Freddie Mac

Freddie Mac fired it's COO, thus the CEO, CFO, and COO are all being replaced. This will just add fuel to the fire for critics of Freddie Mac and Fannie Mae. Some think that the line of credit they have with the government promotes riskier investments. That concern is multiplied because many people think there is a housing bubble. Freddie and Fannie would definitely suffer if it popped. But, given the tax advantages of owning real estate, middle class owner-occupied housing is often said to in an artificial bubble due to overinvestment. Of course, some say the social benefits are worth it.

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