat posed by AI, the shocking costs of everything, etc. Older people brush this off when you ask them how to deal with these things.

    Far, far too many people are living with their heads in the sand.

    V.
     
  12. racerford

    racerford

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    So you think renting is a better financial deal? Have you done the math? The other possibility is to buy the land buy the materials and build it with a friend or relative. My Grandfather and his brother-in-law did just that. Build as small a house as you can live in.
     
  13. BBMW

    BBMW

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    I watched something last night about the whole "participation trophy" mentality. The millennials and later were brought up this way. They were supposed to be automatically successful. They weren't supposed to have to work for it. Now they been slapped upside the head with reality. They don't like it and want it to stop. That's what's going on here.

     
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  14. Aurora

    Aurora

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    In a place with limited economic opportunities.

    V.
     
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  15. BBMW

    BBMW

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    There are lots of places where you can buy an old run down house for cheap, fix it up, and build a 5hitton of equity. They may not be in the hippest, fastest growing areas though.

     
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  16. Dave514

    Dave514

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    You should get into house building instead of bloviating.
     
  17. Darkangel1846

    Darkangel1846

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    The young adults don't like to work because it gets in the way of their Quality fun time. So they call in sick a lot. They don't seem to think ahead. They will quit a job without having another job lined up and have the excuse of just getting unemployment until another simple job comes along.
     
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  18. Doc Holliday

    Doc Holliday CLM

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    I know the truth hurts you and makes you cry at night about overpaying, but don't use $5 words with your Fiddy Cent education.
     
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  19. Dave514

    Dave514

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    Lol, I built a house. And I have every receipt. Saying you can build a house for $40k plus labor and sell it for $275,000 is in line with your endless hyperbole.
     
  20. racerford

    racerford

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    He is simply say that if you think building houses is so profitable, and easy, you should do it your self. The number of bankruptcies among small builders suggests otherwise.
     
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