Cioffi & Tannin: Future Household Names, if Anyone Still Owns a House in the Future

Without a market for asset-backed debt securities, banks couldn't replace the cash they had loaned out on mortgages and almost overnight, it became impossible for anyone to refinance a mortgage. More defaults would unquestionably soon follow as the banks stopped lending and started hoarding their cash, and this had a major impact on debt securities as the ratings agencies started to lower their ratings.

The foreclosure crisis had begun.