“Thornburg Mortgage President Larry Goldstone says ‘there is no possible way’ the company can lose $3.5 billion worth of long-term capital in a portfolio filled with highly rated mortgage assets.”
Is that so, Larry? Clearly, Larry’s either (a) lying, or (b) stupid. Larry’s not stupid, so see (a). At least he displays an aptitude for playing a confidence game.
The problem, of course, is that when your highly-leveraged funding structure exists largely at the whim of lenders who will cover their asses at all costs when problems crop up, eventually you’re going to pay the piper.
