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June 8, 2009

Dose of Reality for Trust Fund Kids

Reality (along with a little schadenfreude) has come to the post-college rental market in Williamsburg: According to an article in The Times this weekend, the twenty-somethings who've been able to rely on Mom and Dad when the first of the month rolled around are finding that they have to come up with the rent the old-fashioned way now that the older generation is struggling more under the weight of the financial crisis. And while having less time to play in a band or work on a canvas may not be music to the ears of those used to being on the receiving end of parental largesse, some who watched jealously without help can't help but take some pleasure in their neighbors' misfortune. “If I’m going to be completely honest, it does make me feel a little bit better,” said one struggling wallpaper designer. “It’s bringing a lot of Williamsburg back to reality.”
Parents Pulling the Plugs on Williamsburg Trust-Funders [NY Times]
Photo by Ando228

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Do you blame the kids for taking what the parents dish out? No, you blame the parents for raising their kids in a entitlement environment.

The kids you pity because once that safety net is yanked, they are left with nothing.

Posted by: the chicken at June 8, 2009 10:30 AM

It seems to me that if you're going to be resentful of others' having more money than you then perhaps "wallpaper designer" is not the profession you should enter........

Posted by: prospectplacer at June 8, 2009 10:32 AM

chicken, you are right, but you gotta love that line - "They say, ‘You want me to work eight hours?'"

Posted by: Montrose Morris at June 8, 2009 10:35 AM

there's going to be that ironic sting now when they re-listen to Pulp's "Common People"

Posted by: goldie at June 8, 2009 10:36 AM

chicken I couldn't have said it better myself.

Posted by: TownhouseLady at June 8, 2009 10:36 AM

"It seems to me that if you're going to be resentful of others' having more money than you"

the chance that you will be happy in life is about 0.00000000005%.

Posted by: northsloperenter at June 8, 2009 10:38 AM

http://www.youtube.com/watch?v=JQnsN3um-iQ

Posted by: daveinbedstuy at June 8, 2009 10:38 AM

I did laugh/groan at that MM (ps welcome to Team Reasonable!)

thanks THL. Having most definitely not been born with a silver spoon in my mouth, I do wonder whether I am unfair in my judgement of others sometimes - in this case though, I'm pretty firm in my convictions.

Posted by: the chicken at June 8, 2009 10:41 AM

WOTD for these kids: "Paycheck" - that's what you get when you WORK

Posted by: more4less at June 8, 2009 10:42 AM

Oh dear - look at what little Miss Calvert got up to. Looks like daddy spared the rod...

http://www.freewilliamsburg.com/archives/2008/08/misha_calvert.html

Posted by: the chicken at June 8, 2009 10:44 AM

Hilarious. Does this mean that since the parents are no longer paying the rent that there'll be less helicoptering?

Posted by: DeLepp at June 8, 2009 10:48 AM

Such typical NYT B.S. - no reporting, just cheap Post-like headlines and then drivel.

Look at the "facts" - ONE mortgage broker (very reputible bunch there) says that 40% of applicants have parents contributing to the downpayment.

WELL - lets ask

Is it possible that this Broker is popular amongst a certain group of buyers for example upper class suburban transplants) - and therefore the REAL number is far less.

What is the NORMAL rate of family contributions for 1st time homebuyers (bet it is reasonably high across ALL buyers)

Here is another "fact" from the article -"20 percent of the applications listed investments that gave the young buyers $3,000 to $10,000 of monthly income."

- Well - lets ask

What is a "young buyer" - cause that matters doesnt it?

What does this investment income mean? - I mean these are +500K condos generally - is it so suprising that 20% of the people might have some investments (that have nothing to do with trust funds?) - btw - the counter is that EIGHTY PERCENT of the buyers apparently have little or no investment incomes - so are these really "trustfunders"?

Look I love to bash idiots who spend big money (especially their parents money) to be (pretend) artists and creative types - pretending to be "keeping it real" in Brooklyn and denouncing Corporate America - all the while living off of the earning of their "capitalist pig" relatives.....and sure it makes a great story for the Sunday RE section BUT.....

THIS IS NOT REPORTING...this is simply a reporter taking public stereotypes, reaching a conclusion and then filling in the article with silly anecdotes and unverifiable pseudo-facts.

NY Times has become a rag.

Posted by: fsrg at June 8, 2009 10:49 AM

u know who is really going to be hurting from this? all the coke dealers in williamsburg and bushwick. that's where most of these naive parents' money went anyway.

*rob*

Posted by: PitbullNYC at June 8, 2009 10:51 AM

Parents giving their children money for a permanent home and thus setting up a better likelihood of generational wealth is one thing.

Parents supporting their children fully while they faux-bo around New York is another.

Posted by: infinitejester at June 8, 2009 10:52 AM

the chicken:

There is a difference of being resentfull of people with more money than oneself (or trustfunds) and being resentful of people with college educations who somehow slurch into their late 20s without ever managing to get themselves a real job. I dont resent parents trying to help out their kids, what I do resent is spoiled little hipster brats with holier-than-thou attitudes who think its their God given right to waste their lives making crappy esoteric music on daddy's hard earned dime.

More4Less has got it right man...PAYCHECK. JOB. RESUME. GAINFULL EMPLOYMENT. These are all word that should be added to the hipster lexicon.

In short, GET A FREAKIN' JOB!!!

Posted by: clintonhillbuyer at June 8, 2009 10:53 AM

There is a “giant stigma,” she said, for Williamsburg residents who are not financially independent.

If that's the case, then why on earth would she agree to be quoted and photographed for a newspaper article? Are people really that desparate for attention?

Posted by: Sparafucile at June 8, 2009 10:53 AM

Somehow - if you could really measure this thing - I bet there are far far more dependent young adults living in UES and Murray Hill than in Williamsburg. Those with willing and able to subsidize their kiddies after college would much prefer they live in doorman bldg in neighorhood of similar demographic to area where they raised the kid.

Posted by: Petebklyn at June 8, 2009 10:55 AM

Guys it's over...

The What

Someday this war is gonna end...

Posted by: Return of The What at June 8, 2009 10:56 AM

well sometimes it is frustrating. you know, being turned down for an apartment that you CAN afford on your own in your 30s and then seeing a landlord who will rent the same apt to someone who is 21, no job, but parents are a co-signer.?! grrrr yes bitter - *party of one*

*rob*

Posted by: PitbullNYC at June 8, 2009 11:02 AM

That trustafarian construction guy wanting to live in a non-union construction is really confusing the stereotyping.

Posted by: dittoburg at June 8, 2009 11:03 AM

at least they're consistent in action when they rail against evil capitalism and hope for redistribution of wealth. oh, except for the pesky fact that they're among the biggest consumers and label whores.

Posted by: goldie at June 8, 2009 11:10 AM

while i grew up solidly upper middle class, attended college with true trust fund kids. these people have income off of a huge pile of money that is willed to them by previous generations and not given to them by their parents.

the use of the word trust fund by curbed and the like to describe parents giving kids a couple of bucks, is silly.

agree that this article is poor journalism. no part of me believes that 40% of purchases is by young 20 somethings who are entirely funded by income outside of their employment. it's bull. there are no stats to back this up. there are, however, many 20 something renters.

also, there are actual artists, musicians and the like in williamsburg who work hard and are successful and not "pretending" or anything else so ridiculous. just this weekend met a couple that have been in bburg for over 10 years - both artists, and the husband heads up a graduate arts program for a major nyc university.

Posted by: wine lover at June 8, 2009 11:14 AM

What is bunch of ill-reported drivel slanted to provoke contraversy and to confirm stereotypes without illuminating. Perhaps there would be a venue for such "articles" - I hear there is something called "blogs."

Posted by: Putnamdenizen at June 8, 2009 11:22 AM

rich grandparents are the best things in the world. If you don't have rich grandparents then you need to deal with life the same way that 99% of Americans deal with it.
Whether rich or poor, having parents or relatives co-sign a lease or mortgage is a major humiliation. Most co-ops do not even accept such co-signs.

Posted by: sam at June 8, 2009 11:23 AM

What amazes me, as always, is the sense of entitlement. There's nothing wrong with having money, even if it's money from your parents, but I add my voice to the "GET A JOB!!" chorus.

I disagree with the chicken's point about not blaming the kids. While they may have been raised in a certain environment, at some point they become adults able to think on their own and self-evaluate. If someone is really so unreflective that they've never thought, "hey! I ought to get a job and see what the world is like," there's something wrong.

Unfortunately our elite has almost completely lost the old values of service, hard work, and noblesse oblige. It used to be that virtually all sons of wealthy families were expected to serve in the military or work in an ordinary job for awhile. I think it was Dean Acheson who worked on a merchant ship after oollege, and many others started at the bottom and worked their way up the ladder of the family business. Of course they had a sense of security and got special treatment, but at least they weren't shocked at the idea of working eight-hour days.

Posted by: sixyearsandcounting at June 8, 2009 11:44 AM

Say Buh Bye Retards! Thanks for the memories!!!

The What (Tick.. Tick.. Tick..)

Someday this war is gonna end....

Posted by: Return of The What at June 8, 2009 11:52 AM

so they had to "slum" it for awhile?

isnt that what everyone is bitching about right now?

Posted by: Santa at June 8, 2009 11:55 AM

One of the main reasons people make money in life is so they can help their children. I'm sure these kids will spend the majority of their lives working "responsible jobs" - why begrudge them a few years of pursuing their dreams? sour grapes...

Posted by: gkw at June 8, 2009 12:03 PM

Some people just don't need to work that hard in life. That's the way it has always been. Fitzgerald famously wrote that we shouldn't judge the rich because they are different. Some people walk, some take the bus, some sail.

I took the bus this weekend in Clinton Hill, I was walking around tourist style. I have not been on a bus in a long time. I just got tired of walking. I was surprised to see when I got on that although the bus was very crowded I was the only white person, the only one, including the driver, on the bus. Now I ask you? Do we really think we've come a long way baby?

Posted by: sam at June 8, 2009 12:18 PM

Sam, you need to take the bus in Greenpoint.

Posted by: dittoburg at June 8, 2009 12:23 PM

I'm still confused as to how creative professions became so lucrative in the first place. Every other mother I met in Williamsburg was a stylist, yoga instructor or interior designer. And they were all buying those condos that my lawyer husband and I couldn't afford. (Not that we'd want to, since they were so small and crappy with too many bathrooms and located on brownfields, but I digress.)

So, yeah, who knows? I guess there is some la-la land where everyone makes $300K doing what they love, part-time and from home. Or at least there was, before the economic collapse.

I am actually pretty happy about the financial apocalypse.

Posted by: Heather at June 8, 2009 12:26 PM

ditto, why? is the reverse true?

I think that prior to 1990 or so New York City's racial apartheid was every bit as strict as Johanesburg's, although not legally mandated. It takes time for that to dissipate. I would imagine many generations.

Posted by: sam at June 8, 2009 12:28 PM

nearly, mainly white polish.

Posted by: dittoburg at June 8, 2009 12:36 PM

I disagree with Sam that having your parents help with a downpayment is a major humiliation. If we're talking about gifting the money, then maybe. But I feel like many folks borrow money from their 'rents (and pay it back) as a way to get into homeownership.

Posted by: havelc at June 8, 2009 12:38 PM

Heather, a lot of them are not as lucrative as they somehow appear, the money helping to pay for these places wasn't earned money.

Posted by: dittoburg at June 8, 2009 12:40 PM

whoever came up with all those theories about how poverty is inherited had it right. thanks mom! where's my down payment and trust fund :( grrrrr. luckily it stops here, with me. and i hope my sister turns into a full fledge lesbian so she doesnt continue the madness lol

oh i am sure in a mood today haha.

*rob*

Posted by: PitbullNYC at June 8, 2009 12:51 PM

Agreed, it's very weak reporting. The writer pieced started with a provocative topic, strung together a few anecdotes from a handful of subjective sources, and presents the results as evidence of a "trend." Laughable.

"I was surprised to see when I got on that although the bus was very crowded I was the only white person, the only one, including the driver, on the bus."

Here's more of the same. sam got on a bus, didn't see any white people other than himself, and on this basis concludes that we haven't "come a long way baby." Silly.

Posted by: East New York at June 8, 2009 12:57 PM

sam, i hope you refused to give up your seat! (i hope that didn't come out sounding bad)

*rob*

Posted by: PitbullNYC at June 8, 2009 1:13 PM

I didn't say that help with the down payment Is a humiliation, I said that having parents co-sign a mortgage or lease is. There is a big difference. A lot of people get a one-time boost from parents or grandparents. Co-signing means you are not credit-worthy enough or do not make enough money to carry the payments on your own and that the bank or landlord expects you to default.

Posted by: sam at June 8, 2009 1:14 PM

I can't speak for sam, of course, but I took his point to mean that his fellow melanin deficient brethren and sisteren are not using public transportation, not anything more racial or sinister than that. I got the impression he was not celebrating the fact, but commenting upon its oddness.

Posted by: Montrose Morris at June 8, 2009 1:25 PM

Fair point, Sam. My mistake.

Posted by: havelc at June 8, 2009 1:40 PM

The B67 is racially mixed. The B6 which goes from Bath Beach to New Lots is a fun ride and has good people watching too. I used to take it to work.

Posted by: infinitejester at June 8, 2009 1:45 PM

Montrosse, Yes, oddness. My point was that sometimes one is reminded that the intergration of Brooklyn neighborhoods is a slow process.
Clinton Hill is supposed to be a diverse community but you would never know it from the bus, which was by the way a very pleasant ride. Such a relief. I had been walking for miles looking at streets that I usually just ride through.
Buses are very handy, I should take them more, I rely too much on the subway.

Posted by: sam at June 8, 2009 1:51 PM

Sam, I occassionally take the bus from Clinton Hill to Brooklyn Heights. Most of the time, it's a pretty diverse crowd on that ride.

Posted by: more4less at June 8, 2009 1:55 PM

are buses in nyc fast and reliable? the only buses im used to taking are the short ones for a buck when i lived in jersey.

*rob*

Posted by: PitbullNYC at June 8, 2009 2:14 PM

"come up with the rent the old-fashioned way"

I love it. "Test Tube Baby!" - Robin Harris. Trust Fund Baby!

Wow, collapse everywhere.

***Bid half off peak comps***

Posted by: Brownstones Half Off at June 8, 2009 2:27 PM

Rob, I do not often take buses because I believe that they are neither fast nor reliable, however they have the advantage of being above ground, which means you can sightsee a little.

Posted by: sam at June 8, 2009 2:28 PM

"why begrudge them a few years of pursuing their dreams? sour grapes..."

Parents should help put their kids through college. Kids should work to achieve their own dreams. Even if they don't have to work, they should learn what work is like. See my above comment.

Posted by: sixyearsandcounting at June 8, 2009 2:59 PM

NYC is full of kids supported by their parents, also home to a lot of 30-year-olds who get down payment help from their parents. Not really sure how much this has changed due to the downturn.

BF says parking is easier in Williamsburg since December, but this could just mean more people have lost their jobs and/or are riding their bikes, so not as many cars around the Bedford stop.

Heather, your comment about condos cracked me up.

After the dot com bust in SF, the white hipster graphic artists who had very suddenly moved into the Western Addition very suddenly moved out again. It was very noticeable. They lost their jobs and went back to Ohio.

Willilamsburg, on the other hand, is more crowded than ever -- with all kinds of people -- as is Bushwick (with the hipster types). Bushwick was absolutely packed this weekend with people going to Open Studios.

Posted by: mopar at June 8, 2009 3:01 PM

The minute I buy a house, I'm buying that woman's wallpaper for the dining room.

Posted by: mopar at June 8, 2009 3:03 PM

Actually sam, I find the buses on the weekends are typically much more reliable than the subways, which are extremely unpredictable due to service disruptions. As for diversity, when I take the B41 bus from Cadman Plaza to Park Slope and beyond, I'm almost always the only white person on board in either direction, even when the bus gets packed. That's just the facts. I much prefer taking that bus than the subway on the weekends.

Posted by: Biff Champion at June 8, 2009 3:10 PM

Agree, sam. If you're not in a rush buses are good. When I go to South Slope or Greenwood Heights I either have to walk or take the R; the 65 or 67 may or may not happen by but I don't want to wait.

Posted by: infinitejester at June 8, 2009 3:19 PM

I grew up upper middle class and took a bit of time to, "ahem," find my way. My parents supplemented my income til I was 29. A good portion of that time I was in school, but not the whole time. However, they didnt provide huge amounts so I was motivated to learn to live cheaply and eventually figure things out on my own. (Lunch at Uncle Moe's was $5.24 including a drink). I eventually took a job that paid $35k but gave me a chance to learn in order to make more later.

There are kids whose families provide a much higher standard of living. For them, they have no economic incentive to succeed. Part of that is why they gravitate towards the arts, which are much more appealing than traditional white collar jobs. Without the children of the wealthy, who would produce our movies, write our books regarding the ennui of modern life, or make our purses from jeans bought at the Salvation Army?

Of course, most of them don't have any real talent, which is why it's so important they have mommy and daddy to fall back on.

Posted by: slick at June 8, 2009 3:25 PM

Its only the idle rich/trustafarians who have time for ennui.

Posted by: dittoburg at June 8, 2009 3:32 PM

My father always was, and still is, well-off.
His father was well-off too.
I have never gotten a dime from him.
He is a cheapskate when it comes to his kids. Just last weekend he was railing on and on about someone who spent a lot on a their kids who didn't deserve it blah-blah. One thing my old man hates is giving the kids any money. He'll probably die in debt, like Thomas Jefferson recommended.
I won't spend a lot on the funeral. Fair's fair.
I tend to spend too much on my kids.

Posted by: sam at June 8, 2009 3:54 PM

Hah, yeah, ditto, you don't say...

Regarding the bus, there's nothing like being on crutches for a few months to make you realize how important a transportation option with no stairs can be. I never really paid attention to the color of the people around me, but I have noticed buses are a haven for the elderly, the disabled, and anyone traveling with kids. I wish they'd solve the stroller/bus issue though. It's kind of insane.

Posted by: Heather at June 8, 2009 4:05 PM

Wow, this really is a sour grapes fest...what business is it of ours what other people do with their money? Terrible article anyway, as many have pointed out.

Posted by: collin85 at June 8, 2009 4:07 PM

Sam was speaking from a view point on Covert Race/Class warfare. Sam is a fucking douchebag! Just like the rest of the Assheads! Don't worry it's over!

The What (Buy a car)

Someday this war is gonna end...

Posted by: Return of The What at June 8, 2009 4:53 PM

gosh- who knew people resented artists and creative types so much? Maybe people gravitate towards the field because they love creativity and art and find finance, food service and desk jobs not to their taste. I've been in the arts all my working life in one way or another- my parents were working class, not rich so there was no trust fund, no cushion. It isn't fun and games- I love what I do and the arts and design affect us in ways most of us don't even think about. It isn't all Hollywood, funky design and ennui books. Maybe the trustafarians are getting way more hype than they deserve, but for the rest of us who do creative work for a living- its a profession, not a walk in the park.

Posted by: bxgrl at June 8, 2009 5:10 PM

bxgirl- I don't think people resent artists and creative types, just poseurs. I have lived in Greenpoint for the last 17 years and watched the change in the Northside over the years. I have met more "artists" who knew nothing about art history and could not enunciate an artistic vision if their lives depended on it. These people hold very little interest to me and garner no sympathy from me.

On the larger theme, people who contribute nothing, like these so-called adults, are a blight on a community. That has certainly been the case in Wmsbg/Greenpoint.

Posted by: orestes at June 8, 2009 5:35 PM

Ha! What you crack me up. I have been telling people for years who complain about bad mass transit to shut up and buy a car. The MTA is the government's way of saying to New Yorkers: buy a freakin' car like a normal person!

Posted by: sam at June 8, 2009 7:26 PM

orestes- I know quite a few also :-) and maybe it's just I'm not in touch with any trustafarians in the "creative arts" . Most of the kids I know of that age are working and earning their own money. My nephew started working summers as soon as he was old enough to get a job. All of his friends and cousins too.

I can believe that some kids these days seem to be living out the romanticized Victorian poor artiste fantasy, without the garret and the TB but I also blame the state of education. The arts and humanities have been losing ground in the schools for years. I've heard (and read) people saying they are unimportant and frivolous compared to math, science, etc. Isn't it possible that kids today in creative fields just don't get the background except what they absorb via media and the internet?

Posted by: bxgrl at June 8, 2009 8:26 PM

Bxgirl, I don't think a lack of art school is the issue. Rather the opposite.

Then again, I also think the entire twentieth-century ideal of the artist is somewhat problematic.

Posted by: Heather at June 9, 2009 6:56 AM

Those poor hipsters in garrets with their consumption.

Posted by: dittoburg at June 9, 2009 8:49 AM

Bxgirl- I agree that arts education is sorely lacking (it certainly was in my pre-college education) and perhaps you are right. Perhaps the lack of arts education has led to this dilletantism in which one thinks that because they can put paint to canvas, etc. that they are an artist. Without an understanding of the history of art and an appreciation for the special talents and skills involved in artistic creation, these new artists have no yardstick against which to measure whether they have any talent (esp. in the tangible arts). But this is the postmodern endgame- if everything is subjective, everything can be art. I personally find that notion trite. Ok, I'll step down from my soapbox.

Posted by: orestes at June 9, 2009 11:05 AM

« Bob Shiller: 'Decline May Well Continue for Some Time' First Closings Recorded at the Argyle »

June 8, 2009

Dose of Reality for Trust Fund Kids

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