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Was the millennial dream killed by QE?

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Three decades of privatisation, globalisation and deregulation killed the millenial dream.

QE is a failed attempt to refloat the Titanic.

tony-blair-and-margaret-thatcher.jpg

 

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...It was money that was distributed in order to spend, to keep things ticking over.....the only problem with it, it wasn't distributed evenly/equally......those at the top/front of the queue got first pickings.......by the time some of it had trickled down, by then become highly diluted and worth a lot less....;)

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It's great to see QE and artificially-inflated house prices being part of a mainstream BBC article.

It's also great to see the current high level of intergenerational unfairness in the UK highlighted in neutral terms (not just dismissing boomers as greedy, or dismissing millennials as entitled, but recognizing that the financial position of both groups has been driven largely by events outside their control in the wider economic environments that they have lived through)

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2 minutes ago, scottbeard said:

It's great to see QE and artificially-inflated house prices being part of a mainstream BBC article.

It's also great to see the current high level of intergenerational unfairness in the UK highlighted in neutral terms (not just dismissing boomers as greedy, or dismissing millennials as entitled, but recognizing that the financial position of both groups has been driven largely by events outside their control in the wider economic environments that they have lived through)

+1

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On 09/03/2019 at 22:21, zugzwang said:

Three decades of privatisation, globalisation and deregulation killed the millenial dream.

Yes, the millennial dream was killed while Millennials themselves were mostly still children. Take a Millennial born in 1987, they turned 20 in 2007. Between 1996 and 2007 house prices went up 3-fold in the UK on average and more like 5-fold in London/SE. They emerged into the adult world with their housing prospects already screwed.

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You could make a case that the start of all this was 15 August 1971 when the US came off the gold exchange standard and ushered in the age of full blown fiat currencies. Since then more or less everything has been debauched and what we see is the evermore frantic attempts to keep the whole system from collapsing.

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8 minutes ago, crouch said:

You could make a case that the start of all this was 15 August 1971 when the US came off the gold exchange standard and ushered in the age of full blown fiat currencies. Since then more or less everything has been debauched and what we see is the evermore frantic attempts to keep the whole system from collapsing.

I have made this case many, many times on various threads. 

The root cause of everything that has happened recently (and all the other financial issues over the years) is the decision by Nixon in 1971.

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47 minutes ago, scottbeard said:

It's great to see QE and artificially-inflated house prices being part of a mainstream BBC article.

It's also great to see the current high level of intergenerational unfairness in the UK highlighted in neutral terms (not just dismissing boomers as greedy, or dismissing millennials as entitled, but recognizing that the financial position of both groups has been driven largely by events outside their control in the wider economic environments that they have lived through)

Yes it's refreshing to see some nuance. 

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I am not sure the boomers have benefited as much as it appears on the "paper value"

Sure some did, but many pensioner are also savers; and I am often amazed that so many pensioners would complain about bad returns on their saving/pension, lack of cash without realising that cheap interest rate, which made many pensioners "property wealthy" on the paper, is also what destroyed their saving/pension return.

In my idea world, people would retire with a £250K property (mortgage free) + a £250k pension pot earning 5% annual interest. It would be a non-luxury, but good and simple life. But no, what's the FUN in that! Instead, let them retire with a £500K property and practically NO saving! Let them equity release through life time mortgages and give the house back to banks when they die.

Maybe the banks have planned this all along?

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4 hours ago, peter_2008 said:

I am not sure the boomers have benefited as much as it appears on the "paper value"

Sure some did, but many pensioner are also savers; and I am often amazed that so many pensioners would complain about bad returns on their saving/pension, lack of cash without realising that cheap interest rate, which made many pensioners "property wealthy" on the paper, is also what destroyed their saving/pension return.

In my idea world, people would retire with a £250K property (mortgage free) + a £250k pension pot earning 5% annual interest. It would be a non-luxury, but good and simple life. But no, what's the FUN in that! Instead, let them retire with a £500K property and practically NO saving! Let them equity release through life time mortgages and give the house back to banks when they die.

Maybe the banks have planned this all along?

Most of them only benefited in the sense that they could afford to buy then pay off houses early that a person of similar age now could not even get a mortgage for, never mind have a hope of paying it all off during their lifetime.

https://www.rightmove.co.uk/property-for-sale/property-70025719.html

30-40 years back, that would have been a second step home, maybe 5 times the average salary. Now it is 50 times the average salary.

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If major had got in instead of Blair the national debt could have been paid off in the 1990's. So can't blame nixon 1971. 

What millennialshe grew up with was boomer mummy and daddy flashing loadsamoney and mewing their way through a life of designer clothes and exotic holidays. (If they were lIving the dream). 

By the time they reached 18,all  they got was student debt and a minimum wage world. 

Winners, for millennials,  are the dullards  with no student debt or the slags who opened their legs for a council house. 

What was that show about boomers and their children during their childhood? . Had joanna lumLey  in it. Absolutely fabulous. 

Contrast that  to their adult reality. 

 

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Just now, peter_2008 said:

I am not sure the boomers have benefited as much as it appears on the "paper value"

Sure some did, but many pensioner are also savers; and I am often amazed that so many pensioners would complain about bad returns on their saving/pension, lack of cash without realising that cheap interest rate, which made many pensioners "property wealthy" on the paper, is also what destroyed their saving/pension return.

In my idea world, people would retire with a £250K property (mortgage free) + a £250k pension pot earning 5% annual interest. It would be a non-luxury, but good and simple life. But no, what's the FUN in that! Instead, let them retire with a £500K property and practically NO saving! Let them equity release through life time mortgages and give the house back to banks when they die.

Maybe the banks have planned this all along?

Nailed it......like savings the homes will have to be spent......a state pension will not pay its way, it certainly will not cover for rent.;)

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15 hours ago, peter_2008 said:

I am not sure the boomers have benefited as much as it appears on the "paper value"

Sure some did, but many pensioner are also savers; and I am often amazed that so many pensioners would complain about bad returns on their saving/pension, lack of cash without realising that cheap interest rate, which made many pensioners "property wealthy" on the paper, is also what destroyed their saving/pension return.

In my idea world, people would retire with a £250K property (mortgage free) + a £250k pension pot earning 5% annual interest. It would be a non-luxury, but good and simple life. But no, what's the FUN in that! Instead, let them retire with a £500K property and practically NO saving! Let them equity release through life time mortgages and give the house back to banks when they die.

Maybe the banks have planned this all along?

True although some think that they are rich because they live in expensive houses.

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9 hours ago, 24gray24 said:

Winners, for millennials,  are the dullards  with no student debt

Student debt doesn't make much difference. £50k of student debt is irrelevant when the average house in your town costs £500k.

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Well I was brought up to live within my means and save to buy things, so yeah my millennial (just about) dream wasn't just killed, it was gang raped first.

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On 11/03/2019 at 11:14, Errol said:

I have made this case many, many times on various threads. 

The root cause of everything that has happened recently (and all the other financial issues over the years) is the decision by Nixon in 1971.

The Big Society - and of course the Vietnam War - was expensive....

ZH has a piece similar to the OPs...

https://www.zerohedge.com/news/2019-03-11/six-years-qe-transformed-young-americans-socialist

"With younger generations financially penalized under QE to prevent the economy from a deflationary collapse, the Fed may have inadvertently transformed tens of millions of young Americans into socialist."

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4 hours ago, dryrot said:

The Big Society - and of course the Vietnam War - was expensive....

ZH has a piece similar to the OPs...

https://www.zerohedge.com/news/2019-03-11/six-years-qe-transformed-young-americans-socialist

"With younger generations financially penalized under QE to prevent the economy from a deflationary collapse, the Fed may have inadvertently transformed tens of millions of young Americans into socialist."

Socialism for the rich vs socialism for the poor.

We're all socialists now. ;)

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