How Will the Baby Boomers Liquidate Their Assets?
The concept of having a large boom in one generation without having that for the next generation has always caused problems. Not only do social programs like Medicare or Social Security going to face some serious issue from this generational imbalance but Baby Boomer’s own assets are going to face a liquidity problem. What happens if these assets can be liquidated in the market place? Quite a few people facing retirement have build up assets in their homes as well as investments in the stock market. Typically the idea is that you liquidate or sell off your assets into cash so that you live on that money during your retirement. With everyone who sells an asset there must be a buyer on the other side to exchange the good for currency. If there is not a buyer, this is a problem. The reality is that the next generation does not have enough money to purchase the Baby Boomers’ assets. There isn’t a logical way for all these assets to be turned into cash because there won’t be buyers of these
