Boomers retiring with the notion that they can sell their houses and live off the interest. The traditional "pensions" no longer exist and Americans have been sold the 401K is better line for almost 20 years now. Problem is the 401k's aren't going to go up in value and are very likely to drop 30% and these people will be flooding a stretched inventory in housing to live, further exaserbating the problems. The retirement bust and the housing bust are going cause a perfect storm. I am dumping the bigass house to rent for a couple of years just to ride out the storm and look for steals. There will be plenty. I wouldn't be shocked to see unemployment at 8 to 10% inside of 3 years. The truly sad thing is that interest rates are traditionally very low even today. My first house was over 8% and I thought that was great at the time.
