Re: Carlyle faces more margin calls

On Mar 8, 1:24 pm, "John Galt" <whoisjohng...@[EMAIL PROTECTED]
> wrote:
> "Uncle_vito" <uncle_vito2...@[EMAIL PROTECTED]
> wrote in message
>
> news:UcadnfWyfaAlI0_anZ2dnUVZ_oSunZ2d@[EMAIL PROTECTED]
>
> >I cannot believe these IDIOTS used margin.  I guess they were trying to
> >JUICE their returns.  My financial advisor said never to use margin.
>
> > These idiots are not using their money so they do not care.  They are
> > investing your and my money so they do not care if they default.
>
> > Vito
>
> Every private equity firm is margined 50/50, more or less. This is only
the
> first of the margin calls.
>
> JG
>

By 50/50 do you mean that half are levered or that all are levered on
average 2:1?
In either case your estimate is scary low..

According to Bloomberg, CCC raised approx 300 Million to fund 22
Billion worth of Assets
that is 73:1 leverage.. I keep waiting for the update to add a decimal
place or a zero but I've not seen one so far. Private equity is
nothing.. wait for the hedge funds to start to de-lever..