Betting against the house

With friends like this, does the Obama administration really need enemies?  News from ProPublica reports that Freddie Mac has in essence, bet against homeowners.

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.

This has all the makings of a self-inflicted wound, and one the Obama administration does not need.

Follow-up stories reveal that the Administration has been telling Freddie to quit. Of course, with the conservatives already convinced that Freddie and sister Fannie spurred the housing collapse, this only provides the confirmation.

 

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