Freddie Mac lost $4.1 billion in the third quarter after losing $6 billion in the second quarter. The losses included dividend payment on the senior preferred stock owned by the United States Treasury Department. Charles Haldeman, the CEO of Freddie Mac, stated that the continuing loss is because the housing market is still relatively fragile. Other factors that may have been behind the losses include the high unemployment rate, slow economic growth, and foreclosure uncertainties.
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Freddie Mac, the second largest provider of residential mortgage funding, is just an example of how the entire economy could suffer if the real estate market continues to be sluggish. The consumers of the United States need incentives, discounts, and reassurance to help stimulate the housing market and the economy. And, that is why the Federal Reserve has agreed to buy an additional $600 billion in treasury securities.
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