The coming psychological shock is bigger than the economic one

Raised in boom times, many Gen-X and Yers see their dreams go bust - Los Angeles Times

People everywhere are coping with rising credit card balances, falling home values and layoffs. But such worries are particularly jarring for a younger slice of the workforce that has known little but long-term financial prosperity and optimism.

After all, a large share of today’s 20- and 30-somethings — a nearly 80-million strong cohort — were in college or high school (and some in grade school) the last time the country experienced a severe financial jolt. Some can barely remember the mild recession of 2001, which was followed by an extraordinary boom that coincided with their entry into the workforce.

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