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Friday, April 26, 2013

Fannie Mae and Freddie Mac Turn Record Profits

privatized profits and socialized losses--

Fannie Mae and Freddie Mac Turn Record Profits | New Republic: "The new enticements to coax that private capital back into the market look even less advantageous to investors. As a result, we have this strange limbo, with the status quo in place to prop up the housing market. At the moment, Fannie and Freddie’s profitability means a windfall for taxpayers, as the companies must pay the bulk of their profits to the Treasury. But that won’t hold forever. And this anxiety about a government-sponsored housing market could lead to big banks getting their wish—a market with privatized profits and socialized losses."







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