Freddie Mac Bets Billions Against the very homeowners it is supposed to help

Posted by Kendall Harmon

Freddie Mac, the taxpayer-owned mortgage giant, has placed multibillion-dollar bets that pay off if homeowners stay trapped in expensive mortgages with interest rates well above current rates.

Freddie began increasing these bets dramatically in late 2010, the same time that the company was making it harder for homeowners to get out of such high-interest mortgages....

Read it all.

Filed under: * Economics, PoliticsEconomyCorporations/Corporate LifeCredit MarketsHousing/Real Estate MarketThe Banking System/SectorThe Credit Freeze Crisis of Fall 2008/The Recession of 2007--The U.S. Government

Posted January 31, 2012 at 6:15 am [Printer Friendly] [Print w/ comments]

1. jordemjerusalem wrote:

The game has been rigged for decades to convince people that they could afford something they could not; and when it crashes the other tax payers would bail it all out. Getting out of this and all the other messes will be daunting.  I am surprised it hasn’t all toppled already.

January 31, 10:41 pm | [comment link]
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