Sunday, March 23, 2008
This USAToday story about the rise and fall of many baby boomers is, unfortunately, probably a sign of things to come.
The plan wasn't very sound, when you think about it, but it sure worked pretty well for a while - have everyone buy lots of stuff that they don't need with money they don't have until everyone is in debt up to their eyeballs.
As long as the economy was booming, stocks were rising, and real estate prices only went up in one direction - up - the plan worked pretty well.
Now that none of those things are happening anymore, baby boomers scream, "Mommy! Daddy! Make it better."
Economy compels some to move home with parentsThese are 40 and 50 year old "children" indeed.
After being laid off from her job as an events planner at an upscale resort, Jo Ann Bauer struggled financially. She worked at several lower-paying jobs, relocated to a new city and even declared bankruptcy.
Then in December, she finally accepted her parents' invitation to move into their home — at age 52. "I'm back living in the bedroom that I grew up in," she said.
Taking shelter with parents isn't uncommon for young people in their 20s, especially when the job market is poor. But now the slumping economy and the credit crunch are forcing some children to do so later in life — even in middle age.
Financial planners report receiving many calls from parents seeking advice about taking in their grown children following divorces and layoffs.
Kim Foss Erickson, a financial planner in Roseville, Calif., north of Sacramento, said she has never seen older children, even those in their 50s, depending so much on their parents as in the last six months.
"This is not like, 'OK, my son just graduated from college and needs to move back in' type of thing," she said. "These are 40- and 50-year-old children of my clients that they're helping out."
This week's cartoon from The Economist: