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| Tara,
June '08 had pretty decent margins (cash-cash) which tappered off quickly as the summer wore on, & went red late summer early fall. Still cash flowed then; but, as insider said, the winter months were when the stuff hit the fan.
Actually June '08 was about as good as the industry has had as of late, $7 corn worked.
Undercapitalized companies, who tried to seperate the origination from the operation, while still being the same, had hell to pay in margins when the roof went off (ie: VSE)
Well, I guess we were all undercapitalized then & most still are; however, some didn't realize the risks involved in their particular risk management plans. Kind of silly thinking you're mitigating risk, when all along you're adding risk to a level that if X happens you're out of business.
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The Irrational Bubble market of 2010.
