Once, Twice, Three Times . . . You're Screwed!

Interesting piece today in Bloomberg on how a record number of folks over 65 are continuing to work.

http://www.bloomberg.com/news/articles/2016-05-13/-i-ll-never-retire-americans-break-record-for-working-past-65

Why you ask?  Silly question.  You know the answer - THEY NEED THE MONEY!  60% surveyed say they need the money.  And as Bloomberg points out, the financial crisis in 2008 and the tech boom/bust in 2000 destroyed the retirement savings of baby boomers, many of whom were probably conservatively invested in the past seven years as retirement neared, so they did not benefit as much from the most recent market recovery.

So 2000 is once and 2008 is twice.  Where is the third time?  The third time is our friends at the Fed.  With ZIRP as the mandate for over 80 months, baby boomers who still had savings have been getting virtually no return on these savings, so they have to keep working.

And here is the true irony in all this.  The job market participation rate of baby boomers is very high and the participation of those who should be working the jobs is very low, so those making the money are those needing to save every penny they can, meaning they ain't spending their dough no matter what the Fed does.  Janet just scratches her derriere wondering why there is not more spending when unemployment is so low as she is missing the picture.  She just screwed the boomers out of retirement funds so they aren't going to spend and they are taking the jobs from those who might.  Meanwhile those graduating college who might actually qualify for good paying jobs are busy paying off their first mortgage, a/k/a student loans, and have little left to buy homes or spend foolishly. 

http://www.bloomberg.com/news/articles/2016-05-13/student-debt-is-eating-into-the-household-budget

And then there is that whole shift in the employment market to lower paying service sector jobs that is not helping much either.  There does not seem to be any obvious end in sight to this cycle and the Fed is clueless to trying to stop it even if they wanted to.

"Hello, welcome to stupid Fed policies.  How might I help you/"