Saturday, November 7, 2009

Freddie Mac (still) Hemorrhaging Money

Freddie Mac lost $6.8 billion in the third quarter of this fiscal year. They consider themselves in decent shape because, for the second straight quarter, they've lost billions of dollars but not so many billions of dollars that they needed a "federal cash infusion" (read: stolen tax dollars). They've already received $51 billion since September 2008. Fannie Mae asked for another $15 billion a couple of days ago. Both of these entities own or guarantee half of the mortgages in this country.

Sometimes I feel like Francis Dolarhyde: "Do you see? DO YOU SEE?!" Are people really that blind to the crucial intersection of morality and economics? Tragically (though not surprisingly), all evidence points to "yes".

Brace yourselves, kids. It is still early. And it will get uglier.


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