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Notorious Carlyle Group in trouble!


CofCC.org News Team

The Carlyle Group is an investment group involved in the armament industry. The Bush family, as well as numerous members of the presidents cabinet and members of congress are investors.

Politicians who invest in the Carlyle Group have been criticized as it could be seen as a conflict of interest to their office. When a politician owns interests in armament companies, it is conceivable that they would be more likely to support war.

From the AP…

“This is just an extremely nervous market given the uncertainties overhanging the outlook for the world,” said David Cohen, a regional economist with Action Economics in Singapore. “The clouds are the combination of the oil prices, the nervousness about the U.S. slipping into recession and dragging down the global economy and … the turmoil in the credit markets that doesn’t want to go away.”

Carlyle Capital Corp., managed by the Washington, D.C.-based Carlyle Group, said late Wednesday it expects creditors to seize all the fund’s remaining assets after unsuccessful negotiations to prevent its liquidation. The Amsterdam-listed fund shook financial markets last week after missing margin calls from banks on its $21.7 billion portfolio of residential-mortgage-backed bonds. Carlyle’s troubles have amplified fears that billions of dollars of depressed mortgage-backed securities will flood the market, reducing their value even further.

Caryle shares plunged 70.3 percent to 83 cents in Amersterdam trading Thursday.


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