Stocks Plunge as Margin Calls Force Defaults, Liquidations
Stocks plunged on Thursday as a fresh round of credit-related problems hit a number of financial institutions. The Dow lost -214.60, the Nasdaq Composite -52.31, and the S&P 500 -29.36.
Carlyle Capital failed to meet a margin call on its $21.7 billion portfolio, resulting in a 58% drop in its share price. The news came after Thornburg Mortgage announced similar problems late on Wednesday, leading to a 52% decline today.
Mortgage lenders and REITs were sold heavily, along with the GSEs, Fannie Mae
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PowerRating) and Freddie Mac
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Washington Mutual
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The dollar fell to another record low versus the euro, and crude oil rose to a record high.
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