http://www.safehaven.com/credit/credit110102.htm Scroll down about half the way. Interesting article on asset backed securitizations. It also makes the case, that the fed is somewhat irrelevent b/c in the last 26 quarters, the fed, through banks, only created 240b in credit, as opposed to 12t that was created by the equity market through bonds and asset securitization bonds (think credit card, off balance sheet entities and gain on sale accounting). The situation in national century financial enterprises is pretty scary, and it will happen everywhere, though NCFE has some fraudulent implications involved. Imagine if the ASM market all of a sudden stops printing new cash. One would assume that most large banks (exclude JPM of course) are too smart to buy crap like this b/c they can do the DD necessary to avoid it. The smaller regionals are too small to matter. The fed will then matter finally. - Look at how bad MXT's securitizations are fairing, don't even bother looking at CNC's securitization bonds. I'm shocked that this isn't getting much more commentary. I think the NCFE situation is quite interesting. Imagine what happens when companies like Sears face these types of situations. HDI (or Banco Internationalle de Harley). Paralisys? - Bill Gross for some reason seems to hold a lot of this toxic waste. I think we had a bond market bubble a few months back, people piled in, and lots of managers bought VERY toxic crap that was still investment grade for some reason. Now those same guys who were burnt by pets.com will be burnt by some Jerry Springer trailer park trash who owes conseco 10X what he'll likely make in his lifetime, but they will think they're buying something safe. Instead they're investing in deadbeats in many cases.