I've only been in structured finance for a few months, but isn't the main problem with the current credit crisis that nobody really knows which debt is bad debt? Folks pack up a bunch of loans, offset variability to a third party so they didn't have to book the deals and sell tranches. And they didn't carry Subprime Warning Labels, the good stuff just says AAA. If Joe Carry Trader has a tranche of subprime, it doesn't matter how many As or if he's the first to be paid - he's still got a lot more risk than he thunk he had. That's why even the good debt isn't selling. Nobody knows if it really is good debt, even though it just got packed and rated. But I could be wrong about carry. Maybe they do the really good stuff like Ts. Maybe a lot of it. But a nice chunk has to be credit cards or autos or some other consumer side stuff. And JCT doen't really know where that is.