Hey Jesconomists

Running the world's finances through a centralised plan was always going to ensure a large risk for a single point of failure. By having an artificial flow of capital and velocity of money we've set ourselves up in a system that isn't agile enough to move if changes occur. One of the most significant economic changes to happen in the next few years is the retirement of the baby boomers. 

![Baby Boomer Retirement Rate](https://image.businessinsider.com/59a9884679bbfdba408b742b?width=700&format=jpeg&auto=webp)

**Image source:** - [.businessinsider.com](https://www.businessinsider.com/impact-of-baby-boomers-retiring-on-the-economy-and-stocks-2017-9?r=UK)

## The boom cycle

The baby boomers were the single biggest generation on the planet and when they hit the working world they did so with a wave of confidence to the economy and growth was exponential. To put it simply it is a numbers game, the more people created the more there are to put to work, the more jobs are needed to manage the number of people, the more money gets moved around and with all this new labour, came borrowing, investing and much more. 

The economy kept growing and through a hot-handed fallacy we thought we could keep up this unsustainable growth but that was sadly impossible. Baby Boomers who gave birth to the next generation like Millenials had fewer kids which means less demand for various goods and services and fewer people entering the workforce to keep growth going.

![Labour force participation rate](https://media.businessinsider.com/images/530aaeb369bedd133d2c6d22-640-466.jpg)

**Image source:** - [businessinsider.com](https://www.businessinsider.com/baby-boomers-are-retiring-2014-2?IR=T)

## More and more baby boomers are opting out

As the population of baby boomers start to reach retirement age they become more conservative, they spend less, they do less, they liquidate their investments into cash and store it as they need to live on modest returns. As life expectancy has also gone up they don't know how long they are going to live and thus putting more pressure on the money they have saved.

## Came in with a boom but going out with a bang

Due to our heavily manipulated markets, it's already sitting on a knife-edge and as baby boomers continue to retire and pull their money from the system the governments will try to preserve it by buying up these equities and trying to prop up the market. They do not want to admit that the market needs to be reset, that a correction is needed and the longer they put it off the worse the correction will be. 

Stocks, bonds, houses and all other forms of traditional finance and savings mechanisms are wildly overvalued and for Millenials like myself there is very little room to invest where you can get a decent return. Sure there is precious metals and of course, cryptocurrency which I feel will be one of the saving graces of the new economy but those are both not traditional avenues for the average retail investor.

What I predict is Millenials will go one of two ways, horde cash which doesn't really help much but cover their living expenses for the future or just live from paycheque to paycheque and slip into debt until a correction happens. Baby boomers will also need to suck it up and sell at lower prices to survive and homes and other equities will continue to lose value as they need cash.

It is not going to be pretty its going to be a blood bath but there will be opportunities for those who have cash. They can pick up affordable housing as people foreclose, buying stocks in companies that service lower incomes will sore, such as fast-food chains. Open land for temporary housing and motor homes as well as shared commune facilities will become more popular. 

So either investing or starting a business that services low-income households or people will become a huge revenue driver going forward. 

## Let's connect

If you liked this post sprinkle it with an upvote or resteem and if you don't already, consider following me @chekohler
![follow me](https://steemitimages.com/0x0/https://cdn.steemitimages.com/DQmSfrQD1Y3vNAfxKRxkEV9wpYcbbVEvqrJ5JcwhUKAhbv2/chekohler.gif)
<hr>

|	Buy & sell STEEM   |	Donate LikeCoin For Free  |  Earn Interest On Crypto |
|	--------	|	--------	|	--------	|
| [![blocktrades.jpg](https://ipfs.busy.org/ipfs/QmTgDgND5V2APviW9S98heiM37EGcZcHiN8PZa82bRWv4u)](https://blocktrades.us?affiliate_id=3771ac44-8f5f-47f6-b8fc-a143ccc22118) | [![Likecoin](https://ipfs.busy.org/ipfs/Qmax2MU47GJdRjN9eyYSD2GiK6PfJKGdQZ5eVVuxsFdqzM)](https://button.like.co/cesc0410)|  [![cryptocom.jpg](https://files.steempeak.com/file/steempeak/chekohler/YXJUY7oD-cryptocom.jpg)](https://platinum.crypto.com/r/7svdqvmqx6)|