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The Mansion: A Subprime Parable

When Michael Lewis and his family move into a house they can't afford, he gets a taste of the new American nightmare.

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Michael Lewis with family in front of mansion
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I was looking to return to New Orleans, where I’d grown up, to write a book. The move would uproot my wife and three children from California, and I felt a little bad about that. They needed a place to live, but places to live in New Orleans are hard to find. Ever since Hurricane Katrina, the real estate market there has been in turmoil. ­Owners want to sell, buyers want to rent, and the result is a forest of for sale signs and an army of workers commuting from great distances.

At the bottom of every real estate ad I saw was the name of the same agent. One woman ruled the market, it seemed, and her name was Eleanor Farnsworth. I called her and threw myself on her mercy. She thought my problem over and then said, “I only know of one place that would work for you.” She’d suggested it to Brad Pitt and Angelina Jolie, she said, before selling them their more modest place in the French Quarter.

That shouldn’t have been a selling point; it should have been a warning. I should have asked the price. Instead, I asked the address.

As soon as I saw it, I knew it—the mansion. The most conspicuously grand house in New Orleans. As a child, I’d ridden my bike past it 2,000 times and always felt a tiny bit unnerved. It wasn’t just a mansion; it seemed like the biggest mansion on the street with all the mansions, St. Charles Avenue, an object of fascination for the tourists on the clanging streetcars. But it was hard to imagine a human being standing beside it, much less living inside it, and as far as I could tell, none ever did. There was never any sign of life around it; it was just this awesome, silent pile of pale stone. The Frick Museum, but closed.

Inside, it was even more awesome than outside. It was as if the architect had set out to show just how much space he could persuade a rich man to waste. The entryway was a kind of ballroom, which gave way to a curved staircase, a replica of one in the Palace of Versailles. The living room wasn’t a kind of ballroom; it was a ballroom, with $80,000 worth of gold on the ceiling. The bedrooms were the size of giant living rooms. The changing rooms and closets and bathrooms were the size of bedrooms. There were two of everything that the rest of the world has one of: two dining rooms, two full kitchens, two half kitchens. Ten bathrooms and seven bedrooms.

I didn’t ask the price—I was renting—so I didn’t know that the last time it changed hands it had sold for close to $7 million, and was now valued at $10 million. I imagined how it would feel to live in such a place. What it wouldn’t feel like, clearly, was anything close to being in the other houses in which I’d lived.

Upper middle class: That’s how I’ve always thought of myself. Upper middle class is the class into which I was born, the class to which I was always told I belonged, and the class with which, until this moment, I’d never had a problem. Upper middle class is a sneaky designation, however. It’s a way of saying “I’m well-off” without having to say “I’m rich,” even if, by most standards, you are. Upper-middle-classness has allowed me to feel like I’m not only competing in the same financial league as most Americans—I’m winning! Playing in the middle class, I have enjoyed huge success.

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The era that defined Wall Street is finally, officially over. Michael Lewis, who chronicled its excess in Liar’s Poker, returns to his old haunt to figure out what went wrong. Read More