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December 22, 2014

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J. Patrick Coolican:

Queen of Versailles’ serves as an indictment of years of false prosperity

Image

Tom Donoghue/www.donoghuephotography.com

Planet Hollywood’s Westgate Tower.

Planet Hollywood Towers by Westgate

A look at the new Planet Hollywood Towers by Westgate. Launch slideshow »
J. Patrick Coolican

J. Patrick Coolican

Planet Hollywood's Westgate Tower

Planet Hollywood's Westgate Tower. Launch slideshow »

Along with a lot of misery, the 2008 financial crisis and the resulting Great Recession have produced excellent films, both dramatic and documentary. In the former category, “Margin Call” took us inside a failing Wall Street firm that, though fictionalized, was clearly based on the events of 2008, exposing us to the anguish and ignorance of the collapse. “Inside Job” was an investigative documentary into the causes of the crisis.

But the best film yet may be “Queen of Versailles,” a documentary made by the celebrated photographer Lauren Greenfield about a family building the largest house in America before it all collapses — figuratively, if not quite literally — under the weight of folly. Real estate speculators and subprime lenders and borrowers in Southern Nevada played a more-than-minor role in causing the financial crisis, so it’s fitting that a significant part of the film takes place in Las Vegas, specifically in the troubled Westgate time share project adjacent to Planet Hollywood. The film is currently playing at the Suncoast.

The film begins in 2007, as David and Jackie Siegel have begun construction on an Orlando house said to be modeled after Versailles, which ordinarily might serve as a metaphor for waste and arrogance, but not so in this case. They’ve made hundreds of millions in the time share business, and the Westgate Tower in Las Vegas is a crown jewel.

As much as we laugh a bit at their reality show-style hijinks — Jackie is at an airport Hertz counter and seems baffled that she won’t have her own driver — it’s hard not to like them. They come from modest upbringings, and David is mostly sheepish about his success while Jackie is unpretentious and a loving, if not entirely attentive, mother of seven children.

David concedes that his middle-class time share customers rely on financing, which means he relies on cheap and easy credit from the banks to keep his business growing and thriving.

Once the credit markets freeze in the fall of 2008, the story takes a sudden turn because Westgate customers can no longer get financing. Suddenly, we’re in the Tom Wolfe novel, “Man in Full,” when the rich commercial developer who is overextended is getting a “workout” from the banks, squeezing him for everything he worked a lifetime to build.

David Siegel fights the banks to keep them from seizing the Westgate. Construction on the faux Versailles stops. Its half-finished skeleton, familiar to anyone who drives around here and sees similarly unfinished buildings, is a crass symbol of economic collapse. The kids are sent to public schools. The huge household staff is trimmed. If we can’t exactly feel sorry for them, we can see ourselves in them, largely because of the arresting and largely sympathetic portrait painted by Greenfield. (David apparently disagrees with that assessment — he’s suing Greenfield.)

Still, intentionally or not, the movie for me serves as an indictment of those years of false prosperity, when everyone had a house or a time share or a time share building he couldn’t afford, when the financing was cheap and easy, and when all was too good to be true.

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  1. "Real estate speculators and subprime lenders and borrowers in Southern Nevada played a more-than-minor role in causing the financial crisis, so it's fitting that a significant part of the film takes place in Las Vegas"

    Not enough people went to jail for all the fraud that occurred back then.

  2. This is a compelling documentary that you are right to recommend. As a postscript, David Siegel (through Westgate) is now suing Lauren Greenfield because he feels the movie portrays his company in a negative light. Most telling for me was the scene in which Mr. Siegel's son describes Westgate's customers, potential time share buyers, as "mooches," whose greed (for "free" offers to sit through a presentation) is an Achilles heel his sales force will exploit to get them to purchase something they cannot afford.

  3. All these documentaries only tell part of the truth.

    The facts are this was a false economy, BUT THE RICH PEOPLE STILL GOT TO KEEP THE MONEY THEY Exploited from the economy.

    The BAD DEBT is now the PUBLIC DEBT and the 99% are stuck with this bill.

    The rich, greedy and powerful will never pay the taxes to pay for the profits from the greed.

    Just because these documentaries tell how the 99% were ripped off, they do nothing to get new laws passes to stop this extortion in the future.

    In effect, we have learned nothing that previous history of the great depression told us.

  4. No wonder I hate time shares.

  5. This sort of thing happens whenever we don't have honorable and intelligent bureaucrats regulating commerce. (Because no matter what, SOME unethical people will be in business, every kind of business where they can find an angle.) Today we have endless regulations but no oversight to speak of. When one must wait three years or more after a federal agency does it's thing to get the resolution promised.... And then there are the cases where no resolution is promised.

  6. What, exactly, is "false prosperity"? If the housing values would have held in the short term, would it then be "real prosperity"? If those who bought in 2007 hold until 2020 and make a nice profit, will that be "real"?

  7. I have witnesses. 20 years ago I told people that this economy could not continue, particularly in Vegas. People with entry-level and "menial" jobs were buying mini-mansions, tricked out trucks / SUVs, charging those credit cards to the max. When there is no way they can pay for it, guess who gets to take over for them? The non-indigent public and taxpayers. Understanding that not every person in an entry-level job does good, does not move up, does NOT keep their job and in Vegas many more (percentage wise) lose it, what were the politicians doing? The bankers (local bankers)? Investors? Casino tycoons were moving offshore so they had it figured out or at least understood their future markets were not here. Now that we've fallen far enough, future markets might be here but those are the new normal markets for the new normal economy. We all must DOWN-SIZE, particularly the PUBLIC SECTOR.