Druckenmiller: Old Stealing From Young

Druckenmiller, who is known to be media shy, told Bloomberg TV that he sees “a storm coming, maybe bigger than the storm we had in 2008, 2010” and it has to do with a demographic bubble.

“But the demographic storm is just starting now. It reminds me of ’05 when people just extrapolated housing prices going up for 50 years…Everyone sorta lives with their rulers in the past and doesn’t look at coming changes,” he said.

What’s happening, he explained, is we have a working population now where the current workforce pays for the benefits of the seniors. Since 2000, there have been about 4.5 to 4.8 workers per retiree. He said by 2050 it will be only 2.4 workers per retiree.

He told Bloomberg TV that people like him need to speak out about this issue. Just to be clear, he’s not against the seniors.

“And let me just say one thing. I am not against seniors, okay. I love seniors. Unfortunately I’m going to be one in the not-too-distant futures. What I am against is current seniors to me stealing from future seniors.”

via Business Insider. (Video at the jump.)

Now is the time we should be saving money like mad.  Paying off debt and getting ready for the massive exodus of retirees from the workforce. Instead we’re spending like drunken sailors and not worrying about tomorrow. (Tomorrow never comes.)

Right now millions of savings from boomers still flow into the market each week.  The money has to go somewhere.  This is artificially keeping stock prices high and bond rates low.  There will come a day soon when the net flow of money is not INTO the market but OUT.  Retirees will be pulling money out so they can pay bills and buy food.  When that happens look out!!

The markets will turn upside-down overnight.