This turd will cost the taxpayers hundreds of billions when and if they mark to market one day.
Would you like to own the Countrywide, IndyMac and First Fed junk mortgages sitting on Freddie Mac or Fannie Mae's books today?
And what's Congress' best idea for getting out of this mess? Well it's raise the maximum mortgage limit and let them buy more loans of course!
Oh, dear god, we're so f*cked.
Big loss for Freddie Mac
Freddie Mac (FRE) posted a bigger-than-expected fourth-quarter loss and warned that a weakening economy will lead to higher credit losses in 2008 and 2009. The McLean, Va., mortgage lender lost $2.5 billion, or $3.97 a share, for the quarter ended Dec. 31, compared with a year-ago loss of $401 million, or 73 cents a share. Analysts on Wall Street were looking for a loss of $2.04 a share.
Under Freddie’s old accounting, its fourth-quarter loss would have been $3.7 billion.
Freddie’s promise to return to timely reporting was partly behind Wednesday’s decision by its regulator, the Office of Federal Housing Enterprise Oversight, to lift limits on the mortgage-portfolio holdings of Freddie and its government-sponsored sibling Fannie Mae. The hope is that Fannie and Freddie can ease the housing crunch by making the mortgage market more liquid. But as Thursday’s numbers show, the companies have plenty of problems of their own.