Uh oh ! Usually I'm alone in my paranoid delusions. Stop agreeing with me, its freaking me out.
'Fannie and Freddie Were Lenders': U.S. Real Estate Bubble Nears Its End
Freddie Mac, the government-sponsored mortgage financier, said net income rose 21% in the second quarter. But the company's retained portfolio of home loans contracted, and the company said future portfolio growth will be slower than expected.
Freddie Mac said net income was $1.11 billion, or $1.50 a share, compared with $914 million, or $1.24 a share, a year ago.
Those results included the effects of Financial Accounting Standard 133, or FAS 133, an accounting rule that took effect last year that requires companies to record changes in the market value of their derivatives each quarter. Freddie Mac uses derivatives to hedge some risks associated with owning home loans. Freddie Mac has argued that results including FAS 133 don't accurately portray its true financial position, in part because the rule doesn't require the company to record changes in the market value of some assets. Excluding FAS 133, Freddie Mac would have earned $968 million, or $1.30 a share, up 26% from $769 million, or $1.03 a share, a year earlier