Throughout history, bubbles are a function of extraordinary popular delusions and the madness of crowds. Lance Roberts

I offer 15 explanations for the bubble in stock prices and a single explanation for the one in bond prices. Those bubbles could deflate for any of 10 reasons I also identify, severely diminishing the retirement savings of baby boomers.

There are 78 million baby boomers passing through the “risk zone” (the five to 10 years before and after retirement) who could ruin their retirements. They will be irreparably and simultaneously harmed. Losses will diminish their lifestyles even if markets subsequently recover.

This is a terrible time to be retired because interest rates have never been lower, stock prices have never been higher, and the world is in the throes of a debt crisis that could destroy paper (“fiat”) money. Compounding the risk, the average baby boomer is invested 60/40 stock/bonds, a mix that lost more than 35% in 2008 and could lose much more when stock and bond market bubbles burst.

I show and explain why bubbles exist in stock and bond markets. Then I provide a list of “pins” that could burst those bubbles. It’s not a matter of if; it’s how and when. I conclude with recommendations to protect baby boomers. Younger people will probably recover, but baby boomers do not have the luxury of time to recover.