http://jameshowardkunstler.typepad.com/clusterfuck_nation/2007/07/vanishing-point.html#comments

..........Consider that what you are watching, first-hand is the world's worst credit implosion in human history. Word on the street is the money center banks - stuck with 100's of billions of bridge & LBO loans are yanking the credit lines of every one of their customers - case in point - AHM today. Consider that under the 'new' terms of mortgage lending, I would estimate only 20 percent of previously qualified buyers will be approved to buy a house. You need a mid-700's Fico, a good paying job and 20 percent down (+ closing fees) up front. 20 percent of a normal $250,000 shitbox is 50 grand - in this day of negative savings rate, how many fine citizens can scare up 50 large to buy a mediocre house ? And in California, that 50G down jumps to easily 100.

If 80+ percent of potential buyers disappear, what happens to the housing market ? What happens to companies who no longer have easy access to credit to fix their mistakes ? What happens to the people who work for them ?

All day yesterday, even in my sleep, I kept rolling over the words - "Credit Market Lockup"...........

.............A credit market lockup brings down everything from J6P's job to the umpteen Trillion dollar derivatives market and the worst thing is no person, no corporation, no govt has a chance of standing in it's way.

I just have no words to describe where we are right now. On an intellectual level I've been watching for decades for something like this, but on an emotional level, to finally see it all play out, right here and now............