Confirmed: Boomer sell-off won't crash economy

More confirmation that retiring baby boomers will not (repeat, will not) cause a drag on the economy. One question debated over and over is whether or not the boomer stock and bond sell-off will crash the market. According to the Congressional Budget Office, the answer is no.

As reported by The Street's Joe Mont, Marika Santoro of the CBO's macroeconomic analysis division challenges warnings from some economists who expect security prices to fall dramatically as boomers sell assets to finance retirement. The CBO report calls the dire prediction "unlikely."

"On the surface, the warnings are hardly illogical," Mont writes. "There's always a precarious balance between retirees selling assets and younger generations buying them to increase savings. Given the large number of boomers nearing retirement, it's possible that demand from younger investors won't keep pace as they cash out, causing prices to drop.