Accrued Interest has the straight-talk on the balance sheet of Fannie Mae’s brother Freddie. The highlight of the Q & A is this loaded question…
Q: Freddie Mac’s senior debt rating is still AAA, which is about as much bullshit as Ambac. How can these guys keep losing money quarter after quarter and retain that rating?
So spot on I didn’t even bother reading the answer – I was overcome with the amusement of “truthiness.”
(h/t to Calculated Risk)
UPDATE: Jonathan Weil has a diagnosis for Freddie Mac…temporary insanity.
UPDATE 2: More on ratings here.