Freddie Mac, one of the two taxpayer-owned mortgage calamities, has tossed multi-billion-dollar bets that reap a generous bounty if homeowners remain shackled in costly mortgages with interest rates well above current rates, according to an analysis by NPR and Propublica.
Ah yes, the beauty of government-sponsored enterprises:
Not only do the investments appear to be at odds with Freddie’s public mandate, they increase the size of Freddie’s investment portfolio at a time when the Freddie, under the terms of a 2008 bailout agreement, is supposed to be reducing it. Both Freddie Mac and Fannie Mae were bailed out by U.S. taxpayers in 2008 and are now owned by the public.
I think it’s time to dismantle these “privatized profits, socialized losses” enterprises that played a big hand in the housing crisis. Actually, it was time a long time ago.