Summerrun, if they weren't allowed to package and sell the loans they'd be a bit more discrete about lending seeing as how they'd be holding the bag on defaults.

Snake, I agree. In the long run a hard look will be taken all the way down to inflated appraisals, cozy relationships, etc. I'm not selling. To sell now is to accept major losses. I may buy more soon as there are some real good buys out there now.