fhwang.net

Time Geithner can't sell his own house for a price he'd like

I wonder if this might be Geithner’s problem in a nutshell:

U.S. Treasury Secretary Timothy Geithner is renting his home in Westchester County, New York, for $7,500 a month after failing to find a buyer …

The inventory of similar homes for sale in the area may have affected the property’s prospects, said Debbie Meiliken, a broker at Keller Williams Realty New York.

“There was a lot of competition,” Meiliken said. “Sometimes people will put the house for rent if they’re not prepared to sell it and take a loss.”

Does Geithner think his own house price has been artificially depressed by a temporary liquidity crisis? I wonder if he realizes that asset prices will have to come down eventually and someone, somewhere, will have to bear that loss.

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Tagged: economics

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