Is the housing crisis just the confluence between the Baby Boomer’s downsizing and the over zealous lending practices on Wall Street? That is the consensus of John Wasik at The 40 year run of spending by the Baby Boomer’s is almost over and as they downsize their lives for retirement, there are not enough Generation X families to take up the slack in housing.

So the McMansions and large homes are not going to have many occupants according to Wasik. He also state that the housing bubble and the population bubble coincided at the beginning of the century and when they burst, the damage will be long lasting.

Although we may not be headed for a 1930s-style Depression, there’s plenty of evidence to suggest that boomers are dumping their four- and five-bedroom suburban homes for two- and three- bedroom condominiums.

It’s also unlikely that the “Generation X,” born between 1965 and 1976 (or more derisively called “baby busters”), will bid up home prices. They are only 44 million strong, not as wealthy and even more in debt from college loans.

The baby boomers are reorganizing their finances after a rocky decade in stocks. They aren’t buying as many second homes and vacation properties in warmer climates. via

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