Freddie Mac posts $2.5B loss in 4Q

Freddie Mac lost $2.5 billion in fourth quarter of 2007.  Of course, the reward for losing all that money?  Raise the caps on what it can borrow. 

If not for a change the company made in its accounting, Freddie Mac said its fourth-quarter loss would have been much bigger -- $3.7 billion.

When Oftheo lifted the caps, it said that both Freddie's and Fannie's accounting has improved.  Now we know what improvement meant!  Now they know how to turn a $3.7 billion loss into $2.5 billion.  Hey Tan-Man try beating that.

'Today's economy represents one of the most severe housing downturns in American history, and our results reflect that difficult environment,' Freddie Mac's chairman and CEO, Richard Syron, said in a statement. 'If the economy weakens substantially from here -- a possibility for which we need to be prepared as a company -- it will have a further negative effect on homeowners across the country and drive credit costs higher.'

Once again this is from an industry source.  We have been saying the rates might go higher.  And also expect economy and housing to worsen.

http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-23361807.htm