What makes Californians idiots?
by
Certainly
07/26/2007, 7:00 PM #
Actually, Californians are not idiots. But they are known for their enthusiasm and their optimism.
For us Midwesterners, we find it charming, but we're aware that winter comes some time after summer.
But I must say, after owning west coast real estate for 17 years, and having it appreciate to the point where my home equity exceeds the value of my retirement accounts - and yes, I've been saving the proverbial 15% for those 17 years, I really do understand both the optimism that is standard in California, as well as the eccentricities, excesses and foolishness that comes with it. You can have a great life and be rich, just by being there.
So many people have gotten rich by doing nothing more than owning 2-3 rental properties, or by the accident of having Grandpa leave you his tiny 20 acre orange grove in Irvine or lettuce farm outside of Sacramento, that it's like the laws of gravity - and economics - don't apply. So if there are the occasional massive lapses in judgment, well, what can you expect? There are many smart people who have prospered in California due to their great judgment and courage, but there are a far greater number that have just put all their chips on black (real estate appreciation) and just repeated the process endlessly, that they think they are geniuses. Then they move on to a game that isn't fixed for them - like subprime lending in the Northeast - and well, nature selects.....
