Has Freddie Found The Bottom Of Its Hole?

What a day! Employment is looking better and Freddie Mac reports a profit. No that is not a typo or bad joke, they actually made some money.

From Reuters:

Freddie Mac reported second-quarter net income of $768 million, compared with a $9.9 billion loss in the first quarter and a $821 million deficit in the period a year ago.

For the first quarter in four, Freddie Mac said it would not need a capital injection from the Treasury to maintain its business of providing credit for U.S. housing. But it said it continues to rely on government money to keep it afloat.

Of course, none of this means that the company is on the road to recovery. It is essentially insolvent and will, absent a gigantic injection of equity, always remain so. It’s just nice to see that they are maybe bottoming out, though it’s hard to imagine a deeper pit than they have fallen to the bottom of.

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