Posted by: Michael Mandel on August 14
An article in today’s WSJ made me laugh. They were trying to show that “Home Buyers With Good Credit Confront Increased Scrutiny And Fewer Choices.”
Their main example was a 70-year old woman in Marietta Ga who could not refinance the million dollar mortgage on her home, so she
“is working 80 hours a week as a technical writer to make ends meet.”
But we don’t find out until much later in the story that:
Ms. Van Cleave concedes she took a risk, borrowing close to the appraised value of her home two years ago — at the market’s peak — to help fund a start-up company that sells a patented fishing-rod holder. She opted for a two-year ARM, with a piggyback mortgage at nearly 12%, and planned to refinance.
But the start-up hasn’t taken off….
Oh, I see. At the age of 68 she borrowed to the max on her home to fund a startup. Fishing rods. And we are supposed to feel sympathy. The mind reels.
Michael Mandel, BW's award-winning chief economist, provides his unique perspective on the hot economic issues of the day. From globalization to the future of work to the ups and downs of the financial markets, Mandel-named 2006 economic journalist of the year by the World Leadership Forum-offers cutting edge analysis and commentary.