Why Mortgage Giant Freddie Mac Is Getting a Bailout: Costly Obama Policies and Giveaways

Earlier, I wrote about mortgage giant Freddie Mac’s demand for $1.8 billion more in bailouts. Why does it still need more bailout money, when it and its sister company, Fannie Mae, have already received more than $148 billion from taxpayers, and will likely end up receiving over $400 billion?  The short answer is that the Obama administration forced Freddie Mac to run up tens of billions of dollars in losses to bail out mortgage borrowers, including irresponsible high-income households whose payments are getting reduced to a ridiculously low level. In conduct reminiscent of Enron, officials then tried to prevent Freddie from disclosing to the public and the SEC how Obama’s mortgage bailout was forcing it to lose even more money, reported The Washington Post.  (As the red ink piled up, Freddie Mac’s former CFO committed suicide in his basement.  Freddie Mac’s current management is all too happy to go along with the money-wasting policies of the Obama administration, which has rewarded their complicity by showering their executives with millions of dollars in pay.  The current Freddie Mac CFO received $5.5 million, while managers of Freddie and its sister company, Fannie Mae, got $42 million.)  The bailouts Freddie Mac received were on top of the billions in hidden taxpayer subsidies it received over the years thanks to its status as a quasi-governmental enterprise.