Is ‘Boomer’ now a pejorative term?

[homer]

Elizabeth Warren* wrote a personal finance book in 2005 called All Your Worth. She has an interesting hypothesis that states (and I’m simplifying) a lot of the financial trouble folks run into these days is a result of a change in banking laws, which eased restrictions on the amount of interest banks could charge. 50 years ago, people couldn’t borrow more than a year’s salary to buy a vehicle because banks didn’t want a customer to overextend themselves and default on an auto loan. However, today, banks aren’t quite as limited and are much more willing to make all kinds of loans (auto, boat, ATV, etc.), provided they are compensated for the added risk in the form of higher interest rates.

 

* this book is apolitical (and a recommendation for fellow personal finance nuts)

 

Sorry, but that doesn't check out. Interest rates are at historic lows, and have been for some time.

 

I think nodakfan is saying that they can charge higher interest rates on the loans they provide therefore they are ok lending to people who wouldn't have qualified back in the day.

[nodakfan17]

Elizabeth Warren* wrote a personal finance book in 2005 called All Your Worth. She has an interesting hypothesis that states (and I’m simplifying) a lot of the financial trouble folks run into these days is a result of a change in banking laws, which eased restrictions on the amount of interest banks could charge. 50 years ago, people couldn’t borrow more than a year’s salary to buy a vehicle because banks didn’t want a customer to overextend themselves and default on an auto loan. However, today, banks aren’t quite as limited and are much more willing to make all kinds of loans (auto, boat, ATV, etc.), provided they are compensated for the added risk in the form of higher interest rates.

 

* this book is apolitical (and a recommendation for fellow personal finance nuts)

 

Sorry, but that doesn't check out. Interest rates are at historic lows, and have been for some time.

 

I think nodakfan is saying that they can charge higher interest rates on the loans they provide therefore they are ok lending to people who wouldn't have qualified back in the day.

 

Thanks, homer. Yeah, it’s not so much about the level of interest rates (pretty low since 2009), but rather the difference between the market rate and what banks actually charge. Hypothetically, let’s say banks were once limited to charging a maximum of 2% above the market rate for auto loans. They had to stick to well-qualified buyers because they couldn't afford to lose any of the principal. Today, without a cap, banks have a little more leeway. For example, they might be able to lend to a recent college grad at 3% above the market rate. 50 years ago, this person may not have qualified for an auto loan. The default rate for this type of borrower may be higher than the typical well-qualified buyer from 50 years ago, but the bank is compensated for the extra risk in the form of higher interest (collecting 3% above the market rate instead of 2%). Generally speaking, providing credit to a broad range of people is a good thing. However, it has created issues for some folks who have overextended themselves.

[nate82]

 

I think nodakfan is saying that they can charge higher interest rates on the loans they provide therefore they are ok lending to people who wouldn't have qualified back in the day.

 

It is more of supply and demand than it is the higher interest rates. There are just more applicants in the pool and the banks are now able to take on more risk because of this. With the higher applicant pool the banks can take on more risk as the average person far out weights the high risk person.

[MrTPlush]

If someone doesn’t care about their education because someone else is paying for it they certainly aren’t going to care if they are paying for it either. You care or you don’t. I don’t think there is a strong correlation between the student paying versus someone else.

 

The reason kids not paying for their college flame out more often is because they are going purely based on not having any financial skin in the game. If they would have to put in an effort to pay (like having a job on top of it) they simply wouldn’t go...not try harder.

 

Sure it may motivate some, but odds are they already cared and were going to put in the effort anyway. I knew a lot of people from a lot of different walks of life. No amount of financial aid (or lack of it) was going to help the people that failed/dropped out.

[OldSchoolSnapper]

Eh, I'm not sure I totally agree with that, but I would guess that the people who can pay for kids education and choose not to cover 100%, have probably already raised children that are humble and decent and would already care by that point in life whether it was paid for or not.

 

I have a very wealthy uncle in real estate out East (bought up a bunch of shore properties in the 70s) who had two boys, and he did make them both take out some loans. His words were "if I pay for the whole thing, they have no skin in the game."

 

So maybe I do agree with it a bit, but I also think giving them a loan will help them empathize with those less fortunate. I knew a lot of people who got a free ride and they worked hard, but most of them also lack any concept of what they were given.

[MrTPlush]

The problem is loans don't make a student have "skin in the game", at least not mentally. The amount of students that actually realize what their loans will cost them monthly or actually realizing they will have to pay them back is essentially zero. Yes they know they have to pay them back, but it doesn't really hit them until they start getting that bill. The only students with a real big grasp on the impact their loans will have in the future are finance/accounting type students.

 

Even then the way they portray students as making a big joke about their loans and how much they are going to have is woefully accurate. Taking out loans simply isn't going to make a student suddenly put in a ton of effort. It is just imaginary money they are spending until the payments hit. Many students who get aid will take out the max federal loan anyway to get the refund check so they can have spending money. To be honest I didn't know a single person who didn't take out the max. College students either want the refund check or they want to keep as much money in their bank account as possible. Many students could pay a lot more out of pocket, but opt not to so they can get a newer car or have spending money for random things.

 

Every student is different, but taking out loans just isn't changing much in their head. Now if you have to start dipping into your own bank account and run it close to $0...maybe that gets you a little more focused.

[BrewersSuperCollector]

Making a television show

 

https://www.msn.com/en-us/tv/news/fox-filed-ok-boomer-trademark-application-for-tv-show/ar-BBWXB4Z?ocid=spartandhp

[KeithStone53151]

That's surprising that Fox would be the network to go for this type of show. Unless the point is to mock the kids that say "Ok boomer".

[FVBrewerFan]

That's surprising that Fox would be the network to go for this type of show. Unless the point is to mock the kids that say "Ok boomer".

 

The point will be to mock the boomer. Essentially the same as 80 other sitcoms where dad is the butt of the jokes.

[LouisEly]

I recall hearing that most universities (I think all public and about half of private) do not take into account the value of a family's home when applying for financial aid. If true, then it might be best to pay off the mortgage first before putting anything into a 529.

[hawing]

Making a television show

 

https://www.msn.com/en-us/tv/news/fox-filed-ok-boomer-trademark-application-for-tv-show/ar-BBWXB4Z?ocid=spartandhp

And Fonzie goes sailing over the shark.

[mtrebs]

All I know is I’m tired of HS kids saying “okay boomer” to anyone that is older to them as a snide remark.

 

This is the part that annoys me. If you’re going to make smart-@$$ comments, then take the time to make sure you are correct. Otherwise you just look like a moron.

 

Read any Facebook post where someone complains or criticizes something and someone will post “OK boomer” even if the person is 20-30 years removed from being a Baby Boomer.

 

That being said, I fully expect to get an “OK boomer” reply to this...

[MrTPlush]

You are missing the point...it is said to annoy the person and be condescending. It worked whether you are actually a boomer or not. It’s almost better because the only thing more insulting than being negatively generalized as a generation is if it isn’t even the generation you actually belong to.

[mtrebs]

You are missing the point...it is said to annoy the person and be condescending. It worked whether you are actually a boomer or not. It’s almost better because the only thing more insulting than being negatively generalized as a generation is if it isn’t even the generation you actually belong to.

 

That seems too clever for the masses. I wouldn’t be surprised if the majority of individuals saying “OK Boomer” think it’s just anyone that’s older than them without knowing the real context.

[Ron Robinsons Beard]

That's surprising that Fox would be the network to go for this type of show. Unless the point is to mock the kids that say "Ok boomer".

 

The point will be to mock the boomer. Essentially the same as 80 other sitcoms where dad is the butt of the jokes.

 

Nah, it's Fox. The off-color, slightly redneck blue collar dad (or grandpa) is going to be portrayed as the hero, while his snotty late teen or 20-something kids (or grandkids) are going to be entitled, lazy brats. It's a role that Tim Allen was born to play.

[homer]

I’ve mulled refinancing my student loans and cutting the repayment time in half. Just not sure the savings are really worth nearly double the monthly payment. I can’t really save anything simply refinancing under the same length terms as 5% isn’t terribly high as is.

 

 

I would still look into it. Getting a rate quote doesn't ding your credit score and very often you can get the same loan length with a lower interest rate.

[young guns]

You are missing the point...it is said to annoy the person and be condescending. It worked whether you are actually a boomer or not. It’s almost better because the only thing more insulting than being negatively generalized as a generation is if it isn’t even the generation you actually belong to.

 

That seems too clever for the masses. I wouldn’t be surprised if the majority of individuals saying “OK Boomer” think it’s just anyone that’s older than them without knowing the real context.

The context, as far as I'm aware, is that boomer isnt a reference to the person's age, but their mindset. Anyone can be a "boomer" but a baby boomer is a person of a certain age.

[JackNicholson1974]

on the way home from hockey practice as I was shuttling 3 boys home in the weekly carpool, they were complaining about their coach who is approximately 45 years old. In their recitation to each other as to how annoying the coach was for whatever he was making the boys do one of the boys said he was like "Ok, Boomer" and I was completely annoyed but kept my mouth shut as there is no reason to fight that battle.

 

So I think kids are just using it as a comeback/insult toward any adult in a position of authority or power over them (parent, teacher, coach, politician, etc)

[mtrebs]

on the way home from hockey practice as I was shuttling 3 boys home in the weekly carpool, they were complaining about their coach who is approximately 45 years old. In their recitation to each other as to how annoying the coach was for whatever he was making the boys do one of the boys said he was like "Ok, Boomer" and I was completely annoyed but kept my mouth shut as there is no reason to fight that battle.

 

So I think kids are just using it as a comeback/insult toward any adult in a position of authority or power over them (parent, teacher, coach, politician, etc)

 

Yes, I think it's anyone older than them that they don't agree with, regardless of that person's mindset. Doesn't matter if it's a mindset that's typical with Baby Boomers or not.

[PlayerHader]

It’s a lazy, cop out retort to avoid real discussion.

 

Which is perfect for twitter.

[MrTPlush]

I’ve mulled refinancing my student loans and cutting the repayment time in half. Just not sure the savings are really worth nearly double the monthly payment. I can’t really save anything simply refinancing under the same length terms as 5% isn’t terribly high as is.

 

 

I would still look into it. Getting a rate quote doesn't ding your credit score and very often you can get the same loan length with a lower interest rate.

 

After searching options for quite a bit I did find one that would give a generous drop in interest rate. Id have to go into a shorter repayment, but it only increases the monthly payment $80 or so.

 

Took me awhile to find one even worth the time though. Most places were actually worse or the same rate. It was somewhat annoying as many places won't do a soft credit pull so if you have really good credit the quote wasn't really accurate.

 

Next up refinance the car loan.

[BrewersSuperCollector]

Millennials are damned if they do and damned if they don't. They get blamed for a downturn in many brands including Harley Davidson. Now, they are blamed for rising Christmas tree costs. https://www.tmj4.com/news/national/millennials-are-driving-up-cost-of-christmas-trees?fbclid=IwAR1VJRPyw_xHauRAjvCOWsN5pkD7D2-Xz3uKhC5t_Ke5w8nCfKAoXW79PUs

[nate82]

Millennials are damned if they do and damned if they don't. They get blamed for a downturn in many brands including Harley Davidson. Now, they are blamed for rising Christmas tree costs. https://www.tmj4.com/news/national/millennials-are-driving-up-cost-of-christmas-trees?fbclid=IwAR1VJRPyw_xHauRAjvCOWsN5pkD7D2-Xz3uKhC5t_Ke5w8nCfKAoXW79PUs

 

This is economics 101 supply and demand. Why is it so hard for the news outlets to understand this?

[TURBO]

Millennials are damned if they do and damned if they don't. They get blamed for a downturn in many brands including Harley Davidson. Now, they are blamed for rising Christmas tree costs. https://www.tmj4.com/news/national/millennials-are-driving-up-cost-of-christmas-trees?fbclid=IwAR1VJRPyw_xHauRAjvCOWsN5pkD7D2-Xz3uKhC5t_Ke5w8nCfKAoXW79PUs

 

This is economics 101 supply and demand. Why is it so hard for the news outlets to understand this?

 

Fake news...

[LouisEly]

This GenX'er is perfectly content with his 7' lighted palm tree in lieu of a Christmas tree, real or artificial.