Credit crunch...

I read a great post on the Becker-Posner blog today. It seems to sum up the current credit crunch quite well.

"Many lenders have so much of their capital tied up in mortgage-backed securities or other novel forms of capital that are difficult to value that they cannot attract new capital at a price that would enable the lender to continue in business. The sale of the securities would just expose their lack of value." - Richard Posner