freddie mac

John and Freddie

Unless you live in the USA and have taken out a substantial loan, you have probably never heard the name Freddie Mac.

Freddie Mac’s History (Condensed)

Created in 1970, the Federal Home Loan Mortgage Corporation (FHLMC) known as “Freddie Mac” was engineered to expand the market for mortgages.

The Housing Collapse in Three Sentences

In 07, Freddie Mac was found to have a significant role in creating a market where houses sold for much more than they were worth and selling houses t o people who could not afford them, given their assets and credit. (The reason why they were doing this is fairly complex, but essentially boils down to the oldest reason in the book: Money). Needless to say, people were displeased. It paid a record fine for this (still peanuts to the company) and people were fired or resigned.

Why am I telling you this?

Meet John Koskinen

In December 2013, John Koskinen was sworn in as IRS Commissioner by President Obama. (Yes, he would be the fellow who said that the IRS doesn’t have anything to apologize for in losing the Lois Lerner emails). Surprise – he was also the fellow over Freddie Mac. He’s given large donations to Democrats (none to Republicans). I’m sure that had nothing to do with his being given a government post, right? Right? Riiiiiighhht.