Financial Retard of the Month, By Request

Our relationship was fleeting, but intense

 

We swear to God, we don’t go looking for this stuff.

Let’s just give Trent Hamm of The Simple Dollar the lifetime achievement award, Retard of Eternity, and be done with it. But even Trent Hamm at his cheapest doesn’t complain about the hand life dealt him. Far from it, in fact. He sees possibility in everything, even a gently used Ziploc bag or a toothpaste tube with a milligram of Crest left inside.

No, for complaining about the world and the curveballs it throws we have to go to the profane, portly woman at So Over Debt, the most self-defeating honoree we’ve had so far. Her site’s very subtitle illustrates the problem:

A single mom’s journey – not to financial freedom, because that’s out of reach – but to breathing room. 

What do we have there?

Self-categorization. Is it relevant that she had a child, and doesn’t have a husband? She thinks it is.

Pessisism writ large. “not to financial freedom, because that’s out of reach”. Why? One of the Control Your Cash principals was a single mom at one point – and a college dropout, unlike the highly educated Ms. So Over Debt – and financial freedom wasn’t out of reach for her.

(This is why we started the RotM series. Most of our winners so far have been people who live their lives not even realizing that they are living, breathing bad examples. People who can’t get ahead financially and can’t understand why, even though the answer is staring them in the face [if they happen to be looking in the mirror.]  Buy assets, sell liabilities isn’t just a mindless mantra to be recited, it’s a never-fail method for building wealth. And something this month’s winner would never bother applying to her life, not when she can make excuses and blame the world.)

Ms. So Over Debt’s 2-part bio illustrates the problem in even greater detail. She explains why she’s poor, or at least incapable of financial freedom. She had a kid at 15, spent tons of money on a college degree that enables her to now take home somewhere in the neighborhood of $600 per pay period in her chosen field, got divorced, and smokes. We’re not sure about you, but that sounds to us like the kind of person who should be writing about personal finance. But still, every part of her misfortune is someone else’s fault:

First, my landlord called on Memorial Day to tell me he was selling our rental house out from under us. We had lived there 2 1/2 years, always paying the rent on time, and I was a blubbering mess by the time I got off the phone.

From “under (you)”? Because you have a say in the transfer of someone else’s house? It doesn’t matter if you paid the rent on time, or never did. The house is the landlord’s to sell as he wishes. That doesn’t mean he can kick you out before your lease is up, assuming you’re honoring its terms, but his decision to sell an asset has nothing to do with your promptness or delinquency. Although it’s adorable that you think it might.

And if being told the house you live in is being sold (or more to the point, that your lease isn’t being renewed) results in crying, how do you handle legitimate crises?

In February 2005, my grandmother died unexpectedly on my 22nd birthday.

Multiple-choice quiz time. Will she use the death of a grandparent as an excuse for some other misfortune?

  1. Yes
  2. No

The answer is c), Of course.

I watched helplessly as my entire family fell apart, each of us turning to our own (mostly unhealthy) coping skills to make sense of what had happened.

Lady, grandparents die. It’s what they do. Most of us grieve briefly, remember the good times if any and move on. But we have to admit, your method sounds way more exciting.

This woman is exemplary for showcasing how to never, ever build wealth:

  1. Get pregnant at 15? Check.
  2. Smoke? Check.
  3. Get divorced? Check. Not that getting divorced isn’t sometimes necessary, but…well, you can read our comment on her site to see our argument. Assuming she hasn’t deleted it yet.
  4. Find the cloud in every silver lining? Check. We’d include a representative quote from her, but it’s hard to pick just one. So here are 5:

Last Friday, my doorbell rang. I was expecting a friend, so I opened the door with a big smile on my face. Imagine my surprise when I saw a sheriff’s deputy standing on my porch! He was serving me with papers from the collection agency. They are suing me for the $800 I owe (plus some lovely legal fees). I have 20 days to respond, otherwise they’ll be granted a default judgment against me.

First, let me tell you how humiliating it is to have a cop show up at your door. This has never happened to me before. And I know the cop, which made it even more embarrassing. He looked very apologetic and promised he didn’t look at any of the paperwork, which I know is a total lie. Also, Jayden had a friend over to spend the night. This friend had never been to our house before.

And then, seconds later:

Unfortunately, my options are very limited. As you all know, my emergency fund is pretty much depleted thanks to my crappy paychecks. 

Which links to a post titled “I’ve Really, Really Screwed Up”, which contains the following piece of inspiration:

When the other therapists were trying to convince me to come to this job full time, they mentioned that the first few pay periods were pretty rough. I was prepared for that. Now that I’m there and I’m freaking out, they’re telling me it’s more like the first YEAR before all the billing catches up and I start getting real paychecks. Thanks, assholes.

Then, the dizzying crescendo:

I have spent the past few weeks searching desperately for a job. I even talked to my old boss about going back to the job from hell

We’re sure the old boss would be delighted to know how highly you think of the old job. Hell, who wouldn’t want to hire someone like that? Grab her now while she’s still on the market!

The larger point is that living at the mercy of bosses (whom you might have to go back and grovel to) is no way to live. No wait, there’s a still larger point. Which is that effort is no substitute for results:

It’s kind of ironic that I worked so hard to build a safety net and make good choices, yet I’m sitting here with no safety net left. My income is all I have to depend on – I don’t have a spouse to pick up the slack.

It’s awesome when a slow learner proves our points for us.

First off, you didn’t make good choices. You made mind-boggingly awful choices, such as starting a new job without even knowing the pay scale. 

And let’s requote her quote, seeing how poignant it is:

My income is all I have to depend on – I don’t have a spouse to pick up the slack.

See above. Having a spouse to pick up the slack, or at the very least not eliminating a spouse from your life, is a great way to not be poor.

We were going to present her with the Retard of the Month prize (a carton of Marlboros, a trial membership to Match.com, an illustrated brochure that explains how to safely use a treadmill, and a voucher for one free class at the trade school of her choice, so she can learn at least one marketable skill), but fate intervened. Not only did she prevent us from commenting on her site, she took her ball and went home.

It takes an especially sensitive little girl to a) forbid non-spammers from posting on her site, and b) deny them access to her server. No wonder she cries when her landlord makes a transaction she doesn’t like. Ms. So Over Debt, this one’s for you. Try not to cry (again).

 

Financial Retards of the Month

Last month we reported on what we were fairly certain was a parody, and no one’s disproven our hypothesis so far. But the line between parody and reality is almost nonexistent in 2011 America. Case in point, the idle hundreds who have decided to do their part for humanity by making Occupy Wall Street their full-time volunteer occupation over the last few weeks.

An axiom that any middle schooler should know:

-Humans create wealth by toil and exchange. That doesn’t mean that working and trading will guarantee you riches, but rather that you have to do one and/or the other to build anything of lasting value. They’re necessary conditions, not sufficient ones. Wealth doesn’t fall from the sky, nor from the hands of elected officials.

We found a website where Occupy Wall Street protestors have chosen to write their laments. There are hundreds of them, but once you’ve read a few you can create the rest from a template. Which would read something like “I willingly took on tens of thousands of dollars in debt without calculating the estimated payoff. This is rich people’s fault, for some reason. And I probably have a child. Feel sorry for me.”

Our sampling of the more erudite protesters begins with Roger “Buzz” Osborne, founder of proto-grunge legends the Melvins, who apparently ran out of money halfway through the gender reassignment surgery:

She’s apparently serious, or at least earnest enough not to pick up the irony in the opening sentence of her diatribe.

You were dumb enough to enter an “academic field” that even the dippiest Kardashian sister could have told you wasn’t going to lead to a job. No one forced you to rely on food stamps, nor WIC (that’s the Special Supplemental Nutrition Program for Women, Infants and Children, for those of you too busy working to feed your kids to have kept tabs on which taxpayer-funded teats are out there for you to suck at.)

If these are literally the 99% – if only one out of every 100 Americans isn’t borrowing money she can’t pay back from people who had no choice in the matter for degrees with no utility – then it’s already over. Maybe we can start again in Antarctica.

Oh, you fatuous whore. You have the only fixed-rate adjustable-rate mortgage in history. Which is it? Fixed, or adjustable? You put “fixed rate” in quotes, which presumably means we’re supposed to take the term figuratively, but then why did you refer to it as such? Were you hoodwinked by a mortgage lender’s assistant whom you were too dumb to question? Did you make a six-digit financial decision armed only with your guile, too stupid to even bring along a representative who might know a little more about these transactions than you do?

Well, can’t your husband help take care of his 1-year-old and the baby growing inside you? What’s that you say? You’re not married? Never were? Two different fathers? Well, that’s not right. You shouldn’t be held responsible for your decisions.

“I can’t get a job, because I have no work history. I have no work history, because no one will hire me.” Taken to its logical conclusion, that would mean that no human has ever held, or could ever hold, a job. What is this “entry level” of which you speak?
Hey sister: I understand. My father drank and it made me an idiot. I mean, my being an idiot made my father drink. One or the other.

Or this one:

If borrowing thousands of dollars to go to school while spreading one’s legs and getting inseminated (by someone who didn’t stick around to help raise the kid) isn’t a sure path to self-sufficiency, we don’t know what is.

Or this one:

Her initial complaint is that in her chosen line of work, customers are mean to her. Yes, welcome to the adult world, but the logical inconsistencies here are all over the place. She “can’t” find a job in her field, yet “refuses” (as if ultimately it’s her decision) to work in “their evil industry”.

She doesn’t specify what the evil industry is, but she inadvertently brings up a point.

You know how not all protesters are lazy hippies, and not all Jews are cheap, and not all homosexuals are child molesters*, and not all Mexicans are illegals? Well, that kind of blanket stereotyping works just fine when you’re discussing “Wall Street CEOs”, who seem to be the casus belli of every single protestor.

Our dour young miss isn’t complaining about every company that’s headquartered literally on Wall Street. That would include the American University of Antigua’s college of medicine; architects Skidmore, Owings and Merrill; and any number of newsstand operators and hot dog vendors.

So what exactly is a “Wall Street CEO”, anyway? “Wall Street” is what they call a metonym. Wall Street is where the New York Stock Exchange is located, and thus the latter is often identified with the former. By its narrowest definition, then, “Wall Street CEO” should mean any CEO of a company listed on the Dow. Who exactly are those people? Here they are, with what they studied in college:

Microsoft – Steve Ballmer (mathematics)
Alcoa – Klaus Kleinfeld (economics)
Kraft – Irene Rosenfeld (Ph.D in statistics)
3M – Sir George Buckley (Ph.D in engineering)
AT&T – Randall Stephenson (accounting)
Boeing – Jim McNerney (MBA)
Not only has Boeing not received bailout money, the Obama administration is attempting to prevent it from building a plant in South Carolina and hiring thousands of skilled workers.

Caterpillar – Doug Oberhelman (finance)
Chevron – John Watson (economics)
Cisco – John Chambers (business)
Coca-Cola – Muhtar Kent (economics)
DuPont – Ellen Kullman (mechanical engineering)
Exxon Mobil – Rex Tillerson (civil engineering)
Hewlett-Packard – Meg Whitman (economics)
Home Depot – Frank Blake (unspecified bachelor’s)
Intel – Paul Otellini (economics)
IBM – Ginni Rometty (computer science/electrical engineering)
Johnson & Johnson – Bill Weldon (biology)
Travelers – Jay Fishman (accounting)
Pfizer – Ian Read (chemical engineering)
Procter & Gamble – Bob McDonald (engineering, West Point. Also a captain in the 82nd Airborne)
Verizon – Lowell McAdam (engineering)
Disney – Bob Iger (television/radio)
United Technologies – Louis R. Chênevert (commerce, production management)
Walmart – Mike Duke (engineering)
McDonald’s – Jim Skinner

This one’s awesome. He never graduated college, and we can’t even determine which one he attended, if any. He spent a decade in the Navy, got out at 27 and became a restaurant manager trainee. That’s right, his ambition was to manage a McDonald’s. (Not “manage McDonald’s”. Manage a McDonald’s.)

Merck – Ken Frazier (political science) (And Clay Matthews III was a college walk-on who became a Pro Bowler. It happens.)
JP Morgan Chase – Jamie Dimon (economics)
General Electric – Jeff Immelt (applied math)

Oh, and this is what we’ve building toward:

Bank of America – Brian Moynihan (history)
The one Wall Street CEO whose company might deserve the protesters’ wrath just happens to be one of only 2 with a confirmed liberal arts degree.

These people’s workplaces are easy to find, if not their homes. Yet the protestors choose to rally elsewhere.

Aside from Bank of America, which of these companies are keeping the 99% down? Is it Johnson & Johnson, exploiting our hopeless addiction to cotton in swab form by charging us an exorbitant 1¢ apiece for Q-Tips?

Or Hewlett-Packard and their insistence on undercutting and running every mom-and-pop neighborhood laser printer manufacturer out of business? Maybe it’s Pfizer, makers of Zithromax, which has saved many a hippie from a chlamydia or syphilis outbreak.

Whichever, the cops recently kicked all the protestors out of Zucotti Park, supplanting 9/11 as the NYPD’s greatest moment.

*All Catholic priests are, however.**

**Before you bombard us with hate mail, that was sarcasm. We’re exposing journalists’ habit of mentioning Catholic priests every time a pedophilia scandal arises, e.g. the completely secular Jerry Sandusky affair.

 

This article is featured in:

**Top Personal Finance Posts of the Week-Chinese Buffet Edition** 

**Carnival of the Vanities-December 22, 2011 Edition**

Financial Retard of the Month, Assuming She Exists

History’s 2nd-greatest monster (Michael Vick is still #1.)

If you’ve got $10 to donate, and had to give it to an individual rather than a formal charity with a fundraising department and a celebrity spokesperson, whom would you choose?

  1. A 7-year-old pediatric AIDS victim?
  2. The disfigured victim of a hit-and-run accident?
  3. Kelli Space, an able-bodied, perfectly healthy, 20-something college educated woman who rang up $200,000 in student loan debts?

If you answered anything other than A or B, you’re part of the problem. Believe it or not, Kelli Space[1] borrowed this obscene amount of money to educate herself at Northeastern University. Even more incredibly, she begged for money and found enough idiots to contribute $12,000. Including at least one person who donated $1000.

Ms. Space buries it in on her website, but guess what her degree is in?

Civil engineering. She’s the only engineer on the planet who can’t find work. Can you believe that?

Of course you can’t. We lied. Her degree is in sociology, a word derived from the Greek for “unemployable leech who refuses to be productive.” And which embarrasses those who major in it to the point where they go out of their way to hide it.

Ms. Space is secretive about where she works, where she lives, how much money she makes, and what she looks like. (The only photos we can find of her appear to be straight out of a Corbis gallery.) Also, we can’t find her on LinkedIn, which is odd for a college-educated 23-year old who needs to make connections and is savvy enough to have been featured on major websites.

Nor could we find her on Facebook. And of the four Kelli Spaces who show up on US Search, the youngest is 35 years old. In at least one interview she claims to have been asked to write about education for The Washington Post, but the next article we see from her there will be the first.

Alright, the more we research this the more we’re convinced she isn’t real. But “Kelli” entered the public arena over a year ago, being featured on Gawker as an example of someone whom the education-industrial complex has abused by lending her money she couldn’t afford to pay back. If you go to her website (which WhoIs.net shows is owned by EduLender, a company that streamlines college aid forms and which “Ms. Space” has partnered with), there’s a donation form that takes you to PayPal. It wasn’t worth the minimum $5 donation for us to see if PayPal will indeed process the transaction.

If the purpose of the Kelli Space story is to rile people up on both sides of an issue, fomenting antagonism between the “she made an innocent mistake” crowd vs. the “she needs to be an adult” contingent, it worked. And if the purpose is to get the inflammatory curmudgeons at Control Your Cash to devote a blog post to questioning the value of post-secondary education, it worked in spades.

We’ve already demonstrated how incurring student loans is a path to anything but riches. Even a huge percentage of lawyers are still paying off their student loans well into their 30s. Not that the practice of law contributes to overall human happiness any more than whatever a liberal arts degree qualifies its recipient for, but at least lawyers (unfortunately) make decent salaries.

Is a college degree really worth it?
That’s like asking “Should I invest my money in a stock?” “It depends” is the only satisfactory answer.

The aggregation of human knowledge throughout history has two major components – discovery, and debunking. Don’t underestimate the latter. In centuries past, at different times, the smartest people on the planet were convinced that

  • the Sun is stationary;
  • light travels through something called ether;
  • you can turn lead into gold with enough heat;
  • your body has 4 major fluids that need to be kept in balance – blood, phlegm, black bile and yellow bile. (By the way, this belief predominated for 2000 years.)

Or more recently,

  • an economy is too complex to be entrusted to anyone but the intellectual elite, and;
  • an education is the most important thing in the world, to be achieved at all costs.

It isn’t. For plenty of hardworking, earnest, ambitious high school graduates, the worst thing they can do is pile on more years of book-larnin’ that come with a crippling price tag. There are trade schools whose tuition is barely 1% of the cost of a 4-year degree at Northeastern, and that’s not even factoring in the inevitable interest payments that come with financing a university education. At some point, an economically independent person blessed with even the least common sense learns to strike a balance between potential (that college degree that we’ve decided is more important than health or well-being), and actual (getting out in the marketplace and doing something that earns money.) If it takes The Legend of Kelli Space to bring that truth to light, then maybe “she” has found her purpose after all.



[1] Anagrams include “peace kills” and “please lick”. Are we sure her name isn’t a pseudonym? Heck, maybe her entire story is false. There’s no video evidence of her, merely audio evidence on some radio show that no one listens to. She’s the Osama bin Laden of upside-down college graduates. In the event that it turns out this entire thing was a hoax, consider us de-pantsed. Until then we’ll assume her story is true, especially since we’ve already documented similar ones.

**This article was featured as a Top Personal Finance Post of the Week-November 4, 2011 Edition**