Hey, the rich had to scale back, too!

[Omaha Steve]

http://www.omaha.com/index.php?u_page=1208&u_sid=10524556

Published Sunday December 28, 2008
Hey, the rich had to scale back, too!
BY DANE STICKNEY
WORLD-HERALD STAFF WRITER

One $4,000 Rolex instead of four. One bottle of $300 Champagne instead of three of slightly lesser quality. Eight pricey electronic gadgets instead of 10. A secondhand Gucci bag for $275 instead of $1,000 new.

The rich still bought high quality this holiday season. They just skimped on the quantity.

Sure, they still may have a whole lot more cash than the average Joe, but wealthy folks are feeling the pinch of the miserable stock market and ailing U.S. economy, too.

Net worth has declined at its sharpest rate in a half-century — about 5 percent from the second to third quarters in 2008, according to Moody's Economy.com. The Dow is down 36 percent for the year.

Those dour circumstances pushed national luxury sales down 34.5 percent in early December compared with last year, according to SpendingPulse, a data service of MasterCard Advisors.

Local high-end sellers say the rich have adjusted by still buying nice things, just fewer of them.

The rich being a little less rich may not appear to be a big deal. But if they don't buy that second Rolex, it could extend the rough financial times for everyone.

FULL story at link.

[Tuesday Afternoon]

1. ~

:nopity:

[Sarah Ibarruri]

2. Oy vey. I even personally know one rich guy who had his Rolex stolen and is upset because he

has to hold off to buy another one just like it since it was so expensive and the economy is "not good" for him. Ahem!

:nopity: :nopity: :nopity:

[notadmblnd]

6. Too cheap to pay for insurance on the watch?

That figures.

[pitohui]

9. the insurance on the watch is not worth it

riders on art, jewelry, etc. are often such that if you don't have the object stolen every 10 years then you come out way behind

you may believe that your homeowner's insurance does cover your art,jewelry, watches, etc, in that case, you have a rude awakening coming, read your policy again

it isn't a matter of "cheap," it's a matter of it's a bad bet and a stupid decision

insurance is to protect you from losing things you can't afford to lose, for instance, wrecking a car, or seriously injuring someone, or developing a serious disease -- insurance for trivia like rental car insurance or riders on jewelry that, if lost, oh well, your life is not changed in any way and you can go on fine without it...that type of insurance is a bad purchase

i don't criticize the guy for not insuring the rolex, i cricitize him for whining when he had a turn of bad luck, i suppose when he goes out gambling he whines and hurls nasty words at the dealer when he doesn't win every bet there too

[Sarah Ibarruri]

11. You must know this guy. He DOES go out to the Seminole casino here and whines his butt off

when he loses thousands of dollars.

[Fire1]

14. I read my policy annually, looking for the section that specify's

'replacement value.' I lost a pearl/diamond earring and the insurance co. paid for it's replacement at it's CURRENT value.

[Statistical]

15. All HO insurance policies cap limits for certain asset classes

Cash, Jewelry, Firearms, Art, Stamps/Coins, Jewelry (and a $4K for a watch is considered Jewelry :puke:)

No policy has an unlimited rider for any of those categories.

A $4K watch wouldn't be covered past the asset class limit (usually $500 or maybe $1000) without a separate rider.

Otherwise the potential for a large loss for the insurance company exists OR fraud.
"BTW Allstate I had 22,000 watches in the house. I am a collector. Can I get my check for $2.2 million please"

If anyone has large amount (say more than $500) of:
Cash
Jewlery
Firearms
Art
Stamps/Coin
Rare Books
Antiques

you should look at your policy closely. If you can't find a limit talk to insurance company don't assume there is no limit because there is and it will suck to find out after you have a loss.

[Sarah Ibarruri]

10. Hadn't even thought bout that! You're right! The story of how he got held up is really bizarre

They tied his hands behind his back so loose that he was able to get himself out of it and call 911.

[samplegirl]

3. Those poor rich people

[OhioChick]

4. "Wealthy folks feeling the pinch?"

:nopity:

[Franzia]

5. Adding another violin to the symphony...

:nopity:

[pitohui]

7. who fucking cares

no, sorry, that's bullshit, the rich man not being able to afford a second rolex is not a sad story for you and me

a sad story for me is my 15 years w.out access to health care

your sad story? probably if not yourself then a friend or family member who gave up on a medicine so they could continue to eat

the rich fuckwit being able to buy a second rolex (also known as the 1980s, 1990s, and most of the 21st century until the current crash) didn't help us one fucking bit

do they really think we're too stoopit to notice?

the rich had everything and we STILL had to choose between food and medicine

[pacalo]

8. If you want in-depth details about how sickening rich people can be

you need to look no further than Bravo's "Real Housewives of ('Atlanta' or 'Orange County').

Money is thrown around frivolously like a box of Kleenex. $18,000 spent on an 11-year-old's birthday party & the birthday girl received a $1,600 designer purse from her mom.

I had the Bravo channel on the other day when I fell asleep & this was on when I woke up.

[Skittles]

12. anyone who spends $4000 on a watch needs an ass-kicking

these folk are sickening

[leftofthedial]

13. two-thirds less champagne (by volume)

could translate into much less trickle down for the rest of us.