‘“The whole racket this time was designed to dissociate the loan contracts as far as possible from their company of origin, and then to slice and dice the liabilities of ownership so finely that all the lawyers theoretically ever producible in the life of this universe, or several like it, may never succeed in patching together a coherent skein of ultimate responsibility.

In the meantime, a remorseless chain of mere procedure in the form of default and foreclosure notices issued by computers will be sent through the mail, and sheriff's deputies will fan out through the subdivisions with their rolls of yellow tape, tossing residents out on the street (if they haven't already mailed in their keys to some company that fired all its employees and shuttered its offices back in June).” (Clusterfuck Nation by Jim Kunstler).

As the banks tighten up their lending standards; the number of business deals will drop accordingly and the economy will slow to a crawl. This process is already underway. A few “Up Days” in the stock market mean nothing. This is a Force-5 hurricane headed for a trailer park. Nothing will slow it down. The problems are too deeply rooted - the infection too far along. The huge, over-leveraged bets will progressively unravel and the economy will go into freefall. It’s always painful when fundamentals re-emerge and economic gravity takes hold.’

The Grim Reaper Pays A Visit To Wall Street