This is Not Just Mortgages.

It's clear that even with the massive infusion of cash last week, people are finding it VERY difficult to borrow money.

Lenders in general are pulling back, and highly leveraged operators are holding paper that no one wants to buy.

If the Fed cuts interest rates, it's likely to boost the Yen, which cause losses and resulting liquidations of people playing the Yen carry trade.

Over the past 35 years we have moved from a production and investment economy to a consumption and leverage economy, and at some point the music will stop, and it will get very ugly, possibly Argentina crash ugly.