The Stench Of Freddie Mac Is Back——$18 Billion In Crony Capitalist Thievery

The Stench Of Freddie Mac Is Back——$18 Billion In Crony Capitalist Thievery | David Stockman's Contra Corner:
shington’s capacity to foster crony capitalist larceny and corruption never ceases to amaze. But according to the Bloomberg story below, Wall Street’s shameless thievery from US taxpayers is about to get a whole new definition.
To wit, Freddie Mac is handing three private equity billionaires deeply subsidized debt financing in order to undertake $18 billion in rental apartment deals.
According to no less an authority than Morgan Stanley, the subsidy embedded in this cheap financing amounts to 150 basis points or roughly $150 million per year on the loan amounts in play.
Yet this largesse will serve no discernible public purpose whatsoever.
Indeed, over the 10-year term of these loans the bonanza will amount to billions, but it will not generate a single new unit of housing.
Nor will it provide a single dollar of incremental rent relief to any low or moderate income tenant..."