- While the children collectively sit on 75 trillion dollars of wealthThis has not been distributed evenly, which means that many cannot go out and instead it should remain in their homes. This weighs the housing market by curbing the stock, according to the Wall Street Merridith Whitney analyst.
Children are running in the housing market because most of them cannot get out of their homes, according to Merridith Whitney, “Oracle Wall Street” who predicted the great financial crisis.
in Interview on Bloomberg TV On Wednesday, she said that many Americans who suffer from financial hardship were borrowing against their homes, and 44 % of household shares are removed by the elderly, “which is not intuitive. It’s crazy, right?”
This contradicts the typical narration of children with children sitting on huge amounts of accumulated wealth throughout their lives, which extends over unprecedented economic expansions and the conclusions of the stock market.
As a result, the elderly who have a lot of money have an advantage in the narrow housing market, which represents 42 % of all home buyersWhile the millennial generation represents 29 % although the younger generation is in the main purchase years.
But while most buyers are born, this does not mean that most of the newborns have a giant pile of money.
“I swear it into different groups,” Whitney said. “So the adults that everyone think” Boamers have all this money ” – this is a small part. The elderly live on a salary.”
Certainly, births are combined 75 trillion dollars of wealth. But this has not been distributed evenly, and Whitney is estimated that only one out of 10 elderly people can afford the costs of living facilities.
As a result, many have to stay in place and age in place. (The high mortgage rates also created an “lock” effect as homeowners who entered the market when the prices are now low in buying a new house with high borrowing costs today.)
“This is one of the problems of housing stock,” Whitney told Bloomberg. “They reside in their homes longer because they cannot go out.”
Unemployment expectations for 2025: 6 %
Meanwhile, you expect the economy to slow down in the trade war of President Donald Trump, especially in the sectors of retail and hospitality, and expected the unemployment rate to rise to 6 % by this fall, up from the current level of 4.2 %.
This is still much lower than 10 % of the unemployment rate during the great financial crisis, and Whitney does not see similarities between today’s economy during the crisis.
Part of the reason is that banks are much better than they were at the time, when mortgages without the presidency weighing the public budget of banks.
But she sees a “moderate, moderate” stagnation that Wall Street has not yet fed.
“The major banks will not participate now, but the consumer is already struggling and will struggle more. This will translate into job losses,” Whitney said.
This story was originally shown on Fortune.com
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