Property Grunt

Tuesday, June 03, 2008


Currently, the rich getting their respective asses handed them is prevalent theme in this economy. The New York Times most recent article on the woes of the riches of New York which has gotten alto of play on Gothamist and Gawker.

It has gotten to the point that the rich are now dealing with like normal which is consume enormous quantities of alcohol and food.

The drop in wealth has also exposed other personal problems, like bad marriages. Money — which bought jewelry or extravagant vacations — helped smooth over many of these difficulties, said Kenneth Mueller, a psychotherapist in the East Village who works with many Wall Street bankers and real estate developers. Now, he said, his clients “catastrophize” smaller bonuses or shriveling stock portfolios. “You have to remind them that there’s something that has always been there,” he said. “All the money helped mask the anxiety.”
The very wealthy can’t hide anything from their nutritionists and personal trainers, because they see the weight gain. Heather Bauer, a dietitian who works with many Wall Street executives who pay $600 to $800 a month for her services, says her clients have been eating and drinking more in the last six months. She sees results of this indulging each time they step on a scale, and in their journals that record what they’ve eaten.

The part I found most amusing was this

Other wealthy clients are cutting luxuries that they think their friends and relatives won’t notice, according to Mr. Del Gatto of Circa. At Circa’s midtown offices, he said, the seven consultation rooms have been busy with customers selling their precious gems. Some older couples, he said, are selling estate jewelry to help support their children who have lost Wall Street jobs. Bankers are paring down their collections of Patek Philippe watches. Wives from Greenwich and Scarsdale are selling 2-carat to 35-carat single-stone diamond rings. One recent client explained to Mr. Del Gatto that she was selling $2 million in diamonds she rarely wore, because her friends wouldn’t notice that they were gone.

Which brings me to Scarsdale. As everyone knows Scarsdale is probably one of the most prominent areas of Westchester. The taxes alone could make Donald Trump drop a load in his pants.

I have been hearing chatter about Scarsdale for the last 3 years that houses for sale are still lying dormant with nervous sellers on the sidelines waiting for a Christmas miracle. Unfortunately the information that I have been hearing has been purely anecdotal. And of the course official sources, like the town newspaper have put out the party line that everything is honky dory.

That is until now.

For the last couple of months I have been utilizing Hot Pads Foreclosures maps which has been quite useful. In a nutshell it uses color to determine the amount of foreclosures that are occurring in a region. If your blue your good and red your dead. It works just like the Homeland Security Threat levels.

Scarsdale for the last couple of months has been in the dark blue, which is pretty good but in my opinion for an area as wealthy as Scarsdale it should be ice cold. So yesterday, after reading the article on the woes of the rich, I did another foreclosure search and my jaw hit the ground.

SCARSDALE IS NOW GREEN! Yes. It has always been environmentally conscious but besides that. According to the foreclosure map, foreclosures are starting to rise. That is absolutely unheard in a town of this nature. But it appears the rich are not getting richer but are getting hammered along with the rest of the proletariat.

I knew this was going to get bad, but I didn’t think it was going hit these areas. So it appears there are some people in Scarsdale that are hocking their jewelry to pay for their mortgages, that is until they can sell. That is if that ever happens.