Changed behavior

The Baby Boom Generation, 1946-1964, saved diligently throughout their working lives. A lifestyle that they gradually changed as they approached retirement age by starting to consume. The children and grandchildren of the Baby Boom Generation, Generation X and Millennials, have a completely different lifestyle.

These generations are more focused on consumption than saving. At the same time, society has also changed and a lot of consumption takes place today with expected future income in the form of consumer loans. The "air cushion" that previous generations gave the financial system by limiting the money supply with savings that pushed down the interest rate is gone today.

Instead, the supply of money is unlimited because of all the "artificial" money fed into the system in the form of consumer loans.