As we all know from continuous weeks of This Week in Financial Blunders, people can ruin their spending habits in any which way. Big, small, noticeable, discreet, funny or tragic, news of people poorly managing their money can be delivered in countless ways. Take this week’s three very different financial blunders, for example.
Path Out By the Sea
Having a place in the Hamptons is such an overstated sign of wealth that it’s almost clichéd. However, two financiers took this notion to a whole new level when they entered a bidding war for a one foot- wide, 1,885 foot-long sliver of land at an auction. $120,000 was the closing offer on a neglected pathway to the beach in the Hamptons. Though neither participant commented, the starting bid was $1,500, and Marc Helie was the proud winner after 34 bids and counterbids. The long line of land is in Napeague, East Hampton; it’s believed that the land was fought over because it would prevent certain neighbors from crossing property to reach the beach.
AT&T remains in some hot water after a tweet that was instantly deemed inappropriate. On September 11, the company tweeted a picture of a hand holding a smart phone with the image on its screen showing the Tribute in Light memorial. The caption tweeted with it read “Never Forget.” Offense was presumably not intended, but many Twitter users were upset. Many accused the phone provider of peddling a product through a thinly veiled memorial, and the image was taken down within an hour.
In a financial blunder that’ll make you want to yell “Aw, shut up, Norway,” the country of Norway is in trouble because its economy has so much money they’re unsure of what to do with it. Since the late ‘90s, Norway has been putting a ton of money from oil revenues in a fund that’s meant to keep their welfare system going, and this fund is invested outside of the country in stocks, bonds and real estate to keep the country’s economy stable. Fast forward to now–that fund has become the biggest sovereign wealth fund in the world at 570 billion euros ($750 billion USD). The problem now comes from how to spend it: Spending the money too fast or improperly can hurt the economy in the long run, and to make things more complicated, Norway is on the cusp of a presidential election where the incumbent is sure to lose. Where this money will go, and who will dictate the spending is up in the air.
That’s all we have for this week. If we missed a story, please comment below.