Many of the Rich Are Becoming Poor
Down And Out In Beverly Hills
by Jeff Davis
Here’s a story about the poor little rich folks, who are starting to feel the pain of the worsening recession. Bloomberg News reports: “The worse the economy gets, the better it is for Jordan Tabach-Bank. ‘Business is booming,” said Tabach-Bank, the chief executive officer of Beverly Loan Co. in Beverly Hills, California. Beverly Loan is a pawnshop. Not just any pawnshop, but the kind that caters to people who hock Cartiers, Harley- Davidsons and Oscar statuettes when they need cash… They really need it now, Tabach-Bank said from a third-floor office, protected by bulletproof glass, off his showroom in the Bank of America building near Rodeo Drive. ‘I’ve never seen so many bankers, lawyers, doctors and actors with valuable things to pawn,’ he said. He pointed to an 18-carat white gold bracelet with 69 diamonds ($2,900) and an 18-carat yellow gold Rolex Yachtmaster II (a steal’ at $18,500)… With credit drying up at regular lenders, ‘in many cases now, we’re not just the bank of last resort,’ Tabach-Bank said. ‘We’re the bank of only resort.’ ”
There was a time when people didn’t live beyond their means. When they started out buying a small house and then bought a bigger, better house when they were more successful. Unfortunately, every major city in the US, no longer has cheap, affordable small houses because of the huge minority populations. All the lower-priced houses in big cities are now in gang-infested neighborhoods. The small houses in the surviving safe White neighborhoods have been bulldozed and replaced with seven room “pocket mansions.” This means yuppies are forced to buy very expensive homes right from the start, which makes them much more vulnerable to foreclosure if the job market goes bad. (more…)