Down goes Freddie, again

Via WaPo:

The government is expected to inject $14 billion into Freddie Mac, the mortgage finance company under federal control, after it reported today that it lost $25 billion from July through September.

The losses were due to substantial charges the company took on the falling value of mortgage securities and growing number of people who fell behind or defaulted on their mortgages. The company more than doubled the amount of money it reserves to cover future losses. In addition, it wrote down the value of tax credits it was unlikely to use.

The numbers are astounding. The company's losses, when combined with those since the housing downturn started, eviscerate nearly all the company's earnings over the past decade.

Looks like all those scary number's we've all been seeing are the thin end of the wedge.