OK Boomer; Normal friction or wealth and social inequality symptom

Discussion in 'Share Investing Strategies, Theories & Education' started by dunno, 18th Nov, 2019.

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  1. Gockie

    Gockie Life is good ☺️ Premium Member

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    The chapter samples of this book is interesting so I want to take this book out of a library.
    Anyway, its about why people succeed or not, based on scarcity.

    Scarcity
     
  2. Sackie

    Sackie Well-Known Member

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    That's one way to look at it.

    The other way is, what if I only achieved a tiny, tiny, fraction of that. Would I still be financially successful?

    At some point people need to say enough is enough. Even though life is not always fair, equal and pleasant, I will take full responsibility for making the best of my life with what I have to work with.
     
  3. mtat

    mtat Well-Known Member

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    Lots of posts and no mention of the housing market being an issue. I guess this is a property forum after all...

    90% of resentment from the younger generation comes from being priced out of the market. It's not the baby boomers fault per se, but of course it's easier to blame a whole generation.
     
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  4. kierank

    kierank Well-Known Member

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    Yep, I was priced out of the housing market when I was young.

    ... and that was over 40 years ago :eek:.

    I didn’t think to whinge about it (eg blame the Government, blame my grandparents, blame my parents, blame the banks, ...).

    I got on with life and made the most with what I had ;).

    Now I am being blamed ... :rolleyes:
     
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  5. Rugrat

    Rugrat Well-Known Member

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    Lol.
    I just love parents with just one baby who think they have this whole parenting thing figured out. Able to praise their own success and simultaneously caste judgement over everyone else.

    I was a perfect parent before I had kids. When I had just one 9mth old baby, I was pretty on point too. They also knew what 'no' meant. ;)
    Now that I have 6 kids, from toddler through to teenage years, I am happy to admit I don't have a clue what I'm doing most of the time and just making it up on the fly. So far it 'seems' to be working. But I'm not sure how much of that I can actually take credit for as a parent. They are all their own people, and I don't have as much control over them as I would like, and certainly not as much as others think I do.
    They all know very well what 'no' means, and that consequences follow after. Still doesn't mean they always do as they should or aren't willing to risk those consequences anyway.
     
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  6. Marg4000

    Marg4000 Well-Known Member

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    Nah, leave them alone!

    They will find out soon enough for themselves. We are all parenting experts until confronted by an enraged tantrum-throwing toddler. And teenagers are a whole different experience!
     
  7. spludgey

    spludgey Well-Known Member

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    I'd rather have a naughty kid (and boy, is he naughty!) than hitting my kid.
     
  8. mtat

    mtat Well-Known Member

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    [​IMG]
     
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  9. kierank

    kierank Well-Known Member

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    Then, if you are lucky enough, you are given grandkids and the world is all rosy again :D
     
  10. kierank

    kierank Well-Known Member

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    Why limit oneself to Melbourne property?

    Why limit oneself to wages?

    if I did that for the last 40+ years, I would be living as “poor as a church mouse”?

    I don’t understand why people put limitations/restrictions/constraints on their success :eek:.
     
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  11. mtat

    mtat Well-Known Member

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    ...

    Because 5 million people live there?

    Because most of the population earn approx. a median wage? (surprise surprise)

    I'm not concerned about my own success. I'm worried about all my peers and want the best for them. But I guess you wouldn't understand that.
     
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  12. spludgey

    spludgey Well-Known Member

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    Those figures are from 2013 as well @mtat the gap would have definitely widened since then.
     
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  13. Froxy

    Froxy Well-Known Member

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    Dont use facts, no one wants to hear them! Anyone who states these said facts is a complainer/soft/lazy.
     
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  14. Kelvin Cunnington

    Kelvin Cunnington Well-Known Member

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    Sorry - it was an attempt at being funny; someone else said they didn't read it - in response to someone else who said the boomers wouldn't read it...I thought Id see that and raise it! :D
     
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  15. Kelvin Cunnington

    Kelvin Cunnington Well-Known Member

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    yes; "ok, boomer"...I wish I could still be alive to hear those people who are currently saying that, in return get that thrown at them when its their turn in a few decades. "ok, Millennial"..
    nothing new under the sun.
     
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  16. dunno

    dunno Well-Known Member

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    This table has house multiple up the side and interest rates across the top.

    upload_2019-11-20_12-3-23.png



    Take the cross reference and you get the multiple to pay off the loan over thirty years.

    Subtract (add) the difference in multiple between buying and selling and you get your accommodation expense as multiple of wages.

    Ie buy for 3x on a lifetime average interest rate if 8% gives you a multiple of 8.0, subtract difference between finishing multiple of say 8x and starting multiple of 3x and your lifetime accommodation costs are 8-(8-3) = 3x median wage.

    Buy on a multiple of 8x and an average lifetime interest rate of 4% gives you a multiple of 13.9. say you finish up selling at the end of your home ownership life at 5x and your lifetime accommodation costs are 13.9- (5-8) = 16.9x

    One generation on average pays 3x median wage for lifetime accommodation, the other on average pays 16.9x for basically the same thing. That's generational inequality created by the market.

    You don’t get a say in when or where you are born, that is pure luck. Yet when you’re born dictates when you will become responsible for your accommodation needs. Rent costs reflect ownership costs so whether you buy or rent the market still drives your accommodation cost. Its not as though you can just say I won’t exist for 20, 30 years or whatever until accommodation costs come down.

    Mindset is important, but so too is recognition of some realities. Luck and privilege play their part. The more we can level the playing field for "equality of opportunity" the better and more prosperous society will be.
     
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  17. PKFFW

    PKFFW Well-Known Member

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    To all boomers and any others in this thread that feel attacked or victimised by this thread and or the linked article.

    My sincere apologies for pointing out privilege exists and there are systemic problems. I honestly believed that would be obvious to anyone. Obviously I see now that simply pointing that out is an attack on anyone who may have inadvertently, through no fault of their own and completely despite their extreme sacrifice and hard work, benefited, however little, from such privileges.

    Additionally, my sincere apologies for suggesting there is anything that could or should be done about it. Obviously any such suggestion must be taken as an attack and denigration on those who may have inadvertently benefited, again, through no fault of their own and in despite of their own personal efforts, from such systemic problems.

    Additionally my apologies for suggesting that anything but the right mindset of individual success and a willingness to ignore all injustice and just look after oneself might be a worthy attitude to have or could improve society.

    Lastly, it is obvious that, for many responders in this thread, there is no actual interest in a discussion about the actual issues highlighted in the original article. I will, therefore, bow out now and keep my promise not to respond further.
     
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  18. Sackie

    Sackie Well-Known Member

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    That's why I'm only having 1. I know what's enough for me. There are definitely many parents who should never have kids.
     
  19. kierank

    kierank Well-Known Member

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    But 4 x times that many people in Australia (20M) live outside Melbourne. Why limit oneself?

    Why limit oneself to one’s wage?

    Most of the population aren’t that successful. Why would anyone follow that majority?

    I say again:

    That great. I am not concerned about mine either but I work on it every day.
    Well, you guess wrong :D.

    I don’t worry about my peers. Worry is such a negative thing. I believe it inhibits one’s success.

    I rather spent my time helping people to overcome their shortcomings in mindset, knowledge, experience, confidence, ... including family/friends, multiple PC members (eg face-to-face meetings with members from Brisbane, Sydney and Melbourne.

    At the moment, I am assisting a person in the USA buy a property in Brisbane. He submitted an Offer yesterday.

    To me, that is a far more positive thing to do.

    But I am still amazed every day by the number of people who undermined their potential and jeopardise their success.

    Once again, that is why I posted:
     
    Last edited: 20th Nov, 2019
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  20. Redwing

    Redwing Well-Known Member

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