WASHINGTON — Freddie Mac, the second-largest provider of U.S. mortgage money, has posted its second-largest quarterly profit in its company’s history. This is not encouraging news or something positive for American homeowners and consumers.
According to an article by Reuter’s Martha Chadbourn, this rise in profit came due to rising home prices, falling mortgage delinquencies and an increasingly growing refinance activity among homeowners. The federal-owned company had been bailed out after the 2008 economic and housing-market induced collapse, much to the disgust of Americans.
In the first quarter of the year, Freddie Mac reported a net income of $4.6 billion and was the agency’s sixth straight quarter of reported profits.
The news of their success will rile Americans as their wallets are being emptied by a weak and tepid Obama economy. As AIM has reported, low GDP growth could dangerously go back to recession levels, in addition to rising payroll taxes and an overall weak economy.
Who is to blame? A term coined by conservatives, “Obamanomics”, or the Obama-led economy.