Report: Bernanke's own home down 260K in value

Say it isn't so: The Fed chairman, rapidly losing home equity in the housing bust?

Bloomberg News reports Fed Chairman Ben Bernanke's Capitol Hill home is slipping in value and may soon be worth less than he paid for it. An economist quoted by Bloomberg estimates Bernanke's house has lost $260,000 in value.

"Bernanke [pictured] lives in Washington's Capitol Hill area in a four- bedroom, 2,600-square-foot house he bought new in May 2004 for $839,000. Almost four years later, it may not be worth any more, according to real estate records and local agents.                  

More: "'Even though he's the Fed chairman, he's going to get hit -- but I think lot of people will in Washington,' said William Wheaton, an economist at the Massachusetts Institute of Technology. The value of Bernanke's home 'probably went up to $1.1 million and it's probably back down to $840,000,' because prices in Washington just a couple years ago 'got out of control,' Wheaton said."

Comments? Thoughts? E-mail story tips to peter.viles@latimes.com.
Hat tip: Michael Snyder
Photo Credit: Bloomberg News

Comments

[DC Resident]

What a stupid article. You quote an economist and some guy from MIT to argue that Bernanke's home has lost value? How about looking at the local MRIS databases? Or asking local real estate agents what similar houses have sold for? What the heck does an MIT economist know about home sales and values in a particular neighborhood in Washington DC?

[Pedro]

Do I sense a little cynicism regarding poor Ben. Typical, let's hate the rich guy even if he has earned it the old fashioned way....why, he should give it to some poor wretch who was born into poverty.

[Pete]

Why is THIS news? SO WHAT?!

Ben Bernanke is no more immune to what's going on than anybody else.

I guess the point of the story is for some dunderhead to feel empowered and happy that someone in his stature "got it coming to him!!"

Weak minded bastards.

[Bob Graham Las Vegas]

I hope no one is offended when I say I a not going to shed a tear for Bernanke's loss regarding his home value . What did the minus 260,000 do , make it worth only two or three million ? A house bought while he was on salary with the feds and their banking cartel . I cannot find even empathy for anyone who has been a party to the screwin the fed has given the citizens of the USA . I do not capitalize fed for a very good reason , you are only supposed to capitalize formal names . There is nothing formal about the fed in my eyes .

[Jay]

That's interesting. As a Washingtonian, I can attest to two things:

Prices are a bit out of control, but the funny thing is that valuations have been fluctuating around here very unevenly. There are some properties, which are in fact in less attractive areas, that are on the market for only negligibly lower prices than they would have been before the bubble burst. Maybe they will be there for a long time.

[Cal]

Someday, 10 years from now, 60 minutes will break the story that this massive cutting of interest rates and dumping of billions into the economy was just an effort by Bernanke to save his own home from foreclosure because he pulled out all the equity with a subprime refinance.

[Tim K.]

Actually, this explains a LOT.

Ben bought his home near the market peak of 2004. Clearly, if you think it's a good decision and a fair price to do that back then you'd have this incredible internal psychological pressure to believe that prices will not drop below that level.

I don't doubt that Ben makes sufficient money so I would be very surprised if he is actually under significant pressure to sell his place. I would also be surprised if he got funky financing.

But it's amazing just how tough it is to admit that your purchase is not what it once was. I'll bet there is some unconscious pressure in his mind to want to believe all of the information that favors keeping housing prices higher as "normal".

[Ed]

This is beyond irony and an obvious conflict of interest in what he's doing. What's next, we discover he owns 1000 ounces of gold and 10,000 futures contracts on oil?

[Anoymous]

Can't help but think of the Traffic song- Low Spark of the High Heeled Boys... seems to fit the general feeling regarding Wall Street financiers right now...

The percentage you're paying is too high-priced
While you're living beyond all your means
And the man in the suit has just bought a new car
From the profit he's made on your dreams
But today you just read that the man was shot dead
By a gun that didn't make any noise
But it wasn't the bullet that laid him to rest
Was the low spark of high-heeled boys

[Dr. John Ritter]

The bottom line is that he paid $839,000 and now it's "probably "worth $840,000. Where is the news in this?

[RuthD.]

>>>>>>>>>>>>>BooHoo!!!>>>>>>>>>>>>>>

[Sam]

At least this make him sympathetic to the homeowners who lost to the credit debacle generated by the subprime scam. He would feel their pain, a la Clinton' double speak. The one responsible for this financial melt down is his predeccor Green Span, who was chairman of FRB, and was responsible for the lack of regulations in the finanancial markets, and allowed the easy credit policies to be run a mock of sound economic principles. He is now working in HEDGE FUND, where hs is rwarded handomsely for his incompentence. That is the way the system works, the crocks and wrong doers in Wall Street and big business got rewarded for their mestakes, while the the taxpayers end up holding the bag, after these financial investmentbanks are rescued by the FRB.

[edward]

FYI -- You don't buy houses on Capitol Hill new. It is an historic district of federal style houses a few blocks from the U.S. Capitol and behind the Supreme Court.

[erinkeenan]

OMG. this story is so unbelievably awesome i don't even know where to start. of course i wish this were greenspan this was happening to. but wow, great story.

[GuineaPigZed]

I laughed so hard, I peed.
You've got to be kidding! If he can't make money on his house, how can I ?
He's in charge of what?
The thought, conflict of interest, come to mind.
Does he have a mortgage?
OMG, the emperor wears no clothes!
If he could lend money to JP Morgan, to steady Bernstein, why not guarantee Bernstein?
A secret fire sale, on the weekend.
Should the USA now be the owner of Bernstein bank?
I am trying to buy a house now. ( Yes I am crazy. )
Why does the bank act more like a loan shark?
When the Fed rate goes down, I expect mortgage rates to go down. I'll buy when they do fall.
Right now. today, I won't sign for more than 5 %.
If housing is really a government priority, why do we need the banks to suck us dry?

[Head Pig]

Great post! I would be real curious to see if he owns the home outright or if he has a mortgage on it.......

[jb]

Bernanke (aka "Kristen" by bankers and wall street) will have no problem paying it off with hard work (note his kneepads)

[Jason]

Aaaawwww..... another coaster got bitten in the false housing gold rush? People on the coasts (and in some sections of middle america, but not all) have been stupidly over inflating their markets for years, sometimes at asinine levels. Yet everyone is surprised when the rug is pulled out from under them? Oh please.

It's funny that house values in my area are still increasing (albeit slower) even after the bubble burst. Of course, we've had steady growth of about 3-4% for years, so slowing down to 1% for a few years isn't going to be a kill.

[lc]

A "four- bedroom, 2,600-square-foot house" for $1.1 million is a sign of "out of control" home prices? I need to get out of L.A. more often.

[desmo]

I think he will just mail in his keys.

[Mickey]

Well, everyone is experiencing this. This isn't really news.

[Jack]

Bob-

Learn to read.

"The value of Bernanke's home 'probably went up to $1.1 million and it's probably back down to $840,000"

[Matt]

Slow news day? Moron reporter on the beat with nothing better to do?
Gee, I would have thought that because he was the Fed Chairman he'd have his own unique housing and stock market. Who would have suspected the economy impacts him like the rest of us!! What a waste of newsprint.

[Publius]

What's all this about conflict of interest? He's not allowed to buy a friggin house because he runs the Fed? Get a grip.

[Rick]

Any of you idiots that feel sorry for this guy ought to have your heads examined! He is a crook along with Greenspan. A concocted housing bubble that burst that cost investors BILLIONS while the CEOs lie along with the Reserve Bank heads and I read a sob story about one of the manufacturers of America's financial destruction taking a housing value hit.... PATHETIC JOURNALISM !!! This guy is a crook and belongs in prison along with his J.P. Morgan buddies who bilked investors and employees out of millions & millions of dollars on a Sunday evening just last week. WAKE UP AMERICA !!!