Yes. Because of fear -- market psychology is again driving this. Its an issue, for sure, but I believe this is a long overdue repricing of credit risk.
To an extent yes, but its not just market psychology.
I just posted estimates are this whole shakeout currently is estimated at about $200 BILLION in losses (and personally I think these estimates are low very low)... to put it in context, the S&L debacle was about $125 BILLION in losses.
So those that think this is some minor blip or is not going to have broad and lasting implications are misinformed or naive.
This is going to get much much uglier, before it gets better.