After posting a huge loss Freddie Mac is asking for an additional $10.6 billion from the federal government. This is a strong indicator that the housing sector keeps continuing to be a problem and has not stabilized.
The mortgage base financed company had been taken over by the federal government in September 2008, when an infusion of billions of dollars helped rescue the trouble mortgage lender. With the new request it would bring the total federal bailout funding to $61.3 billion and $136.5 billion to both Freddie Mac and Fannie Mae.
The problem with this request is why wasn’t this part of the financial reform measure now before Congress? How can you reform only parts of it but the one element untouched when the housing sector was the lead impetus that caused the financial meltdown?
It’s time Congress start getting serious about financial reform and stop demonizing sectors that you don’t like but leaving other sectors that you support untouched.
This is why the public has such low opinion of Washington. We get rid of one corrupt party and now we have another corrupt party take its place. One only has to follow the flow of money to both mortgage lenders and you will see why nothing gets done.
No matter what Washington states the bailouts continue! Should we be surprised!
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