''Having more debt, in the US, used to mean better creditworthiness."
"Lost faith in the economy? Lost your job? Lost so much in the stock market that you will still have to continue to work? Maybe a bit to blame for this misery? No worries, the solution is near. For years drinking has been the cure for more (or less) successful fellow country folks, actors, writers and others."
This is how the last monthly happy hour in New York was announced on the website of NLBorrels (
nlborrels.com), a Dutch worldwide expat network. Members were invited to drown their sorrows during the happy hour. Beer from Groenlo in the Netherlands....for 2 dollars each.
Sander is a consultant in the hotel industry and doesn't need hard liquor. He is pretty stoic about the crisis:
"I can't change anything anyway. When the last bubble in 2001 burst, I lost so much that there is not much to lose right now. I had stock options with a combined value of millions one day; two days later they were not much more valuable than toilet paper. It all makes sense. When nobody wants it anymore, the value is zero, even if it was bought for a lot. Tough lesson for an engineer from Delft."
Depressing
The effects of the credit crisis are becoming more visible. Jaap Hooiveld works for ABN Amro Bank in the heart of Manhattan, close to Wall Street. The atmosphere is depressing:
"People are scared and angry. They are afraid of losing their jobs, their pensions and their homes. Americans have lost certain basics because of the crisis. There is a lot of anger over how this could have happened."
According to Hooiveld, the cost of living has increased as well. Fewer or no bonuses will be paid this year, resulting in significant loss of income for many New Yorkers. Less money to pay, for example, their mortgages.
Foreclosures
Realtor Hugo van Dijk noticed the looming crisis months ago.
"Unemployment, lay-offs, small retail stores empty and retailers with signs: 'Going out of business'. For me, that was a sign of things to come. The keen observer could tell that things were not going well back then, despite the tough reassuring talk by the US President."
The Real Estate industry, according to Van Dijk has been hit hard by the credit crisis.
"Twenty five percent of all buyers of apartments in Manhattan work on Wall street and in the financial industry. Some of them are losing their jobs. The number of transactions is diminishing and buyers are having difficulty qualifying for mortgages. Some homeowners are forced to sell their homes. Throughout the five boroughs we see an increase in 'foreclosures', repossession of Real Property by lenders and banks, because people are defaulting on their mortgages."
Because Realtor Van Dijk anticipated these changes the damage to his business is limited:
"I have created relationships and connections with investors from Europe, who can use the stronger Euro to buy Real Property at a discount."
Dutch frugal ways?
Has the traditional Dutch frugal upbringing been beneficial in these times? Realtor Hugo van Dijk:
"Absolutely! My Dutch background has taught me to live within my means and I have been very aware of the seasonal ups and downs of my industry. I don't have to make big adjustments to my expenditures. An added advantage in New York is that you don't really need a car. That saves a lot of money."
Jaap Hooiveld adds, "We put some savings aside in the good years and I am glad we did!"
No credit history
Sander knows his spending patterns are different from the average American.
"I have always been more careful with what I spend than Americans around me. At the same time I have adjusted my consumptive behavior to the American reality. Most importantly because 'credit', the amount of money you can borrow, is based on financial behavior, this determines your 'credit history'.
The strange thing is this: if you have large amounts of debt, and pay it off, you are considered more creditworthy. If you never borrow money or always pay off 100 % of your credit card balances, you won't build up a credit history. So, in all reality you get punished for not having any debt.''
Gert Jan Wijma
Radio Netherlands
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Dutch expats in New York are directly affected by the financial crisis. Their Dutch frugal ways don't always work
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