 |
|
 |
B-Rant- submitted by Linda Keenan on 01/24/2008Home Values Plummeting. Economy In Meltdown. Blame?--Look In The Mirror!Contributing Writer: Linda Keenan* When I moved into my first-ever home 6 months ago, I was told in no uncertain terms by several people that I would have to, simply have to, redo the kitchen, or at the very least, get new appliances. I would say to myself, "why? Why do I need to remodel my reasonably attractive and perfectly functional kitchen?" It was presented to me as a fait accompli; naturally I would become yet another mommy warrior in the great suburban kitchen arms race. Whose subzero fridge is colder? Whose dishwasher is quieter? Not once did someone ask this: "do you have the money to remodel the kitchen? Maybe you'll save up to remodel the kitchen?" Sometimes I feel like the 3 very different suburbs I've lived in over the past 4 years are Potemkin villages, American-style. Big, shiny facades, propped up by a pile of questionable IOU's. I knew roughly what the people around me earned. I knew what many of them owed. I knew how they lived. I used to just sort of chuckle about the seemingly endless number of people I knew who were overextended. Now I'm angry at them, because they are not the poor and vulnerable you hear about on the news, and their problems have now become my problems. I should say right off that I am almost certifiably cheap, truly, madly, deeply. And though I am politically liberal, I often feel a bit like the nasty banker, Old Man Potter, from It's a Wonderful Life, surrounded by a bunch of Uncle Billys, who need strings on their fingers to keep all their financial business in order. (To quote George Bailey: "what'd you say a minute ago (Mr. Potter)? They had to wait and save their money before they even thought to think of a decent home. Wait? Wait for what?" To which this old man Potter yells at the TV screen: "wait until you have the MONEY, George!") I am hardly recommending my lifestyle to anyone, because if we had a nation full of insane tight-wads like me right now, we'd be headed for Japan-style, never-ending recession. I have spent a lot of money on our house, a very small one by today's McMansion standards, to live in a town with superior schools. But my husband and I had been saving for a very long time to do it. Everyone has their own priorities, and mine was schools. If your priority is a state-of-the-art kitchen, that is perfectly fine, of course, but I have one question: did you overextend yourself for that kitchen with a bigger mortgage, a second mortgage, a credit card or two that you're a bit behind on paying? I ask, because predatory borrowing (thank you, Tyler Cowen of the New York Times for recently mainstreaming the phrase), not just predatory lending, has led to the housing and stock market mess we now find ourselves in. My 401k is right now in my (dated, but functional) toilet. I'm sure yours is too. Yesterday the local paper had a story about wealthier suburbs being affected by the housing bust, and I kept thinking, "oh, YOU THINK?" There is one foreclosure on my street, another about a mile away. Several real estate listings in my area lately have mentioned, darkly, "offer subject to bank approval", and it doesn't take a Federal Reserve chief to figure out what that means. And yet again, this also affects my family's livelihood: houses sold at pre-foreclosure, fire-sale prices are going to damage my home's value. Shockingly, easy money is still out there. I'm currently refinancing my mortgage to a lower 30 year rate (though it's on hold right now to see how rates shake out after the Fed cut this week). My mortgage broker assured me that there are no closing costs, but that I would have to bring money to the closing to put in escrow, which would then be refunded by my previous lender a month or so after closing. He said to me "most people just add the escrow cost to their mortgage balance (i.e. borrow more). But I don't get the sense you like to work that way." Got that right, brothuh! I then went online to check other rates, and the site asked me how much money I wanted back at closing. Money back? After buying a house? Apparently, it's expected that you can still get some cash wad, even if it means just piling more debt onto your balance. Now it seems Potemkin Village U.S.A. is being unmasked for what it is: a hollow construct, dangerously close to collapse. And if you're looking for the culprit, well, take a good long look at your reflection in those stainless steel appliances, and ask yourself if you're really one of the innocents. *Linda Keenan worked 7 years as a head writer/senior producer for various programs on CNN. Before that, she worked as a writer/producer for Bloomberg TV. She now writes satire, primarily about parenting culture, at www.thoroughlymodernmommy.blogspot.com, ...read more rants   Great, I couldn't have said - submitted by Anonymous on 01/24/2008
Great, I couldn't have said it better myself. i can't believe the people on my block who spend far beyond what they have. It's so stupid & shalllow. We all pay for it Yea, my next door neighbors - submitted by KerryT on 01/24/2008
Yea, my next door neighbors have to have the most expensive cars and hot tubs, it's all about their image. I happen to knnow they're buried in debt. it's gross. The values are twistedd. but the norm is perfection - submitted by FrannyR on 01/24/2008
What happens when everyone is spending and/or borrowing is that it starts to seem not normal to have an unrenovated kitchen or an old living room couch....Why did it change from previous generations where people fixed up houses over time, when they actually had the money in hand? Agree with Franny. I - submitted by KelleyL on 01/24/2008
Agree with Franny. I remember when it was fine to re-do your kitchen over time. There's all this pressure and momentum that builds where you start assuming its ok to extend yourself. If your neighbors are all doing itt, then it must be OK. It's not OK but you get caught up in false assumptions and lose ability to judge what's reasonalbe and not. I want a convection oven and - submitted by LTG on 01/24/2008
I want a convection oven and I want a sub zero and I want want want. What's wrong with us. I don't recongize myself sometimes when I notice myself thinking I want all these things. Some of my fri4ends think they need these things, and I tell them no you don't, it's OK to have a bathroom redone 10 years ago instead of last week. Ugh, it's tiring isn't it? stepford village - submitted by Anonymous on 01/25/2008
right on sistah! I too have a pernicious feeling of social snubbing, but also of snubness. My outdated vehicle, & my work in progress house don't impress anyone-except with the idea that i may be a bum, or at the very least abnormal. But what i can't seem to convey as important to people is my peace of mind. I've learned a lot working on this old house, & in the process have managed to pay it off. And i'm the poorest seeming person i know who actually OWNS a savings account; imagine that. But i do sleep rather well at night in my old but comfortable bed!!! this is the writer, linda - submitted by linda keenan on 01/25/2008
i should say that i was raised by depression-era parents and i really was affected by that. i guess what inspired me to write this is that we have heard so much about hapless borrowers and i know this is true. i also know LOADS of people who are hardly hapless and keep borrowing and spending and spending and borrowing. i have zero sympathy for them. we live in a nation that easily sends its lower class off the war and yet the rest of us cant figure out that at 70 grand a year you cant buy a 500k house? uh oh im getting political! twisted perspective - submitted by FrannyR on 01/25/2008
What's so absurd is that debt is so accepted that most of us don't even consider our house and car debt to "count." it's so standard to have a big mortgage and borrow to buy a car, that we consider those things "acceptable borrowing" and the other stuff (living off credit cards, home equity loans etc) to be debt. So we fool ourselves as to how much debt we're carrying. Linda & Franny, I couldn't - submitted by JenO on 01/25/2008
Linda & Franny, I couldn't agree more. I don't know what these people are thinking. Some are my friends. Its so irressponsible and it does end up affecting all of us. But I think as much as the irresponsibility, it's the warped values that it promotes. We don't always need better kitchens or toys. We're living and communicatingv all wrong values to our kids. Yea, I'd love to drive my neighbors' BMW X5. But I can't afford and, know what, I'm fine about it. though i should add that i - submitted by this is linda again on 01/25/2008
though i should add that i was still judgmental about overspending even before it started affecting me. i dont know, i just find it so disturbing, and as a former economics writer i feel like im a little too immersed in it for my own good. thanks for reading! Nothing wrong with being - submitted by Anonymous on 01/25/2008
Nothing wrong with being generous to yourself. If I like a great kitchen, why shouldn't I stretch for it. I don't care about great schools, I care about great kitchens. I think I have right to set my priorities. if I want to buy myself into bankruptcy, that's my choice. More anger should go toward the banks and government regulators for encouraging lenders to lend to any broke moron. Of course it's stupid to bury yourself in debt. nobody's more stupid and corrupt than the banks w3ho push it My neighbors hired a - submitted by yokkie on 01/25/2008
My neighbors hired a contractor to renovate their family room. The husband just lost his job, the wife, my friend, may lose hers. their attitude is, live in the present and screw3 the rest. They have 3 kids and a mother in law staying with them. They have already committed to sending their kids to the most expensive summer camp i've heard of. They are out of their minds this is the writer, linda - submitted by linda on 01/27/2008
i find it disturbing that someone would think that bankruptcy is your right and privilege. by declaring bankruptcy you not only hurt yourself but you also hurt the companies you owe money to. what give you the right to do that? that's what i dont get. now to the other point from anonymous, totally totally agree that the banks and other institutions have fostered this whole mess but i felt like that aspect has been well covered and also it's a little too gargantuan to try to do here. and i wouldnt have the expertise to do that anyway. but again totally agree and see the new york times today about banks now being investigated for knowingly taking bad loans etc. thanks for reading! I don't feel so stupid for - submitted by Anonymous on 01/30/2008
I don't feel so stupid for having never owned a house. Never felt comfortable about the debt, never was a spender. I hate things hanging over my head, I don't know how some of those folks sleep at night. Bad thing is, even I suffer since with a recession, it hurts my business. Enjoyed your comments, you might enjoy mine too - submitted by Logan Flatt, CFA on 03/13/2008
Linda, I really enjoyed your comments about looking in the mirror and taking personal responsibility for one's financial actions and inactions. I have a 12-part series going at my website, http://www.PowerWealth.com called "How to Get Ahead in America." Parts 2 and 3 might interest you and some of your readers here: 2. Refuse to allow anyone else to take responsibility for creating your life. http://www.powerwealth.com/powerwealth/2007/09/by-logan-flatt-.html 3. Refuse to be a victim. http://www.powerwealth.com/powerwealth/2007/09/how-to-get-ah-1.html Keep up the good financial values your are conveying here, and I hope you enjoy the essays. Logan. Sorry I'm late to this - submitted by Anonymous on 05/07/2008
Sorry I'm late to this conversation, but just wanted to add my agreement. When we moved into our house, about 10 different people immediately gave us their plans for how/where we should add a bathroom, because obviously no human can live with just one full bath in a house with 4 people. Well, it's 10 years now, and somehow we all have survived 1 bathroom, and my debt is still manageable. My house is old, small, and unfashionable. But I can't help but snickering slightly at the overdone McMansions languishing for months on the market around here.  |
|
