The Crisis Hits Home for Bernanke

The Fed chief may be more concerned about the housing slump than we knew.

By SHARE

Looks as though the housing downturn may have cost Ben Bernanke more than $250,000 in home equity. "Bernanke 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," Bloomberg reports. Despite a likely run-up in value before the housing bubble burst, Bloomberg adds, "almost four years later, it may not be worth any more, according to real estate records and local agents."

From Bloomberg:

"Even though he's the Fed chairman, he's going to get hit—but I think [a] 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.

Full story here.