Minnesota Money Mistakes
Pretty good article in the WSJ today about subprime in rural Minnesota.
Some scary stories, like this one:
Robert Sundberg first refinanced his two-bedroom home here in 1999, when he had just $2,000 remaining on his mortgage. "I wish I had never done it," the retired manufacturing worker says. "I just went and refinanced too much."
Mr. Sundberg refinanced his home twice since then, once to pay medical bills and then two years ago to pay off car loans. The Sundbergs purchased their home for $24,000 in 1987. They owe $98,000 on the property, which is scheduled for a foreclosure auction on Thursday.
Here's my question for ya: How much of the last decade's consumer spending growth is simply this kind of reckless over-leveraging? And how much of that is going to come back?
Where's the baseline for your companies going forward, and are you paying the right price now?