Monday, August 8, 2011

Fannie Mae and Freddie Mac Get a Downgrade

The two biggest leeches (other than General Electric) on the taxpayer’s purse just received a downgrade by S&P. Fannie Mae and Freddie Mac are completely dependent upon federal government largess. And after the U.S. received their reprimand from the ratings agency, it was appropriate that these two government sponsored entities should receive the same:

In downgrading Fannie Mae, Freddie Mac and several other U.S. government entities, S&P cited their dependence on federal support. Included in the downgrade were the senior issue ratings on debt issued by Fannie and Freddie, the giant mortgage-finance firms.

Of course, the feds stick firmly behind these two discredited dirt bags:

Edward DeMarco, acting director of the companies' regulator, the Federal Housing Finance Agency, said the government's commitment to support the two mortgage giants "remains unaffected by the Standard and Poor's action."

Can you say another housing bubble?

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