Nouveau Poor
Nouveau Poor
Fake, shallow, uneducated and immoral people who used to be employed in the business of selling what they knew were overpriced homes or dodgy mortgages to unsuspecting sheeple in order to earn commissions, who recently lost all of their ill-gotten gains.
Refers also to a person who has acquired and then lost considerable wealth within his or her generation.
This term is generally to emphasize that the individual was previously part of a lower socioeconomic rank, acquired wealth and/or access to debt, and then started acting like they came from a higher socioeconomic status through the acquisition of goods or luxuries that were previously unobtainable, and then lost everything once the Big Housing Ponzi Scheme ended.
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20 comments:
What do you call people that listened to the wrong people and allowed their brokers to lose 40% of there wealth? Nouveau Dumbass. Sign me up...
On the flip side, my $200k lost got me an invite to the bastards christmas party, yeah.
Well, my grandparents were nouveau riche who'd then become nouveau poor during the depression but then my parents had become noveau middle class and then lost it all and now, I'm working my way to becoming nouveau riche again.
So if I become rich, will that make me pseudo-old money?
How about "old poor" - you know, like renters and Democrats?
Nouveau Poor
Greg Swann
He just lost $150,000 on his house
A friend in Phoenix lost 13 houses to foreclosure between '06 and '07. Went through the mental anguish of the losses, got resettled and mentally balanced.
Sunday she told me she just spent the last week at a 6-day real estate auction in Phoenix. Bought 5 houses. Had friends get loans for her; Wells Fargo was giving "investor" loans at lower than mid-5%.
'06 homes that were selling for $495K then, sold for $135K at the auction. '06 homes that were selling for $300K then, sold for $40 - $50 - $70K at the auction. The $40K needed paint and carpet, that's it.
Only "problem" is, the highest rent for these homes is in the $600's, and the rent bubble hasn't even deflated yet.
Buyers at this auction must have believed we already hit bottom. Two-time losers. They're all going to be sitting there with empty "investments" because there aren't that many renters and the proud new investors will have to drop the rent to $400 then they're back to a big fat negative on that auction win.
Round two!
Here we go!
Stupid just gets stupider.
I just cannot believe it.
Synonymous with Reagan Democrat.
In the dictionary under "nouveau poor," I believe it says "See Phoenix."
It's funny because that's what it said for your last word for the day, "Ponzeconomy."
I moved to Phoenix in 1997, straight out of college. When I told one of my wise old college professors of my decision, a very accomplished jazz musician who has lived most of his life in Cleveland, his response was, "I'm always suspicious of boomtowns. The starting salary for the Phoenix Symphony is $20,000." (Cleveland's was probably $70K at the time.)
While a city's symphony is not the only measure of it's sophistication, it's fair to say the average PHX pump'n'dump house flipper didn't consider sharing some of his wealth with the orchestra, the art museum, or the like.
Cleveland might be an economic catastrophe, but in terms of culture per capita, it is a huge step up from this place.
I hang around with a lot of wealthy folks here in Phoenix. There's such a difference between Scottsdale and Shaker Heights. The average rich guy here made his money in a field that required no education: sales, real estate, construction, whatever. So, he's not worried too much that his kids' schools are way below average and most of his kids' friends are not too interested in school. It's going to be interesting once the boomtown Ponzi Scheme goes bust.
Synonym: registered GOP voter. Those who voted for Reagan twice and 2 Bush's 3 times.
Registered GOP voter: see servile psychophant.
Servile Psychophant : boot licker. lackey. white trash wannabee rich guy. a self defeating loser. Red stater. NASCAR member. Deep fries every food. Fat slob. See Rush Limbaugh.
sounds like the typical suburban phoenix a-holes
The good thing about boom & bust towns, like Phoenix and Miami, is that, if you time it right you can make a bundle of money. But if you time it wrong, you lose 10 years of your life.
Blogger JAWS said...
A friend in Phoenix lost 13 houses to foreclosure between '06 and '07. Went through the mental anguish of the losses, got resettled and mentally balanced.
Sunday she told me she just spent the last week at a 6-day real estate auction in Phoenix. Bought 5 houses. Had friends get loans for her; Wells Fargo was giving "investor" loans at lower than mid-5%.
'06 homes that were selling for $495K then, sold for $135K at the auction. '06 homes that were selling for $300K then, sold for $40 - $50 - $70K at the auction. The $40K needed paint and carpet, that's it.
Only "problem" is, the highest rent for these homes is in the $600's, and the rent bubble hasn't even deflated yet.
Buyers at this auction must have believed we already hit bottom. Two-time losers. They're all going to be sitting there with empty "investments" because there aren't that many renters and the proud new investors will have to drop the rent to $400 then they're back to a big fat negative on that auction win.
Round two!
Here we go!
Stupid just gets stupider.
I just cannot believe it.
January 28, 2009 8:24 PM
I have to agree with you. I live in Chicago and am still waiting to invest in rental and commercial properties. It is amazing to me that a three flat that sold for 900K in 2005 would sell for 400K. Just because it is half off doesn't mean it is a good deal. But even if you ran the numbers, you will still end up with negative cash flow. Despite this, the so called "investors" will buy. God they are foolish for doing so. I even asked a realtor at an auction who would be in their right mind to buy a property that is losing money and he told me that there are some investment companies who feel prices will bounce right back up. Amazingly stupid of them. I will still wait for the prices to crash even further. I think we are in the third inning of this real estate crash and as time goes on, people will be shocked to see how low prices can go (DEFLATION is here and here to stay for a long time).
Matthew 26:11
The poor will always be with us ...
Also, why isn't there any news of the Pay Option Arms that should start resetting big time in April?
Wow this sounds exactly like the homedebtor who was in foreclosure that I dated for a few months about a year ago.
Dumb move, I know. This was before I saw the light.
I'm sure everyone can guess how that turned out. I'm pretty sure she's now hooked on scrips, working back at WFC and more bitter than ever.
Needless to say she taught me a few lessons.
Anon 12:48,
There has been a little bit of news lately, but it was mostly in a 60 Minutes piece from about a month ago.
The problem with the Pay Option ARM as far as newsworthiness, is that the MSM doesn't think the general public understands it or cares.
I'd argue that both are untrue. The general public can grasp a basic explanation of the loan's toxic features, but it takes too long for our 30 second newsbyte society to stick around for it all.
While working at Countrywide from 2005-2006, I was required to attend no less than 9 trainings on "selling" a Pay Option. When I asked questions like, "what happens if the house goes down in value?"; or "look at how fast the MTA index is rising, doesn't that have a huge effect on the negative amortization?" - I was just laughed at.
What it came down to, is the less you understood about the Option ARM, the better you could sell it. I never sold one of those loans because I explained it too well to people who were interested and they wisely opted for a fixed rate loan.
I missed out on the big commissions by not selling it, but at least I have my conscience. To be fair, in my department, we were mostly churning Countryslave's portfolio, meaning just refinancing our own customers' loans to pay off their 1st and 2nd mortgages and credit card debt. I routinely brought people's back end debt ratio down from about 80% to 50-60%, which was acceptable by our underwriting standards. It was very alarming to me just how in debt these people were. I knew there was a problem obviously, just not how deep it truly was.
Thanks to HP and S&A, I know now, but long after I was sucked in to the mortgage industry.
I now work for a very respected brokerage now and tell all my clients to stay away from Real Estate and to trust their instincts about the Stock Market. Thankfully, I am allowed to say these things without anyone there to breathe down my neck and tell me to "sell the benefits" of what is basically debt and bad risk.
The truth about the toxic Option ARM and its abuses may be understood by the masses one day, but by then it will be too late to help its witting and unwitting victims.
True wealth is spiritual. Material things do not give life.
Riches to rags in 3 generations. This rule stands the test of time.
In thier defense, they were dumb enough to believe what they were saying, mostly.
Pour les Nouveau Poor:
What you gain on the round about, you lose on the swings.
Tant pis, n'est pas?
How come every broker out there that wants to handle my money is not doing terribly well himself?
If he was so Hot why is he working at all, and not spending time on his yacht?
Why is it he can 'Guarantee' me Huge profits....but he's living on the edge of debt?
Just askin
Gutless and Lazy wrote:
>Registered GOP voter: see servile psychophant.
Registered DEM voter: 1. uneducation loser with his hand out or 2. extremely rich individual living off an inheritance. or 3. dumbass
Registered non-partisian voter: the enlightened. (come to the light)
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