I’ll also suggest another biggie is whats going to happen to all the 401k’s and pensions of retiree’s. My dad already got dinged by his Lucent retirement package (cut healthcare benefits), so it wouldn’t surprise me if it turns out the pension manager went long on the MBS’ market and he gets dinged again.

If this happens to enough folks with a market turning sour we can expect a run on 401k’s next.