wow what happen?

[stephenandrew]

It's more common than you'd ever believe. I've heard a rumor that Goldman Sachs is making low cost loans available to employees to bridge them over last year's cut in bonuses.

Naturally a lot of this is driven by overconfident, self-important, blow hards who think they are worth the money they make and always will be. The good times will never end. And besides, everyone in their circle spends the way they do, so it all seems normal . . . and to a certain extent, necessary.

But at the same time, "Wall Street" employees typically work in areas where the cost of living is so high as to be unimaginable to ordinary Americans. To say that "I would be set for life on $x00,000 per year" is not at all certain. Especially when you're required to work 80+ hours per week to pull down that paycheck. The idea of adding a 2-4hr round-trip commute to the lower cost x-urbs on top of your normal 12 hour day is simply unworkable. So you get a place in the city (NY), where the MEDIAN price for a condo is $1MM ($500K for a studio!!!!). But then you have kids, and the public schools here all blow. So you send them to private school for ~$30K per year a piece. Etc, etc, etc. The money goes fast.

Understand--but this gentleman and his family reside in Tampa, FL. My guess is that $500K in Tampa gets you a pretty decent house, in a pretty decent neighborhood. I also would not be surprised if Tampa has a few good local, public (read "free") school Districts. Also, I am not certain how your total number of hours work have anything to do with this---if I worked 1 hour a year and made $750,000 or 4000 hours per year and made the same thing, its still a boatload of money. So, I am pretty certain that on $750K per year in Tampa, with two kids, I would be ok (atleast based on how I live my life now).

 

[dex]

Someone already has...........

The Karpmans are now on food stamps and a tight budget that doesn't nearly cover their children's $30,000 private school tuition. But thanks to an anonymous donor, the Karpmans children's tuition has been covered through next year and they are deeply appreciative

That is sad.

It just goes to show - marketing and advertising does work some times.

 

[Gone4Good]

Understand--but this gentleman and his family reside in Tampa, FL. My guess is that $500K in Tampa gets you a pretty decent house, in a pretty decent neighborhood. I also would not be surprised if Tampa has a few good local, public (read "free") school Districts.

Agreed. I wasn't talking specifically about this guy, but aimed my comments more generally. My second paragraph also applies.

Also, I am not certain how your total number of hours work have anything to do with this.

My point there is that if you work a "normal" 40-50 hours per week, commuting 2 hours from low cost neighborhoods is an option. When you work 8 AM to 9 PM six and seven days per week, that commute isn't really possible (or at least tolerable if you can afford to avoid it). So in a sense, you're forced into high cost housing.

 

[stephenandrew]

.


My point there is that if you work a "normal" 40-50 hours per week, commuting 2 hours from low cost neighborhoods is an option. When you work 8 AM to 9 PM six and seven days per week, that commute isn't really possible (or at least tolerable if you can afford to avoid it). So in a sense, you're forced into high cost housing.

Point well taken

 

[MichaelB]

Understand--but this gentleman and his family reside in Tampa, FL. My guess is that $500K in Tampa gets you a pretty decent house, in a pretty decent neighborhood. I also would not be surprised if Tampa has a few good local, public (read "free") school Districts. Also, I am not certain how your total number of hours work have anything to do with this---if I worked 1 hour a year and made $750,000 or 4000 hours per year and made the same thing, its still a boatload of money. So, I am pretty certain that on $750K per year in Tampa, with two kids, I would be ok (atleast based on how I live my life now).

It's all in your last line. You are judging based on your circumstances, not his. Many people look at what they don't have but others do - not what they have but other's don't. This is almost a Greek tragedy. The fatal flaw - greed - is clear and open, simple steps could be taken to avoid the tragedy, yet it still happens.

 

[Cattusbabe]

Did I miss something or was there no word of Mrs. Karpman getting off her tush and getting a job to help with the bills.

 

[Helen]

This guy isn't much different. Although he went through a divorce and started a business that went bust. Before he started the business he tapped into his home equity to help pay for his kids college. It doesn't sound like he was too business savy either.

Moving on: Diary of a busted boomer - Reinventing America- msnbc.com

It's strange how people can get MBAs and manage money for others and be so irresponsible with their own finances.

 

[thefed]

I was going to post about this story, but im glad y'all got to it already!

I dont want to judge the guy one way or another (but c'mon....500k savings isnt enough for that lifestyle and that income level). BUT, the media is a joke for making this out to be this way. Instead, Suze Orman should've done the story with a 20 minute segment on saving and living well within your means. THAT wouldve been a productive AND headline catching story. Oh well....

 

[Gone4Good]

 

[Bestwifeever]

Did I miss something or was there no word of Mrs. Karpman getting off her tush and getting a job to help with the bills.

Hey, Mrs. K. has been keeping quite busy counting her handbags and finding clothing to wear that she "hadn't touched in years." She should work too? Besides, it isn't her fault, she told Mr. K. not to leave that high-paying trading job. Poor Mrs. K.!

They are both delusional--not for their previous lifestyle necessarily, but for not quickly adapting to the change in their circumstances.

 

[Koolau]

I'm sure we could all criticize certain aspects of this man's spending. The big house, the private schools, etc., etc. What I see is the "need" to have it all.

Personally, we spent (maybe not 30K) a lot on private schools and then moved to a different school district to give our kids the best education we could afford. But, we compromised on the housing and many other things. Any one thing may not be a "killer".

We always told our kids that (in life) you can do anything you want. You just can't do everything you want. Trite perhaps, but I've heard them spout it back to each other when they didn't know I was listening. So far, at least 2 of the 3 are sort of living that way. Not too sure about that third one. Hope he doesn't have to go through what this family has in order to (hopefully) learn what this family has learned.

I say, God bless 'em. Sounds like maybe they "get it" now. At least the man is willing to w*rk and not sit and pine for the good old days.

I would be shocked, but wouldn't it be great if the same "news" organization got back with these folks a year or two from now to see how they are doing?

 

[Gone4Good]

I say, God bless 'em. Sounds like maybe they "get it" now. At least the man is willing to w*rk and not sit and pine for the good old days.

I'll agree with you once they drop the $30K in tuition before taking food stamps. Kind of reminds me of Reagan's "Welfare Queen".

 

[steve88]

I'm sure we could all criticize certain aspects of this man's spending. The big house, the private schools, etc., etc. What I see is the "need" to have it all.

Personally, we spent (maybe not 30K) a lot on private schools and then moved to a different school district to give our kids the best education we could afford. But, we compromised on the housing and many other things. Any one thing may not be a "killer".

We always told our kids that (in life) you can do anything you want. You just can't do everything you want. Trite perhaps, but I've heard them spout it back to each other when they didn't know I was listening. So far, at least 2 of the 3 are sort of living that way. Not too sure about that third one. Hope he doesn't have to go through what this family has in order to (hopefully) learn what this family has learned.

I say, God bless 'em. Sounds like maybe they "get it" now. At least the man is willing to w*rk and not sit and pine for the good old days.

I would be shocked, but wouldn't it be great if the same "news" organization got back with these folks a year or two from now to see how they are doing?

punahoe??

 

[bubba]

I read the article, and regarding a question from someone up-thread about Mrs. getting a job and helping out, my guess is as soon as she can line up Mr.'s replacement, she's out of there. Honestly, I feel very sorry for the guy. He made a mistake with the hedge fund, but he was trying. Now, he is trying to keep his family from starving by doing honest work. I wish him the very best going forward, and hopefully he will have learned something from this mess. While I hate to admit this, I can see how this happened with the pressures to "live up" to the income.

 

[Koolau]

punahoe??

Actually, not Punahou although that is a truly outstanding school from what I am told. I could never have afforded it.

It was when we resided on the mainland. Found a very academically advanced (and caring) parochial school for K - 8. We then moved to a school district which had a high school with excellent credentials in college prep, drama, sports and art. Never regretted it and worth every penny, even though our local public schools had relatively good reputations. This was our special "gift" to our kids. We never lavished other gifts on them. No car, no video games, no $1000 bikes, etc. And, yes. They complained about our choices - for a while. I think it's beginning to pay off - even in their minds. We'll see.

 

[thefed]

Did I miss something or was there no word of Mrs. Karpman getting off her tush and getting a job to help with the bills.

On the TV segment last night they said she works the concession stand at her kids baseball games for some $$.

 

[steve88]

On the TV segment last night they said she works the concession stand at her kids baseball games for some $$.

actually its towards the kids little league fees.

 

[Gardnr]

I'll agree with you once they drop the $30K in tuition before taking food stamps. Kind of reminds me of Reagan's "Welfare Queen".

Yeah, I thought the same thing and said that to DW as we watched this. I really don't understand it at all. Also they should have already sold off all their excess stuff and toys (watercraft, etc.) before taking food stamps.

 

[thefed]

Yeah, I thought the same thing and said that to DW as we watched this. I really don't understand it at all. Also they should have already sold off all their excess stuff and toys (watercraft, etc.) before taking food stamps.

they sure did have a nice pile o' stuff, didnt they?

If i were in that exact position though, i'd take the 500 in stamps as fast as i could get them. why not?

 

[tmm99]

I feel sorry for the guy and at the same time, think - wow don't you have any common sense. The story ran on 20/20 or whatever the name of the show is last night and they have been living in that house for 2 years without paying the mortgage. Most normal people would have been evicted way before that. ....and they have run up $100,000 in credit card debt. The wife hasn't attempted to get a job from what I can tell - other than working the snack bar at the Little League games so the kids don't have to pay the fees. I can't help but think with the $100,000 in credit card debt that they haven't really adjusted their life style other than not getting the pool repaired or the hot water heater in their master bath.
And when they are foreclosed on - they will have to move to a small apartment which won't hold all the wife's clothes - well among other things - less face it their house is huge. Then they will sell things on Craig's List. What are they waiting for?

I agree with all of the above (except I don't feel sorry for the guy. He lives in such a beautiful home!). Same exact questions came to my mind too.

tmm

 

[tryan]

With the news media following them, they'll milk this situation for everything they can ... never sell or pack a thing. Let the camera's roll during the eviction. This will be a real tear jerker.

 

[ziggy29]

With the news media following them, they'll milk this situation for everything they can ... never sell or pack a thing. Let the camera's roll during the eviction. This will be a real tear jerker.

Wealthy or not, stupid with money or not, I hate to see this sort of thing happen to anyone and I feel no schadenfreude about their situation.

Having said that, what I resent is that the typical media coverage of occurrences like this tends to focus on how bad things are out there and make consumers even more fearful -- when I think the real message should be, "this is what can happen when you live at or above your means and drink the keep-up-with-the-Joneses Kool-Aid."

In other words, it's less about a terrible economy (this could happen at any time to people and in any economy; you only hear the sob stories now) and more about the dangers of living on the edge of your means and falling victim to affluenza.

 

[W2R]

Having said that, what I resent is that the typical media coverage of occurrences like this tends to focus on how bad things are out there and make consumers even more fearful -- when I think the real message should be, "this is what can happen when you live at or above your means and drink the keep-up-with-the-Joneses Kool-Aid."

While messing around on the internet this weekend, I had my TV on in the background. I listened to a show about how desperate unemployed people can find a job in this awful economy (and really, it was frightfully depressing because they came up with nothing new or effective IMO).

Then, I listened to a show focusing on some individuals with HORRIBLE credit card debt that they couldn't ever pay off, despite more income than I have. On top of that, one was getting his credit terms modified drastically by his CC company (higher interest, lower limit, that type of thing) due to his inability to pay more than the minimum, and his situation seemed hopeless. Medical expenses got at least one of them in that situation.

After listening to those two shows back to back, I just shut off the TV. It is too depressing! And I don't even have these problems, myself. Imagine how depressing it would be if I were worried about becoming unemployed, or a little behind on credit card debt.

 

[ziggy29]

Then, I listened to a show focusing on some individuals with HORRIBLE credit card debt that they couldn't ever pay off, despite more income than I have.

See, that's the thing. While layoffs are more prevalent in a terrible economy, they can and do happen in ANY economy. Such a person would be in deep kimchee even in a strong economy. But you never hear the sob stories then. No, let's pile on the fear and gloom while people are fearful and gloomy.

It's a wonder economies ever recover with media stories influencing consumer confidence like this.