Freddie Mac Holdings

Eugene McQuade is a smart man. Last year, the president and chief operating officer of Freddie Mac declined an offer to replace Richard Syron as chief executive of the mortgage behemoth.

Instead, he became vice chairman and president of Merrill Lynch’s U.S. banks, just before his old company, which, along with Fannie Mae, guarantees or owns around half of the nation’s $12 trillion of mortgage debt, plummeted so theatrically (the stock went from $67.20 to $3.89 in 52 weeks) that the entire American economy has apparently been jeopardized.

It’s unlikely that any of the $12 trillion in mortgage debt comes from Mr.  read more »