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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (108098)	3/6/2008 1:26:43 AM
From: John Vosilla	Read Replies (1) \| Respond to of 306849

None of their models factored in what would happen to their paper if RE prices went down 30-50% or even more. What is most scary about the whole thing is we weren't even in much of a recession as all this was going on, unemployment was low and interest rates were at historic lows..

To: Lizzie Tudor who wrote (108098)	3/6/2008 7:52:58 AM
From: Think4Yourself	Respond to of 306849

I think we are going to see a lot more Thornburg stories in the coming weeks. biz.yahoo.com Carlyle Capital Receives Default Notice and Investment Firm Faces Mounting Margin Calls NEW YORK (AP) -- Investment firm Carlyle Capital Corp., an investment fund managed by Carlyle Investment Management, said late Wednesday it has been the subject of margin calls, with one creditor issuing a notice of default. Carlyle initially received four margin calls totaling $60 million and was able to meet them. It then faced an additional seven calls on Wednesday totaling more than $37 million. It has met three of those margin calls thus far, but also received one notice of default. The company said it expects to receive at least one additional default notice among the calls it has yet to meet. Margin calls force borrowers to repay loans or put up more collateral to secure them. Investors in mortgage-backed debt and other securities have faced margin calls in recent weeks as the market for the securities and debt severely deteriorated. Credit markets had already been tight, with limited liquidity available since the middle of 2007, but have worsened in recent weeks. Thornburg Mortgage Inc., a mortgage originator and investor, is facing similar calls and default notices from its creditors as the price of securities and debt has plummeted in the secondary markets. Since August, Carlyle Capital has sold about $1 billion in assets to improve its liquidity and reduce its risk. Carlyle Investment Management is an affiliate of the private equity firm The Carlyle Group. Last month an affiliate of the private equity firm Kohlberg Kravis Roberts and Co. delayed payment on billions in loans and opened debt restructuring talks with creditors due to the credit crisis.

To: Lizzie Tudor who wrote (108098)	3/6/2008 8:16:21 AM
From: ChanceIs	Read Replies (1) \| Respond to of 306849

>>>Here Thornberg has to pay for everybody elses sins.<<< This is always, always, always the case. Even in the tech bust. There was collateral damage although Cisco and the like survived. I can't say I know much about Thornburg. The merchant generation bust was the same. Enron carried a AAA rating until shortly before it filed. Then the rating agencies in their embarrassment and fear downgraded the whole group with viciousness and abandon. They are in a funny position today because if they had downgraded the monolines, they everything else they rated AAA would be seen to be BB by dawn the next day. The banks wouldn't lend at anything under usuary rates. The press got very negative. The prosecutes had a field day. If that bust serves as a model, then we have another year to go. The best companies are usually the last to fall. Keep an eye on TOL for that phenomena.