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Freddie Mac loves it some bailouts

November 4, 2010

Freddie Mac posts $4.1B loss for Q3 – Washington Times.

Ahh, Barney Mac.  Oops, little Freudian slip there.  Freddie Mac I meant.  Our mortgage company just can not seem to make any money.  You would think with an unlimited budget and a huge hands-off sign from the government when it comes to regulation this “company” could occasionally post a profit.  Alas, running a business well is beyond the capacity of the government, and the stooges hired to run them.

I am so cynical, there is a silver lining:

The government-controlled mortgage buyer also asked for an additional $100 million in federal aid, substantially less than the $1.8 billion it sought in the second quarter.

That’s sort of like the dentist saying, good news, remember last time you were here I had to take 25 teeth?  Good news, I only have to take 2 out this time.

Let’s add that $100 million to the total bailouts to Freddie and Fannie and we have a nice big number, $259 billion.  Or, as like to say, a quarter of a trillion.  Those are just numbers, lets see what we could buy with that money:

Not that any of my comparisons matter, it’s just fun to see how much money we waste on a for-profit company.

Here is a quote that would make Bernie Madoff proud:

Fannie and Freddie have repaid $14.6 billion as dividends to the Treasury Department.

The small request for aid in the latest quarter was intended to help make up a deficit in Freddie Mac’s net worth, resulting from its third-quarter dividend payment exceeding its income of $1.4 billion.

I am a pretty stupid guy (I did vote for a Republican after all) but let me see if I follow this correctly.  Fannie and Freddie pay $14.6 billion in dividends to the treasury, oops, Freddie’s net worth is down, hey guys, can I have some of that money back….uhh, maybe no one will notice.

Luckily, the government is all over these money pits and has passed Consumer Protection legislation to fix ’em:

Over the next year, lawmakers plan to review the nation’s mortgage-lending system and consider a potential replacement for Fannie Mae and Freddie Mac. The financial overhaul signed by President Obama in July didn’t address that issue, despite protests from Republicans that it was incomplete without a such a plan.

Ohh damn. Seriously?  I read that wrong (not really).

Hey there is some good news at least.  The geniuses in Massachusetts knew the only way to fix this was to ensure the stand-up guy leading the charge for fixing Freddie will be around for another 2 years.  Thanks Mass, I am supposed to believe there was no one in your whole district better than Barney?  You guys suck.

4 Comments leave one →
  1. bunkerville permalink
    November 4, 2010 9:23 am

    The worst is that Bernanke is fudning the QE 2 of our debt. Buying our debt with our own money… the last bullet a read in his “toolkit”, it is described. What a joke. Inflation will become staggering– Gold now at a all time high, energy rising because our dollar is tanking.

    • November 4, 2010 10:12 am

      Yep. I was going to write about the timing of QE2 being right after the elections, but I decided not to venture to far into a realm I know nothing about. To be fair to myself, no one really knows much about the effects of quantitative easing.

  2. JustFacts permalink
    November 4, 2010 10:18 am

    Let’s do a comparison here. Let’s see Freddie Mac – a government-created and controlled for-profit business (wink, wink, nudge, nudge), can’t make a profit and has to be bailed out and needs more money. The US Postal system – a government-created and controlled for-profit monopoly (wink, wink, nudge, nudge), can’t make a profit and has to ask for increased government subsidies, plus increased postage rates. Do we see a pattern here? Can we connect the dots – as they say? What is the common denominator here? It is “GOVERNMENT-created,” for those of you who can’t figure it out because of another government-created monopoly – education.

    What is so hard to figure out? Why do we continue to believe that we need to take our hard-earned money and send it to Washington each payday, just so that we can get part of it back after they have wasted about half of it. Government is NOT the answer, and never has been. Of course, there are things that we actually NEED a central government to do – National Defense, Immigration Control, Courts system – that’s really about it. The rest of it is all stuff that we have allowed them to gain control over through our shirking of responsibility. Why do we want to send our education dollars to Washington so that they can decide how much our local school districts can get back? Shouldn’t we fund the schools that we want in our own locales? Where in the US Constitution does it state that the national government is to fund schools? That is a local/state function.

    Let’s get back to the basics.

    • November 4, 2010 10:59 am

      Like I said before and I will say again – 10th amendment, what the hell is that?

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