re: #412 J.S.

Mark to market impacts the capitalization of the banks and insurance companies. It forces them to pretend that their whole portfolio is for sale today and then makes them put down the market clearing price for the value. Since they have capital requirements that have to get met, a freefall decline in prices puts them below those capital requirements. To stay in business, they need new capital from someplace. Problem is, there is no new capital. Quite nasty really.