But as David Goldman argues, it really comes down to this: The market value of subprime/mortgage related assets is plunging.
These three charts deserve a lot of attention.
Here’s AAA-rated subprime…
And securitized commercial mortgage backed securities
And the super-ugly AA-rated stuff.
Thus the plunge in bank stocks — which remain highly exposed to all this stuff (although as Goldman points out, less so, thanks to Treasury buying) have fallen accordingly).
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