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| Subject: Read it and smile!!!! | |
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Author: jw |
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Date Posted: 09:06:45 03/10/08 Mon In reply to: Stephen 's message, "Thanks" on 07:18:38 03/10/08 Mon Looks like our good friends at the carlyle group are in some financial hot water. I checked wikipedia on carlyle group, it is claimed they have 75 billion in assets, liquidation of 16 billion should give dick chaney a pin prick. Send in the arab and chinese clowns! Carlyle Tries to Hold Off Lenders By JANE WARDELL – 2 hours ago LONDON (AP) — Carlyle Capital Corp. Ltd is in talks with creditors to prevent the liquidation of some $16 billion in securities, the listed mortgage-bond fund said Monday. Carlyle Capital shook financial markets last week after missing margin calls from banks on its $21.7 billion portfolio of residential mortgage-backed bonds. It said some $5 billion in securities held as collateral may have already been sold. The fund, an affiliate of the U.S.-based private equity firm Carlyle Group, warned that if it fails to reach an agreement with remaining lenders, all of its securities may be liquidated. "While these talks continue, the company has discussed and requested a standstill agreement whereby its lenders would refrain from foreclosing and liquidating their collateral, and we are awaiting responses," the fund said in a statement. The trouble at Carlyle Capital has raised fears that their assets will flood the market, further depressing prices on fixed-income securities. The securities have dropped sharply in recent weeks as banks pull back on lending to funds and investment vehicles, leading to forced asset sales. Shares in the fund, which trade on Euronext Amsterdam, were suspended Friday. The stock fell nearly 60 percent to $5 Thursday when Carlyle Capital revealed it had failed to meet margin calls with four banks the day before. Shares will not be reactivated until Dutch stock markets watchdog AFM receives more information from Carlyle Capital, said Paul van Dijk, a spokesman for the regulator. On Monday, Carlyle Capital said it had received more than $400 million in margin calls. The company leveraged its $670 million equity 32 times to finance a $21.7 billion portfolio of AAA-rated residential mortgage-backed securities issued by U.S. housing agencies Freddie Mac and Fannie Mae. To do this, it enters into repurchase agreements with banks, in which it posts the mortgage securities as collateral in exchange for cash. If the value of the security held as collateral falls, the lender has the right to ask for more collateral — a "margin call" — to secure the loan. If the borrower does not meet the margin call, the lender may sell the security. "Due to recent turmoil in the market for mortgage-backed securities, the company's lenders have significantly reduced the amount they are willing to lend against the company's portfolio," Carlyle Capital on Monday. The fund is managed by a unit of Washington, D.C.-based Carlyle Group, which is one of the world's largest private-equity firms with $76 billion in assets under management. Initially launched as a private fund in 2006, it was floated on Euronext Amsterdam last July, selling shares at $19 each. Within weeks of the listing, it was forced to tap Carlyle Group for $200 million in emergency funding and sold a $900 million loan portfolio at a loss to help meet margin calls. AP Business Writer Toby Sterling in Amsterdam contributed to this report. >Thank you for taking the time to clarify this for me. >I know you know this stuff. > >Good luck in the future. Something tells me we can all >use a little luck right now. > >> One of the scariest bits of news is that food >>supplies are extremely low now, as your article says, >>wheat supplies are the lowest level in 60 years, and >>there were several billion fewer mouths to feed then, >>also china was not converting from a largely plant >>based diet to mc donnalds cheese burgers. There are >>also other reasons for the run up in all commodities, >>the collapse of the dollar has an exagerated effect on >>commodities prices, along with the lack of decent >>investment opportunities. Because stock markets are >>failing, real estate is failing, and the US government >>is keeping interest rates artificially low, well below >>the rate of inflation, "money" is driving up the cost >>of commodities. Rich people and institutions know >>that people must consume commodities, so just like >>they threw their money at stocks and real estate and >>created bubbles, today they throw their money at >>commodities and create another bubble, they become >>rich and we all suffer. When there was a stock market >>bubble in the 90's, it generally did not hurt the >>average person. The real estate bubble hurt many >>people who needed to buy homes, they were forced to >>buy homes at artificially high prices because instead >>of america building a real economy, greenspan and bush >>perpetuated a real estate bubble to keep the economy >>growing for a few more years. now that the real >>estate bubble has popped, the commodities bubble is >>hurting everyone (except those who trade it), >>inflation is surging (except for workers wages, of >>course), and our economy is collapsing. >> >> Notice that every time the fed indicates it will >>lower interest rates or does, commodities prices surge >>higher, and have reached staggering hieghts. The fed >>is not solving the real estate problem because so many >>americans do not have the financial means anymore to >>buy homes even with the artificially low interest >>rates the fed offers, but the fed hurts everyone with >>the extraordinary high inflation, they are causing our >>economy to collapse. >> >> >> There are some thing government can do to ease the >>current crisis. First, raise the interest rates back >>to where they were last spring, and commodities prices >>will correct rapidly, it will save us alot of money. >>Second, postpone the ethonal fuel program except for >>use as a clean air additive, to replace mtbe. Third, >>the government should help homeowners with sub-prime >>mortgages who have a generally good record of payments >>get regular mortgages, which will keep their rates low >>even with rising interest rates. If the banks do not >>want to give these people prime loans, the government >>should give it to them, they have proven there ability >>to make the payments, there is no reason they should >>be locked into very high interest rates anymore, and >>it could save our economy. I would also add to this >>that the government should rapidly accelerate and >>increase various energy efficiency laws that were >>recently passed, which would guarentee significant >>reduction in our consumption of imported oil in the >>comming decade. >> >> Here in new york city, we used to be able to watch >>100 baseball games a year on free television for each >>team, mets and yankees. Over the years, the cable >>companies bought the rights to the games, and now >>there are almost no baseball games broadcast on free >>television. Why do we now have to pay for baseball >>games we used to get for free? The cable companies >>knew that they could buy the rights to the games and >>charge us money, and the sports "fanatics" would pay >>for what they used to get for free. The question is, >>why do people willingly pay for something that they >>used to get for free? Because they have no back bone, >>they are not willing to fight back, that's why there >>are called sports "fanatics", or fans, because they >>will sacrifice everything for their team. >> >> The same consumer fanaticism of the baseball fan >>exists in all areas of the economy. Americans believe >>in predetory capitalism, until they see their world >>collapsing, as it is now. We spend increasing amounts >>of money to maintain our lifestyle, we refuse to >>change our ways, and we refuse to use the facilities >>of government to remedy the failures of our predetory >>capitalist system. The economic collapse is going to >>be very interesting in this election year. One big >>difference between 29' and now is that 29 was after an >>election, this time we can change the government as >>the crash gets underway. >> >> Keep an eye on the storage levels of grains, there >>is a very high potential for spring flooding in the >>mid west this year, there are some similarities to the >>way the 1993 event began, if we have major crop >>failures in the midwest now we will be in for a very >>rough time. >> >> For excellent commentary on the current situation, >>listen to the tom hartman show on air america, this >>guy really understands what is going on, and what >>affects us, he exposes the lies of the economic >>cheerleaders. >> >> >>>Why the price of wheat has doubled in the last >month? >>> >>> >>>href="http://www.csmonitor.com/2008/0227/p01s05-usec. >h >>t >>>ml">http://www.csmonitor.com/2008/0227/p01s05-usec.ht >m >>l >>> >>> >>>Of course with the increased oil cost going through >>>the cealing, corporate takeover of agriculture, and >>>the price of wheat doubling, people will be going >>>hungry in America. >>> >>>The NY Time also said that the county has lost >>>somthing like 4.5 million jobs since Bush took >office? >>>Does that seem right? That's over 2% of te labor >>>force! >>> >>>>The powers that be are trying to scapegoat the >>>>sub-prime crises, but oil and general inflation are >a >>>>much bigger problem, most of us do not have sub >prime >>>>mortgages. Every time the fed lowers interest >rates, >>>>the price of oil and other commodities surges, they >>>>are fueling inflation like crazy, and accelerating >>the >>>>collapse of the american economy, bush is fiddling >>>>while america's economy collapses. >>>> >>>> It is a shame that someone like mc cain got lost >>in >>>>the republican party, he seems to be a generally >>>>honorable man, but we need to recover from the >>>>catastrophe the republicans have made in the last 7 >>>>years, mc cain is not the man for that job. >>>> >>>> Btw, the dollar is approaching a 50% loss in >value >>>>against the euro, such a collapse in the value of a >>>>currency is typical of a third world country! >>>> >>>>>Ya, and McCain getting Bush's endorsement was the >>>kiss >>>>>of death. >>>>> >>>>>I think people have pretty much figured this out >>>>>already. That is why McCain is already a lame dog. >>>>> >>>>> >>>>>>A dem, of course. So there's a second >consolation; >>>>>>it's gonna be hung squarely around bush's neck >>where >>>>>>it belongs. >>>>>> >>>>>>>I think the Bush rape of the US economy has >>reached >>>>>>>the breaking point. >>>>>>> >>>>>>>The only consolation is that we saw this coming. [ Next Thread | Previous Thread | Next Message | Previous Message ] |
