Freddie Mac CEO Quits

After only six months of "conservatorship" the Chief Executive of the huge US mortgage lender has had enough. The CNN report of the resignation is linked here. As this blog has frequently pointed out the seeds of the present Crash may be partly found in the creation of the federally subsidised mortgage lenders for low income US families, known as Fannie Mae and Freddie Mac, which served (together with the industrialisation required to mount WWII) to drag the western world out of the Great Depression. The loans made by these organisations were never properly carried on US Government books and the situation was further compounded when greater quantities of such lending were undertaken in recent years in what has been called the sub-prime crisis. We are therefore trying to grapple with the results of decades of irresponsible lending, will the next CEO last any longer?