Freddie Mac to Soon Hand Over $1.7 Billion Loss to American Tax Payers

Here's another example of something the Republicans could have cut in their meager $100 billion in budget cuts that shrunk to $61 billion. Why are tax payers still subsidizing Fannie Mae and Freddie Mac? As the Republicans failed to reach their $100 billion in promised spending cuts, this is another program that could have gotten them closer to their goals. Yet, I have heard nothing said about ending these disastrous programs that continue to cost taxpayers.

The AP reports today that Freddie Mac lost $1.7 billion last quarter. (Wanna bet someone is getting a bonus there anyway?) Oh, but you the American taxpayer will soon be bailing them out meaning Freedie Mac didn't lose the money, the American taxpayer lost the money. All in all, Freddie Mac lost nearly $20 billion in 2010. Why are Republicans keeping the life support on this failure? You promised $100 billion in cuts, start cutting? Are you listening Congressman Billy Long, or does your real estate company that I have seen no evidence of you selling benefit too much from these programs?

Freddie Mac is asking for federal aid--a bailout if you will. They are currently asking for $600 million to help get them through. Like I said, this has been transferred to your debt, and the Republicans who went to Washington to put a stop to this don't appear to interested in stopping much these days.

As the federal government prepares to give this money to Freddie, Freddie doesn't paint a picture that gives me hope they are good to pay the money back.

The company said the recovery of the housing market is still fragile.

"As we begin 2011, the housing recovering remains vulnerable to high levels of unemployment, delinquencies and foreclosures," Chief Executive Charles Haldeman said in a statement. "We expect national home prices to decline this year as housing will continue to take some time to recover."

Let me ask you a question. Gas prices are rising and may hit $5 a gallon by Memorial Day weekend. This means energy costs for homes are going to rise too. It also means more of your income will be directed in other directions, which raises the question, how is the housing market going to recover in these tough times with so much uncertainty. Obviously, our federal government doesn't think this way, and they are probably trying to figure out where to send the check right now.