Sub Prime

My family took a late-morning, Mothers' Day bike ride with friends in a nearby gated community. Our route passed six golf holes that are part of their two private courses. We saw just two golfers out on a gloriously warm, calm Sunday morning. Only one person was hitting balls on the driving range. I was going to joke about the club members serious devotion to their mothers. Was everyone at brunch eating eggs Benedict and drinking mimosas? But, my friend spoke first: the club's golf finances are not sustainable. Some members advocate abandoning one course. Others, including him, want to admit the public.

I hid my indignation. He expected the public -- me -- to bail out the wealthy who had invested badly. The gated paradise is two golf courses, a swimming pool, exercise facilities, tennis courts, a couple of restaurants, and an equestrian barn. But, there aren't enough residents to pay for it all. Only 1000 houses of 2000 planned have been built. Many are vacant. Some are incomplete haunted houses behind sloppy chain link fence. Rutted driveways hold piles of dirt and sand. A local bank web page lists repos for sale. Six are in the gated community. "As is" prices range from $995,000 to 1,595,000. Who knows how many others are under water. The original development company is in receivership. We were on a bicycle tour of a grandiose real estate disaster. And, the aristocracy might just have to let peasants in to play golf. Schmucks like me will maintain the residents' luxury lifestyle.

Let's talk about the obvious. The rich-folk gated community is an amplified version of the poor bastard sub-prime borrowers. Both bought in to a dream that turned bad. The gated rich, however, deny the similarities. They blame the poor. The upper class perpetrated the big fraud and expected only gains. Losses were for little people. Now, suckers themselves, they are angry and indignant. Imagine the treatment given to the paying public should the golf courses be opened to the world. Our money will be welcomed, and that's it. We will be viewed like the tourists who, for a fee, get to tour stately European estates that remain owned and occupied by nearly broke heirs and heiresses. Every unreplaced divot and unrepaired ball mark will be blamed on the Outsiders. Members will whine about slow play.

I want to see the open golf course plan implemented for one reason: to learn how much the members will charge the public. It will be a great way to measure the rich folks' self image. Several nearby Indian tribes have casino and golf course combinations that include wonderful courses priced around $80. The gated guys will, likely, want to go higher. They think they have more to offer. They don't, except for being nearer to town. Golfers won't pay much extra to save fifteen minutes of time on the road.

More as the story develops.