“Bear is the first in line of what may be a long line of companies taken out by the subprime debacle. The first to go are the mind-bogglingly levered up private equity and hedge funds, who had been doing their own version of the carry trade, borrowing short big time, anywhere from $30 to $32 for every $1 in assets, and then investing long. The subprime debacle blew in, they went upside down and the credit crisis exploded in their face, starting with Thornburg Mortgage, and next Carlyle Capital run by the secretive DC powerhouse, the Carlyle Group. This morning, Carlyle Capital says it will file for bankruptcy court protection.”

http://emac.blogs.foxbusiness.com/2008/03/16/bear-trap/