Originally Posted by FidelCashflow
It's like whenever I see a straight-up guido in a Ed Hardy t-shirt driving a range rover, cadillac escalade, or a dodge viper. They look like total meat-heads, and I just wonder "maybe this guy has a trust fund, or is a club owner or something" I just can't wrap my head around it.
I have a pretty high credit rating, but even if I took all my savings and went to a bank that was giving irresponsibly large loans, I still don't think they'd give me enough money to buy a house and a car like that. Surely at some point the bank considers your income as a sign of your ability to repay a loan.
A big part of this is selective perception - you NOTICE when the driver of the Range Rover etc. is a "meat head" or the like, but your attention isn't being drawn by older or conservative-looking people driving luxury vehicles so you're not developing an accurate model of the economics.
If you sit at a busy corner for an hour, and count the "guido" drivers of luxury vehicles versus corporate/conservative/educated/whatever-looking drivers of same, I think you'll sharply reevaluate the percentage of these cars being driven by which type of driver.
And it's not necessarily that they're simply financing things by debt (or not that they're doing this any more than the safely corporate-looking drivers are.) There are myriad legitimate ways a blue-collar or street-looking person might make "fat stacks" - they could own a rim shop or towing company, a repo outfit, a club or bar; they could be a successful home theater installer, own a roofing company... one can go on and on. They could even be a waiter - a waiter at a high end eatery can take home $500+ a night in tips. Plenty of ways to rake it in sans college degree.
Bear in mind, too, that an entrepreneurially-minded person (even a "guido") who eschews college in favor of working right after high school has 4+ years head start earning income over a college grad - while this is meaningless for the Wallmart clerk type, it can be significant for a young person who has learned a trade (installing car sound systems, working in a body shop, selling cars).
The main downside of high-paying blue-collar trades is lack of scalability, but there's an entrepreneurial workaround - the cook opens a restaurant, or the mechanic a chain body shops. Rare, but it does happen often enough to result in an Ed Hardy clad meathead occasionally rolling by in his Bentley Supersport