March 7, 2008 (LPAC) - The impending collapse of Carlyle Capital, the mortgage-backed securities scam set up by Carlyle Group, is best seen as a reflection of the actual bankruptcy of the two biggest mortgage entities in the US - Fannie Mae and Freddie Mac.

Carlyle Capital is frantically liquidating portions of its $22 billion portfolio, trying to stop the hemorrhaging, as its investors are dumping their holdings as fast as they can. Trading of Carlyle Capital stock was suspended today in Amsterdam trading, after they failed to repay lenders.

The $22 billion portfolio did not come from investors, however, but is almost entirely from leverage against the $300 million in shares sold just last year, which was then leveraged into $22 billion in "AAA-rated mortgage backed securities issued by Fannie and Freddie" - about as safe as you can get, the public had been led to believe.

Now the truth is catching up with David Rubinstein and his clever friends at Carlyle, and with the other private equity funds as well, who are looking at collapse, while Fannie and Freddie are living on borrowed time.