Stimulus

The U.S. housing market is harboring the potential for unprecedented economic stimulus that wouldn’t require any federal spending, according to Meredith Whitney, the one-time “Oracle of Wall Street” who predicted the Great Financial Crisis

Such borrowing can be used for things like vacations, weddings, new cars, investments, medical bills, paying down debt, or starting a business. In other words, it’s more money that could power the economy.

Freddie Mac is best known for its role in buying first-time mortgages, pooling them together, and selling them to investors as mortgage-backed securities. This allows lenders to get those mortgages off their balance sheets, freeing up liquidity for more loans.

Meredith Whitney, founder and chief executive officer of Meredith Whitney Advisory Group.