With Congress forcing swollen, money-losing mortgage finance giants Fannie Mae and Freddie Mac to shrink, private real estate investment trusts led by Mike Farrell's Annaly Capital Management and ex-Freddie Mac officer Gary Kain's American Capital Agency Corp. have been buying up their mortgage bonds and profiting handsomely.  
Exploiting low interest rates, they're flushing profits to investors instead of saving for a rainy day, and they're paying top executives millions of dollars - more than Wall Street bankers, writes Jody Shenn for Bloomberg here. 

Llenrock Capital's Eric Hawthorn, writing at CRE News, worries this will feed an Occupy-style backlash against real estate.