Chav Blows Through 9.7M Pounds in 8 Years

Originally Posted by Piobaire

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Ouch, really? The saddest group of people I know personally are the ones that are "rich" on paper with commercial real estate. In fact, they keep telling me the worse is yet to come for that segment.

Could be, although my guess is that leverage will be the real bad boy in that sector.

Originally Posted by Concordia

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Could be, although my guess is that leverage will be the real bad boy in that sector.

Really outside my area of expertise, but this is coming from several folks that built themselves impressive fortunes. They also might be extra-negative given how close they are to the situation. One of them told me he's basically selling assets (at the current discount of course) to keep his overall operations funded. Another told me his occupancy isn't so bad but he's having to deeply discount rents to keep his developments full. /shrug

Originally Posted by Piobaire

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Really outside my area of expertise, but this is coming from several folks that built themselves impressive fortunes. They also might be extra-negative given how close they are to the situation. One of them told me he's basically selling assets (at the current discount of course) to keep his overall operations funded. Another told me his occupancy isn't so bad but he's having to deeply discount rents to keep his developments full. /shrug


If someone can't cover expenses from diminished rents, that implies some mortgage expense. Anyone without that burden could end up picking up some tremendous deals when it all hits the fan.

Originally Posted by Concordia

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If someone can't cover expenses from diminished rents, that implies some mortgage expense. Anyone without that burden could end up picking up some tremendous deals when it all hits the fan.

True. Then again, if you have that type of cash to toss around, you're probably always going to be fine. I mean, I wish I had their problems.

Being that I live in the SW, we don't get many Brit transplants. In college, I roomed with a bona fide Chav. He was an epitome of the stereotype. I once asked him what his plans were after graduating college, and he said he'd rip up his diploma. Needless to say, the chav dropped out a year later.

The lottery curse strikes again.

Originally Posted by LabelKing

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He has certainly not aged well.

He looks like Kent Money in this one.

Originally Posted by Nil

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He looks like Kent Money in this one.

Nice high armhole on the shirt.

Looks like a Raglan sleeve to me.

I don't think this is terribly surprising, give someone who is bad with money a lot of money, what do you think they'll do? Sure, some might have an epiphany of sorts and might hire a financial planner to help them out, but for the most part I think most people will go about living their lives, simply spending more than they normally would on the same things they've always bought. If they were good savers in the past they'll be good savers in the future, if not, then not. The prize for the lottery doesn't involve wisdom , commonsense or knowledge, it is just money - so we shouldn't expect people to be wiser for it.

http://www.city-journal.org/2010/20_...-sympathy.html

"As it happens, an island next door (in Pacific terms) to the Gilbert Islands was home to an experiment in the sudden, unearned attainment of wealth. Nauru, a speck in the ocean just ten miles around, for a time became the richest place on earth. The source of its sudden riches was phosphate rock. Australia had long administered the island, and the British Phosphate Commission had mined the phosphate on behalf of Australia, Britain, and New Zealand; but when Nauru became independent in 1968, the 4,000 or so Nauruans gained control of the phosphate, which made them wealthy. The money came as a gift. Most Nauruans made no contribution to the extraction of the rock, beyond selling their land. The expertise, the management, the labor, and the transportation arrived from outside. Within just a few years, the Nauruans went from active subsistence to being rentiers.

The outcome was instructive. The Nauruans became bored and listless. One of their chief joys became eating to excess. On average, they consumed 7,000 calories per day, mainly rice and canned beef, and they drank Fanta and Château d’Yquem by the caseload. They became the fattest people on earth, and, genetically predisposed already to the illness, 50 percent of them became diabetic. It was my experience of Nauru that first suggested to me the possibility that abruptly distributing wealth has psychological effects as well as economic ones."

Originally Posted by Fuuma

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It would actually be cool if he had planned to burn through it all along but I doubt it.

I had the exact same thought. It would be a cool kind of nihilistic self destruction if he simply said "screw it, I'm just going to go full throttle until it runs out."

9.7M, after lump sum and taxes, the chav probably took home around 4M. He's a stupid prick, but blowing through 500K/year isn't exactly earth shattering. In any case, he's probably much happier collecting garbage. I do wish I have this problem through.

Say he had the 9.7M Pounds in even modest investments yielding 4% annually on average. That's 388K Pounds/year.

I think the lotto is nothing more than an interesting social experiment.

If your only excitement in life is spending money or being the center of the party than its no surprise when it all comes crashing down. If you get your jollies through smart investing then you'll probably be alright.

I think if I won the lotto, which is impossible because I dont bother playing, than I would probably pursue a PHD in finance.

Originally Posted by DNW

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9.7M, after lump sum and taxes, the chav probably took home around 4M. He's a stupid prick, but blowing through 500K/year isn't exactly earth shattering. In any case, he's probably much happier collecting garbage.

I do wish I have this problem through.

ya, it is pounds not USD. And I do not know how they do it, but not all lotteries are like the US. In Canada, we do not pay tax on it, and you get what you win (pretty sure about the last part).