Bloomberg Anywhere Remote Login Bloomberg Terminal Request a Demo

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Businessweek Archives

This Brain Trust Is Really Smarting


Up Front

THIS BRAIN TRUST IS REALLY SMARTING

FOR HOMEOWNERS ANXIOUSLY watching their adjustable-rate mortgages shoot up, take comfort: Many members of the Clinton Administration's economic brain trust share your pain. A BUSINESS WEEK survey reveals that a goodly number of them have adjustable-rate mortgages, including Treasury Secretary Lloyd Bentsen. He chose an ARM late last year just as fixed-rate loans hit their lowest point in 20 years.

Other advisers bearing ARMs: Laura D'Andrea Tyson, head of the Council of Economic Advisers, and CEA member Joseph Stiglitz. Adding insult to injury, Stiglitz's 91-year-old father refinanced his Munster (Ind.) home to a fixed mortgage just when rates bottomed--and needles his son for missing the chance. CEA nominee Martin Neil Baily, who was overwhelmed with work at McKinsey & Co., never got around to refinancing the 9% fixed mortgage on his home in Maryland.

Then there's multimillionaire Robert E. Rubin, the former co-chairman of Goldman, Sachs & Co. who heads the National Economic Council. During New York City's mid-1970s real estate crash, Rubin bought a Manhattan co-op that has since soared in value. He paid cash. MORTGAGES OF THE

CLINTON ADMINISTRATION

ALICIA MUNNELL 15-yr fixed,

Ass't Treasury Sec'y 6.625%

LAURA TYSON ARM

Chairman, CEA

MARTIN NEIL BAILY 30-yr fixed,

CEA nominee 9%

EDITED BY PETER COY & JULIE TILSNER By Dean Foust


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus