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Lost equity puts boomers’ future in doubt

Can they afford to stay in U.S.?

Baby boomers -- the largest, healthiest and wealthiest group ever appearing on the U. S. growth landscape -- never met a loan they didn't like. After leveraging appreciation and location in their starter and move-up homes to pay for cars, college tuitions and trips, their home probably holds most of the equity in their lives. According to a new report by Washington, D.C.-based Center for Economic and Policy Research (CEPR), that home is not worth what it used to be. Coupled with the recent turmoil in the stock market, many boomers will be completely reliant on Social Security and Medicare to support them in their retirement years. "The collapse of the housing bubble, which led to the current recession, has already destroyed almost $6 trillion dollars in housing wealth for homeowners," said report co-author Dean Baker. The study, "The Wealth of the Baby Boom Cohorts after the Collapse of the Housing Bubble," analyzed the wealth holdings of families hea...