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I am going to guess that decisions like Volkswagon to be looking to build a plant in the US is probably driven in part by shipping costs which are related to energy.  Any bets that more of the bigger ticket items end up being produced closer to the markets in which they get sold?


The Carlyle story is one I've been following closely.  This company is the poster child of why I started thinking it was a good idea to get out of the market about a year ago and started making my exit plans.  Carlyle capital has had yet almost another $100 million in margin calls, totally breaking down any further chance of negotiating restructuring with its lenders.  Leverage of 32:1 is beyond insane.  And they picked it up during the down turn in August. 

I'm not sure, but I think this company is one that was figuring they could make a killing buying distressed "cheap" debt back in July and August.  The one liner I read in an article last week was something like "now we know who was buying last August."  It looks like the debt was hardly cheap enough.  This fund started last July.

"Among the counterparties for Carlyle's repurchasing agreements, Deutsche Bank, Merrill Lynch & Co. and Bear Stearns Cos. have sold off assets, the Wall Street Journal reported."

So, all these other players are affected by this collapse as well, I would think.

Well, well, look at this"

"The Carlyle Group, based in Washington, DC, has more than $75 billion under management and has attracted a string of high-profile advisers including U.S. President George Bush in the early 1990s and former British Prime Minister John Major."

How poetic that potentially the wealth that Bush is reaping in from his oil policies is going out the other end for being with a company that was just too greedy.  I've been disgusted with Bush from his first year in office, when he worked towards setting up all these fossel fuel powered energy plants, converting fossel fuel to electricity.  And who should be surprised that an oil man would do something like that?

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