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

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….

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Posted in * Economics, Politics, Corporations/Corporate Life, Credit Markets, Economy, Housing/Real Estate Market, The Banking System/Sector, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, The U.S. Government

One comment on “Freddie Mac Bets Billions Against the very homeowners it is supposed to help

  1. jordemjerusalem says:

    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.