| Since funds/banks have been using these MBS for collateral and since they are dropping in value, other banks/funds are "margin calling". The bank/fund is forced to sell the MBS and the kitchen sink to meet the cash demand. Since no market exists for the MBS they are getting pennies, so they have to sell other assets to raise cash. This drepessed the value of everything, to the point where banks/funds stop all lending so you wont be able to get a loan for a car/mortgage/boat/student loan/TV at best buy, etc. |